Sectional Title & Homeowners Associations: Most Frequently Asked Questions & Responses
At Solver Property Services, we see the value of providing our owners with information relating to the most common queries we receive. This helps ensure everyone is well-informed and can enjoy a smooth living experience in our communities.
Sectional Title Developments
Q: What is a sectional title scheme?
A: A sectional title scheme is a property development where individuals own sections of a building, such as apartments or townhouses, and share ownership of common areas like gardens and parking lots.
Q: Who is responsible for maintenance in a sectional title scheme?
A: The body corporate, which consists of all the owners, is responsible for maintaining the common property. Individual owners are responsible for the maintenance of their own sections.
Q: How are levies calculated in a sectional title scheme?
A: Levies are calculated based on the participation quota of each section, which is determined by the size of the section relative to the total size of all sections in the scheme.
Q: How does voting at an Annual General Meeting (‘AGM’) work?
A: Voting at an AGM can vary depending on the issue at hand:
- - The most common form is a normal majority resolution, where the vote passes if the majority of sectional title owners (based on value) support the resolution.
- - This method is typically used for approving previous minutes, electing trustees, approving insurance requirements, approving the annual budget etc.
Q: Can I nominate myself as a trustee?
A: Yes, you can nominate yourself as a trustee unless you are disqualified under the STSM Act or there is a specific reason, such as a judgment or CSOS order against you, that prevents your vote from counting on an ordinary resolution.
Q: Do I require authorisation to extend my section?
A: Yes, you need to obtain the body corporate’s consent through a special resolution to extend your section. The owner requesting the extension will bear the costs of amending the sectional plan, recalculating participation quotas, and registering the amended plan.
Q: Who determines how each owner pays off their special levies?
A: The body corporate may impose a special levy to cover unforeseen expenses not included in the last AGM’s approved budget. The trustees will decide whether this levy should be paid in a lump sum or in instalments. This is sometimes decided at Annual General Meetings too.
Q: Can I refuse to pay my levies?
A: No, owners are legally obligated to pay their levies in full and on time. Non-payment can severely impact the scheme’s finances, making it crucial to recover these costs for the scheme’s maintenance and upkeep. Therefore, it’s imperative to always keep your levies up to date.
Homeowners Associations (HOAs)
Q: What is a homeowners association (HOA)?
A: An HOA is an organisation in a residential community that enforces rules and regulations, maintains common areas, and manages community affairs. Membership is typically mandatory for property owners within the community.
Q: What are the benefits of an HOA?
A: HOAs help maintain property values by ensuring that the community is well-kept and that residents adhere to community standards. They also provide amenities and services that individual homeowners might not be able to afford on their own.
Q: How are HOA fees determined?
A: HOA fees are determined by the association’s budget, which covers the cost of maintaining common areas, amenities, and administrative expenses. Fees are typically divided equally among all homeowners.
Q: Can I nominate myself as a Director?
A: Generally, yes, you can nominate yourself as a Director, but this depends on the provisions in the Memorandum of Incorporation (MOI) or constitution.
Q: How does voting at an AGM work?
A: Voting procedures at an AGM can vary based on the MOI and constitution. Typically, there are different forms of voting, such as a normal majority resolution, where the vote passes if the majority of homeowners support the resolution.
Q: Do I require authorisation to make changes to my property?
A: Yes, significant changes to your property usually require HOA approval to ensure they comply with community standards and do not negatively impact the community’s overall appearance or value. Please always reach out to the Directors and/or managing agent first.
Q: Who determines how each owner pays off their special levies?
A: The HOA may impose a special levy to cover unforeseen expenses. The board of directors will decide whether this levy should be paid in a lump sum or in instalments. This is all provided that there are no restrictions in the MOI or constitution in this regard.
Q: Can I refuse to pay my HOA fees?
A: No, homeowners are legally obligated to pay their HOA fees in full and on time. Non-payment can severely impact the community’s finances, making it crucial to recover these costs for the community’s maintenance and upkeep. Therefore, it’s imperative to always keep your levies up to date.
Applicable to Both Sectional Title Developments and HOAs
Q: How can I get involved in the management of my community?
A: Owners can get involved by attending meetings, joining committees, or even running for a position on the board of trustees or directors. Active participation helps ensure that your voice is heard, and that the community is managed effectively.
Q: What should I do if I have a dispute with a neighbour?
A: It’s best to try and resolve disputes amicably through direct communication (in a neighbourly fashion). If this doesn’t work, you can bring the issue to the attention of the body corporate or HOA, which can mediate. Should it be necessary, they can refer you to CSOS (the Community Scheme Ombud Service).
Q: How are decisions made in my community?
A: Decisions are typically made through a voting process during meetings of the body corporate or HOA. Each owner usually has one vote per unit owned (or a weighted vote), and decisions are made based on majority rule.
Q: What is the CSOS levy?
A: The CSOS levy is a fee collected by a community scheme from the owners and paid to the Community Schemes Ombud Service (CSOS) as mandated by the Community Schemes Ombud Service Act. Each scheme must collect the prescribed CSOS levy from every owner and remit it to the CSOS quarterly.
Q: What do levies cover?
A: Levies typically cover a range of expenses necessary for the upkeep and management of the scheme. These can include:
- - Maintenance and repairs of common property
- - Security services and systems
- - Insurance for the building and common areas
- - Utilities for common areas (e.g., water and electricity)
- - Administrative costs, including banking fees, management fees and accounting services
- - Contributions to a reserve fund for future capital expenses
Disclaimer: Please note that the information provided in this article is for general informational purposes only. It is not intended to be comprehensive, provide legal advice, or assist Community Schemes in fulfilling their fiduciary duties.
Solver Property Services is one of the leading property managing agent companies in South Africa, successfully managing community schemes since 2005. Whether it’s high-rise sectional title buildings, Homeowners Associations, share blocks, or apartments, we handle it all. For more information, please contact us at 010 822 2882. Solver Property Services has a team of experienced Property Managers / Managing Agents ready to assist you.
