Sectional Titles

MCS Courier April 2012

The New Companies Act and Homeowners' Associations
Part 2 of this article concentrates on the keeping of an electronic register of member's details and the use of electronic communications to hold meetings and to adopt resolutions.

Proceedings for Levy Recoveries - Who will have jurisdiction? 
Tertius Maree discusses section 3(2) of the new Sectional Titles Schemes Management Act, which is due to come into operation soon, which determines that levies "may be recovered by the body corporate by an application to an ombud from the persons who were owners of units ..."  He submits that an interpretation of the use of the word "may" which makes the application to an ombud optional, may be incorrect and that the ombud procedure will in fact become compulsory for the launch of all levy recovery procedures.  The idea that a specialised bureaucracy will be dealing with processesfor levy recoveries is in principle a good one.

Determination of Special Levies
Tertius Maree is of the opinion that the recovery of special levies from owners of exclusive use areas if the budget in respect of such expenses was inadequate, is acceptable.  Such a levy becomes due by the owners of sections on the passing of a trustees' resolution and is payable in one amount or in the instalments determined by the trustees.   An example of such a resolution is given.

No Pets Policy
A simple no-pets policy devised by trustees is simply a no-go.

MCS Courier April 2012

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