Your Trustees are correct! The Body Corporate consists of all owners of sections in the scheme. At a general meeting the Body Corporate elects Trustees – if this is what you want to be! – The Sectional Titles Act in Prescribed Management Rule 5 states that a Trustee or alternate Trustee shall not be required to be an owner in order to qualify for office as a Trustee provided that the majority of Trustees are owners or spouses of owners.
Section 37(1)(b) of the Sectional Titles Act requires owners who have the benefit of exclusive use areas, either registered in terms of the Act or created under the Rules of the 1971 Act, to make extra contributions (call it an exclusive use levy) to cover the costs of rates, taxes, maintenance and insurance for this area. Exclusive use areas created under the rules of the current Act are not automatically required by the Act to be levied a contribution – unless it is specifically required by the rule that created them.
Exclusive use rights are either registered – in which case it is shown on the sectional plan registered at the Surveyor General’s Office and at the Deeds Office – or it can be created under the Rules filed at the Deeds Office. Anything else is not exclusive use areas. You are therefore not responsible for the maintenance of your section’s roof as it is common property and must be maintained by the Body Corporate.
Section 15B(3) of the Act stipulates that the Registrar shall not register a transfer of a unit unless there is produced to him a certificate from the Body Corporate certifying that all monies due to the Body Corporate have been paid.
Section 39(1) of the Act allows the members of the Body Corporate to issue directions to and place restrictions on the Trustees. It is often used to restrict the Trustees from spending more than a certain amount of money on any item without consulting the members, but it can also be used to direct them to carry out certain actions – i.e. investigate the Conduct Rules etc.
Conduct Rules are drawn up by either the Developer or the Trustees and must be approved with a special resolution taken by the Body Corporate. Thereafter the Conduct Rules must be filed at the Deeds Office. Only then do the Rules become enforceable.
A special resolution can be passed in one of the following ways:
Section 15B of the Act contains a requirement that the Registrar of Deeds may not register the transfer of a section until a certificate has been produced by the conveyancer that no money is owing to the Body Corporate as at the date of registration. As transfer will not be registered and the certificate is applying to amounts owed by the seller – the seller is required to pay for the certificate. The buyer and seller can however decide to make an arrangement that the buyer will pay for it.
The Act stipulates in section 27(1)(b) that all exclusive use areas in the developer’s name are to be ceded (free of charge) to the Body Corporate when the last section in his name is transfer to a new owner.
Prescribed Management Rule 57 states that no business shall be transacted at any general meeting unless a quorum of persons is present in person or by proxy and entitled to vote at the time when the meeting was scheduled to start.
A quorum at a general meeting shall be:
The Act also prescribes in Prescribed Management Rule 58 that if a quorum is not present within half an hour the meeting will be adjourned to the same day, same time, same place the next week. That is why it is so important that owners attend meetings and where possible give their proxy to another owner or the Chairman when they cannot attend the meeting.
A section can be either a specific portion of a building (a flat) or a building in itself (a townhouse). A section must be shown on the sectional plan and each section is given a different number. The section number does not need to correspond with the door number. Lock-up garages may either be common property (with or without exclusive use rights) or constitute separate sections.
The participation quota (PQ) of a section is a percentage expressed to four decimal places (i.e. 0,3488). It is calculated by dividing the floor area of a section by the sum of the floor areas of all the sections in the scheme (i.e. the larger a section, the larger and PQ and the other way around). The PQ determines the size of the owner’s undivided share in the common property ; it determines the value of the vote of an owner at a general meeting (where the votes are determined by value); and most importantly it determines the amount of the monthly levy payable per section (unless otherwise decided by the Developer in the beginning or the Body Corporate)
In short :
In Full title the members form a Homeowners Association – In Sectional Title the members form a Body Corporate.
In Full Title the Association is a Section 21 Company governed by the Companies Act 61 of 1973 and the Memorandum and Articles of the Association– In Sectional Title the Body Corporate is governed by the Sectional Titles Act 95 of 1986
In Full Title the members at a general meeting elect a Board of Directors to handle the day to day management – In Sectional Title the members at a general meeting elect Trustees.
In Full Title you own your own stand – in Sectional Title you own an undivided share of the stand the complex was built on.
In Full Title you maintain your own unit – in Sectional Title the outside of your unit is common property and maintained by the Body Corporate.
Fortunately not in most cases! The Act in Prescribed Management Rule 64 states that an owner shall not be entitled to vote at any general meeting if any contributions payable by him in respect of his section have not been paid – except in cases where a special or unanimous resolution is required.
Yes. Section 44 (1)(f) of the Act states that an owner shall notify the Body Corporate of any change of ownership, or of mortage changes or any other dealings in connection with his section.