Background

The Sectional Titles Schemes Management Act (STSMA), together with the Community Schemes Ombud Service Act (CSOSA), both promulgated in 2011, has introduced a radical change in sectional titles legislation, both in the sectional titles industry and in communal living in general.

The regulations in terms of these Acts were published in the Government Gazette on 7 October 2016 and came into operation on the same day.

These two Acts are linked in respect of their administration. The third generation management and conduct rules contained in Annexures 1 and 2 to the regulations represent a most important innovation.

Topics

  • The interrelation between the Sectional Titles Act, the STSMA and the CSOSA
  • major innovations introduced by the STSMA
  • major features of the CSOSA
  • major and minor innovations under the new third generation management and conduct rules;
  • the approval, custody and amendment of scheme rules and their accessibility to the public;
  • the purpose and scope of the reserve fund and its impact on special levies;
  • the maintenance, repair and replacement plan introduced into the management rules;
  • the management and transparency of the financial affairs of the body corporate;
  • professional management under an executive managing agent;
  • maintenance of and improvements to the common property;
  • the relationship between the new management and conduct rules and the Ombud Service established under the Community Schemes Ombud Service Act.

Transitional provisions

See the transitional provisions which will only take effect after the date of publication here.

Previous manual on similar topic

In September 2012 a manual was provided on the innovations in sectional titles introduced by the STSMA 8 of 2011.  This follow-up manual has a much broader scope.  It covers all the topics mentioned above and focusses on the practical innovations introduced by the regulations of both the STSMA and the CSOSA.