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RECONFIRM THE IMPORTANCE OF THE CHANGES TO ANNEXURE 8 OF THE SECTIONAL TITLE ACT AND THE CONTINUATION OF / INCREASE IN LEVIES


Call us – ensure your investment increases by firm management


We offer effective complex management provided by qualified Portfolio Managers who pride themselves on rendering “service excellence”. Imber PM Somerset West Property Management, supported by the Imber PM brand, is fast establishing itself as a market leader in the Sectional Title and Home Owner Association industry.

 

Our competitive advantage is we provide owners a one-stop shop: property and rental management as well as sales. This is a unique and cohesive partnership which facilitates the speedy handling of matters that may otherwise negatively impact upon the reputation of a complex.

 

Some of the services we offer:

  • Full administration and management of the Body Corporate/ Home Owners Association, including book keeping.
  • Preparation of annual estimated expenditure in order to determine levies.
  • Assistance and advice to trustees on procedural matters to ensure compliance to the Sectional Title Act 95 of 1986 and any amendments thereto.
  • Arrange annual audit.
  • Short to long-term maintenance planning.
  • Arrange appropriate insurance.
  • Payment of contractors, staff and any legislative deductions.

Annexure 8 – yearly levy increase rule, changes explained


As seasoned Property Managers, we will assist the directors/trustees and owners in the entire day to day management, turning the management process into a pleasurable experience. Undoubtedly, for those seeking integrity, high ethical standards, professionalism and expertise from their Property Managers, one cannot err by choosing a progressive company like -SHIELD PROPERTY MANAGEMENT / IMBER PROPERTY MANAGEMENT
Please feel free to contact us on 084 420 1970 or 072 749 7198

MORE CHANGES TO ANNEXURE 8 OF THE SECTIONAL TITLE ACT
On the 14th March 2013 some amendments to the Management Rules (annexure 8) were published. I would like to highlight one of these, that could cause confusion, in the future. The previous amendment published and that came into effect in October 2010, where the trustees were empowered to increase the levy amount from the end of the financial year by up to 10%, until the AGM has been removed and the following has replaced ……..


Section 31 of the Management Rules state
4(B) The trustees may from time to time, when necessary, make special levies upon the owners or all upon them to make special contributions in respect of all such expenses as are mentioned in, rule 31(1) above (which are not included in any estimates made in terms of rule 32(2) above), and such levies and contributions may be made payable in one sum or by such instalments and at such time or times as the trustees shall think fit.

This would mean that the trustees should have an estimation of the expected budget before the auditors have done the financials for the previous financial year. This amount must then be calculated up to the month that the AGM is to be held (say for 4 months) and notify the owners, in writing, of such ‘special levy’ 30 days before the implementation. The trustees need to explain the reason for the ‘special levy’ and to notify the owners over what period these payments are to take place.

Article by – LILIAN WALDECK
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About My Business:

Professional Sectional Title Services offered. Qualified in all aspects of Sectional Title Management, Home Owners Associations and Retirement Villages. We have been involved in this line of work for a number of years. Developer or an established Scheme, we can make a difference, because we enjoy the challenges and we are good at it. We can assist the Trustees in the correct interpretation of the Act and offer you the following services:- Liaise with Trustees Body Corporate Owners Tenants / Rental Agents Contractors Meetings Annual General Meetings Special General Meetings Trustee Meetings Financial Preparation of Annual Budget/s Ensuring write up of books to trail balance Ensuring Body Corporate Books sent out for Audit Respond to Levy and other related queries Prepare and monitor monthly budget comparisons Permanent Documents Safe keeping of Management and Conduct Rules or Memorandum and Articles of Association Sectional Title Plans Insurance Schedules Minutes of all meetings General Correspondence Maintenance Assisting in the obtaining quotations Supervision of Maintenance Appointment of contractors Administrative Payment of contractors Debits / Credits on levy accounts Payment of suppliers Calculation of Special Levies Account Queries Obtaining approval of invoices from Trustees Payment of wages / salaries Levy Clearance Certificates Credit Control Collection of outstanding levies Legal Liaison Maintaining a healthy Bank Account Payment of staff salaries and submission of PAYE, UIF returns Sending out of monthly levy accounts Personnel Employ general workers for the complex Preparation of Employment Contracts Ensuring adherence to Labour Relations Secretarial Minute taking at all meetings Action from the minutes Circular letters General Correspondence Insurance Ensure complex adequately insured Processing of insurance claims Appointment of Contractors Finalisation of Insurance Claim Liaison with Insurance Broker General Assistance to all complexes with regard to the action and the interpretation of Act

Tentant in Sectional Title Schemes and owners rights


An owner of a property does not have absolute right to do as he or she pleases, being subjected to municipal bylaws, neighbourhood and other laws.

A tenant will need permission from her landlord if she intends to make certain changes such as installing burglar bars or safety gates to the doors.

The owner in turn needs to notify the Managing Agent to obtain permission from the Trustees before installing these as there may be specified designs in the rules that will have to be followed.

Maintenance – ongoing need


If you find yourself neglecting the small items, you’ll soon be on the hot seat for more expensive repairs. Building managers can find themselves with a run-down, in-desperate-need-of-repair building a lot sooner that they think

HOW AND WHEN CAN YOU TERMINATE YOUR CONTRACT WITH YOUR MANAGING AGENT?


HOW AND WHEN CAN YOU TERMINATE YOUR CONTRACT WITH YOUR MANAGING AGENT?

This is a question that often gets asked. Before I get into the items stated in the Act, I would like to advise all trustees to have a look at their current signed contract. Nine out of ten times there is a clause in the wording that is never highlighted it goes something like this –

DURATION / TERMINATION OF THE AGREEMENT:
This agreement shall commence on the effective date stipulated in Paragraph 3 hereof and the duration / termination shall be in terms of Prescribed Management Rule 46, as amended from time to time; provided that except in the event of Prescribed Management Rule 46 (2)(a) applying, any notice of termination shall be given in writing at least 2 (two) months prior to renewal date which will fall on the first day of the Body Corporates financial year.

Each and every renewal of this Agreement will be subject to the same terms and conditions set out herein, except where specifically altered in terms of a separate written Agreement signed by both parties.

This means that the contract is automatically renewed from year to year unless the trustees give notice to terminate their contract. This will only become effective at the end on the contract. Therefore the managing agent company can hold the trustee to the full duration of the contract.

It is my advice to all trustees, considering you do not have a crystal ball, foretelling the future, to immediately remedy this part of the contract, put the managing agency company on notice, soonest, and get the new contract to state that it is a month to month contract with a two month notice period either way, effective from the anniversary date. JUST IN CASE.

I have been a Sectional Title Manager for about 8 years now. I am extremely passionate about what I do, so much so, that I have decided to produce a monthly newsletter, which will contain snippits of information, which are relevant to Sectional Title Management, and Home Owners Associations. This will include any new changes in the Acts. Please mail me if you are interested in receiving a copy of this.

HELPING TO KEEP YOU IN THE LOOP, LILIAN WALDECK

Choosing the right Trustees is so important


The importance of choosing the trustees to represent you must not be overlooked. They act in a position of trust in representing the owners of all the units (The Body Corporate) and it is their duty to fully guide the budget according to what was approved by the owners and ensure that all accounts are paid. It is under their guidance that the investment of the owners will prosper. Any owner wanting to become a trustee must realise that this carries responsibility and should not be entered into lightly. If you have a managing agent make the most of their knowledge of the Sectional Title Act to ensure that no law is broken,

The Managing Agents role is to work hand in hand with the trustees, reverting to them constantly and keep them up to date on all developments that are taking place, whether it is in the complex or the finances. They should help and advise the trustees when they want to implement a decision, to ensure that it is within the bounds of the law and in the interest of all the owners (The Body Corporate). The trustees should realise that ultimately the responsibility and possible comebacks is theirs alone.

Sectional Title Levies – MUST BE PAID.


It has come to my notice that first time buyers, buying into a Sectional Title Scheme, are not informed or it is not explained carefully enough, that the payment of levies to the Body Corporate is unavoidable and that Levies do not fall under the Consumer Protection Act. They are to make sure from the beginning that this is included in their monthly payment plan.
Non -payment of levies lead to various, not so nice issues. If your outstanding levies is handed over to an attorney for collection the will charge a collection fee and other legal fees (YOU WILL HAVE TO PAY), there is interest changes on outstanding monies on your monthly levy statement (YOU WILL HAVE TO PAY), if the attorney gets a judgement against you (YOU WILL BE BLACKLISTED), at any ordinary vote needs to be taken at a Body Corporate meeting (YOU CANNOT VOTE). The list can go on and on. The main trend in the above is that the owner not paying their monthly levy is the only one that is eventually going to pay and they will not have a say. Not a nice place to be, and the only one they can blame is themselves.

Prescribed Conduct Rules made under the Sectional Title Act


Attached to the following statement you will find a list of rules numbered 1 to 11 which are the standard conduct rules which apply to all sectional title schemes. These rules apply because they are part of the Sectional Title Act 95 of 1985, called Annexure 9 (Annexure 8 refer to the Standard Management Rules)
As you will see, these are the basic rules which apply. These rules may be changed, however any changes to them need to be approved at a Special General Meeting by way of a special resolution. The amended approved rules, are to be filed at the Deeds Office, which will then make them enforceable. If this step is not taken, the standard rules will remain in force.


(Contained in Annexure 9 to the Regulations made under the Sectional Titles Act)

1. Animals, reptiles and birds
(1) An owner or occupier of a section shall not, without the consent in writing of the trustees, which, approval may not unreasonably be withheld, keep any animal, reptile or bird in a section or on the common property.
(2) When granting such approval, the trustees may prescribe any reasonable condition.
(3) The trustees may withdraw such approval in the event of any breach of any condition prescribed in terms of sub-rule (2).

2. Refuse Disposal
(1) An owners or occupier of a section shall-
(a) maintain in an hygienic and dry conditions, a receptacle for refuse within his section, his exclusive use area or on such part of the common property as may be authorised by the trustees in writing;
(b) ensure that before refuse is placed in such receptacle it is securely wrapped, or in the case of ins or other containers, completely drained;
(c) for the purposed of having the refuse collected, place such receptacle within the area and at the times designated by the trustees;
(d) When the refuse has been collected, promptly return such receptacle to his section on other area referred to in paragraph (a).

3. Vehicles
(1) No owner or occupier shall park or stand any vehicle upon the common property, or permit or allow any vehicle to be parked or stood upon the common property, without the consent of the trustees in writing.
(2) The trustees may cause to be removed or towed away, at the risk and expense of the owner of the vehicle, any vehicle parked, standing or abandoned on the common property without the trustees’ consent.
(3) Owners and occupiers of sections shall ensure that their vehicles, and the vehicles of their visitors and guests, do not drip oil or break fluid on to the common property or in any other way deface the common property.
(4) No owners or occupiers shall be permitted to dismantle of effect major repairs to any vehicle on any portion of the common property, an exclusive use or in a section.

4. Damage alteration s or additions to the common property
(1)An owners or occupier of a section shall not mark, paint, drive nails or screws or the like into, or otherwise damage, or alter, any part of the common property without first obtaining thee written permission of the trustees.
(2)Not withstanding sub rule (1), an owner or person authorised by him may install-
(a) Any locking device, safety gate, burglar bars or other safety device for the
protection of his section; or
(b) any screen or other device to prevent the entry of animals or insects;
Provided that the trustees have first approved in writing the nature and design of the device and the manner of its installation.

5. Appearance from outside
The owner or occupier of a section used for residential purposes shall not place or do anything on any part of the common property, I including balconies, patios, stoeps, and gardens which, in the discretion of the trustees, is aesthetically displeasing or undesirable when viewed from the outside of the section.

6 Signs and Notices
No owner or occupier of a section, used for residential purposed, shall place any sign, notice, billboard or advertisement of any kind whatsoever on any part of the common property or of a section, so as to be visible from the outside of the section, without the written consent of the trustees first having being obtained.

7. Littering
An owners or occupier of a section shall not deposit, throw, or permit or allow the be deposited or thrown, on the common property any rubbish, including dirt, cigarette butts, food scraps or any other litter whatsoever.

8. Laundry
An owner or occupier of a section shall not, without the consent in writing of the trustees, erect his own washing lines, nor hang any washing or laundry or any other items on any part of the building or the common property so as to be visible from the buildings or from any other sections.

9. Storage of inflammatory material and other dangerous acts
An owner or occupier shall not store any material, or do or permit or allow to be done, any other dangerous act in the building or on the common property which will or may increase the rate of the premium payable by the body corporate on any insurance policy.

10 Letting of units
All tenants of units and other persons granted rights of occupancy by any owner of the relevant unit are obliged to comply with these conduct rules, notwithstanding any provision to the contrary contained in any lease or any grant of rights of occupancy

11. Eradication of pests
An owner shall keep his section free of white ants, borer and other wood destroying insects and to this end shall permit the trustees, the managing agent, and their duly authorized agents or employees, to enter upon his section from time to time for the purpose of inspection the section and taking such action as may be reasonably necessary to eradicate any such pests. The cost of the inspection, eradicating any such pests as may be found within the section, replacement of any woodwork or other material forming part of such section which may be damaged by any such pest shall be borne by the owner of the section concerned.

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