Sectional title schemes: the real value of good governence
Tertius Maree highlights the need for prospective buyers to understand that the quality of management will have a direct impact on their rands and cents. To this end he lists a number of markers which will indicate to prospective buyers whether the quality of the management is good or bad and the nature of the scheme. such as:
- Unresolved disputes,
- The number of units being let,
- Get a copy of the management and conduct rules and the sectional plan showing the layout of all the sections and their participation quotas.
- Get copies of the financial statements.
- Get information about arear levies and the existence and level of a reserve fund.
- Check the condition of the common property.
Basically owners cannot afford the luxury of non-involvement in the affairs of their scheme.
Levy determination: checklist for trustees
A checklist for trustees to enusure everything is in place for the determination and legal recoverability of ordinary levies, increased levies, special levies and additional levies.
End of the tri-partite agreement?
No, the tri-partite agreement is not yet dead and should be utilised whenever the purchaser of a unit is required to take over responsibilities of the seller in respect of any outstanding special levies.
The controversial decision of Solidatus Body Corporate v De Waal and Others has had an enduring and unfortunate impact on sectional title administration since it was delivered by the TPD in May 1997.
The new Companies Act and Homeowners' Associations
A brief synopsis is given of the impact the new Act will have on pre-existing Homeowners' Associations.