Paddocks Press – September 2010

Paddocks Press is a monthly free digital newsletter published to educate and update the sectional title community. The issue (Volume 5, Issue 9) has a number of articles of interest, including:

STSM and CSOS Bills - Graham Paddock
Why do they need to be separated?
On the second occasion when the Department of Human Settlements Portfolio Committee deliberated on the STSM Bill, the first question to be addressed was the reason why this Bill needs to be separate from the CSOS Bill.

The two bills exist for fundamentally different purposes. The STSM Bill can be compared to the Share Blocks Control Act in that it regulates the management and control of a particular type of community scheme, whereas the CSOS Bill seeks to ensure the cost-effective resolution of disputes and good governance in all community schemes.

Electricity bills for sectional title - Newsletter team
Are you prepared for the increase?
A regular Paddocks Press reader, Sara McMath, has drawn to our attention serious issues she and other ESCOM users are facing in some sectional title complexes. Sara says that the problem is that many complexes' electricity bills are charged as a single unit and thus the highest per-unit tariff applies.

The application to arrange for a special sectional title tariff must be made before the end of September 2010.

M.D. Mitchell v Die Beheerliggaam RNS Mansions - Neil de Goede
Simplifying a compounded issue
Levy defaulters and their legal representatives often contest the liability to pay compound interest on arrear levies. They dispute their liability on the basis that compound interest can only be raised where agreement between the parties or statutory provision to that effect exist. According to Neil, the High Court has now given the body corporate and levy debtors an unequivocal answer in its ruling.

In this article, Neil looks at the judgment of the case in question and provides some insight into what this means for sectional titles.

Amending scheme rules step by step- Jennifer Paddock
Jen's 8-step recipe for making rules at meetings
There are two types of rules prescribed under the regulations to the Sectional Titles Act, 1986 (the Act) - management and conduct rules. These rules are generally applicable to all sectional title schemes, but do not cater for the peculiarities of every scheme and therefore the Act makes provision for their amendment.

This article sets out, step by step, the correct legal procedure to follow when amending scheme rules by taking a resolution at a meeting.

Q & A with the Professor - Graham Paddock replies to a question regarding a farewell gift of R57 000.

Paddocks Press Vol 5, Issue 9