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Frequently Asked Questions

The bigger question is to whom they are letting out the property as this makes a major difference in the way the decision making may be done. In the case of letting an area to a REGISTERED OWNER the Trustees may decide and deal with this matter. Should the other party be a 3rd party, i.e. not a registered Owner, the Board of Trustees would have to obtain an unanimous decision by the Owners.

Technically only the USAGE of this are belongs to you as this still forms part of the common property.

CSOS stands for the Community Services Ombud Service. The CSOS provides a cheaper and faster platform of dispute resolution. This service is available for all Scheme members where disputed can be resolved without an Attorney. Any CSOS order has the same effect as an Order of the High Court.

An AGM must be held within 4 months of the Body Corporates year end. 14 days’ notice to all Owners must be given by registered mail. Notices must also be sent to Bond Holders and the Managing Agent. Depending on additional matters that may be placed on the Agenda either 30- or 60-days’ notice must be given.

All owners (everyone present) at a duly constituted general meeting must vote in favour of the resolution. If one owner is against the resolution, the motion is defeated. At least 80% of owners, calculated both in value and in number, constitute the quorum. For a meeting with a unanimous resolution on the agenda 30 days must be given. There is one exception in that a resolution proposing the installation of pre-paid meters requires at least 60 days’ notice.

The contribution (levy) charged to a unit will fund a proportionate share of the costs of running the communal areas, which includes the maintenance of the exterior of all units in the Scheme. These costs may include, but are not limited to: security, intercoms, telephone, fire alarms, fire extinguishers, pool service and maintenance, cleaning, lighting, garden service and maintenance, general maintenance and repairs, service providers, etc. The contributions cover the cost of the home insurance (body corporate / sectional title insurance), public liability insurance and fidelity fund insurance for the Scheme. Auditing, tax submissions and financial administration fees for the Scheme are also covered by the contributions (levies). Scheme rates and taxes (if applicable), common property water, refuse removal (if applicable), effluent costs for the common property, as well as common property electricity is covered by the contributions (levies). It is a requirement of the new Act that all Schemes obtain, implement and budget for a Maintenance, Repair and Replacement (MR&R) plan (10 year plan).

Absolutely! The Act requires the Trustees, addressed in the Act as Scheme Executives, to always act in good faith towards the Body Corporate, and may be personally held responsible should the Body Corporate suffer loss due to their actions.

As the exclusive use area is common property, the Body Corporate must maintain such area.; Keep in mind that some Schemes have amended their rules to change this to Owners responsibility.

In terms of the Act every Owner must pay a levy on any exclusive use area to provide for the reasonable maintenance thereof.

As the exclusive use area is common property, the Body Corporate must maintain such area.; Keep in mind that some Schemes have amended their rules to change this to Owners responsibility.

In terms of the Act every Owner must pay a levy on any exclusive use area to provide for the reasonable maintenance thereof.

Units very often has 2 numbers, one being the number on the door, and the second number being the way your unit is identified on the sectional Title plan. Whilst door number may have alphanumerical numbering, the unit will always be identified in numerals. 1, 2, 3, … In full title Schemes you will have a stand and street number..

The PQ,(Participation Quota), is the percentage of the total Body Corporate which “belongs” to a unit. This is also used to determine the value of your vote in general meetings.

A resolution passed by at least 75%, calculated both in number and value, of the votes of the members of a body corporate who are represented at a duly constituted general meeting (75% of quorum). Alternatively, it is agreed to in writing by members of a body corporate holding at least 75%, calculated in value and number, of all the votes. 30 days’ notice of the meeting requiring a special resolution must be given. Examples requiring a special resolution: Making or changing conduct rules, extending the boundaries of a section.

A quorum is the amount or percentage of Owners at a meeting required so that the meeting can proceed. In Sectional Title schemes the quorum is 33% , counted in number and value, for an AGM or any other general meeting of Owners. The exception that when a unanimous resolution is required the quorum is 80% of Owners.

Levy is a commonly used word for all contributions to be paid by an Owner on a yearly or monthly basis.

The ten-year maintenance plan is a relative new concept included in the 2016 legislation. Its purpose is that a competent person or entity makes a projection of all the major maintenance items required in the next ten years. It then provides for a compulsory fund to be established which requires its own book of account and budget. The rules regarding the application of these funds are strict and must all Trustees / Bodies Corporate abide by them.

The Chairman is no different from any other Trustee, he / she has no special rights beside that the Chairman can make a casting call when the Trustees are deadlocked. Even this right is limited as it may not be exercised when there are only 2 Trustees present.