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A guide on body corporates and sectional title schemes for landlords and tenants

Private Property South Africa
Private Property Reporter |
A guide on body corporates and sectional title schemes for landlords and tenants

Navigating Sectional Title schemes and conduct rules in South Africa

Sectional title schemes come with specific rules and regulations that both tenants and landlords need to follow. As sectional title living grows in popularity due to buy-to-let investments and short-term rentals, it's essential to understand the legal framework that governs behavior within these complexes. Below, we explore the responsibilities of tenants and landlords, and provide answers to common questions related to sectional title schemes.


Tenant responsibilities in Sectional Title Schemes

Living in a sectional title scheme means tenants must adhere to a set of conduct rules established by the body corporate. These rules ensure that all occupants, including short-term renters and long-term tenants, contribute to a peaceful and orderly living environment.

What Are Sectional Title Scheme conduct rules?

Conduct rules are regulations designed by the body corporate to manage the behavior of tenants and owners within the complex. These rules cover a range of issues, from noise control to parking regulations, and tenants are legally required to follow them for the duration of their stay. Importantly, property owners must provide tenants with a copy of the rules before they move in to ensure they understand their obligations.

Key legal framework: Sectional Titles Schemes Management Act (STSMA)

The Sectional Titles Schemes Management Act (STSMA) and the Prescribed Management Rules (PMR) govern sectional title living. According to PMR 3(2), property owners must ensure that their tenants, guests, and other occupants comply with the scheme’s conduct rules. This includes behavior within exclusive-use areas, such as parking spaces and communal gardens.


Landlord responsibilities in Sectional Title Schemes

As a landlord, your responsibility extends beyond merely collecting rent. The STSMA holds landlords accountable for any breaches of the conduct rules made by their tenants. Below are key landlord responsibilities in sectional title schemes.

Handling tenant misconduct

If a tenant violates the conduct rules, the body corporate will issue fines or penalties, which are levied against the landlord. The landlord must then recover these costs from the tenant. It's essential for landlords to educate their tenants about these rules to prevent any disputes or penalties.

Can a tenant be charged for levies?

While tenants cannot be charged directly for levies, they can be invoiced for additional services such as utilities and garden maintenance if specified in the lease. However, the landlord remains ultimately responsible for all levy payments to the body corporate.

Key aspects of the Sectional Titles Schemes Management Act

(Act No. 8 of 2011) and its associated regulations revolve around the governance and management of sectional title schemes, ensuring clear guidelines for the management, maintenance, and administration of shared properties. Some of the important regulations include:

  1. Establishment of a Body Corporate: Sectional title schemes must establish a body corporate to oversee and manage the property. The body corporate is responsible for maintaining common property, enforcing rules, and managing finances.

  2. Management rules: These are prescribed under section 10(2)(a) and dictate the responsibilities of owners, trustees, and the body corporate itself. These rules cover areas such as the appointment of managing agents, maintenance duties, and obligations of trustees.

  3. Reserve fund contributions: Bodies corporate must maintain reserve funds to cover unexpected costs and future maintenance. Specific guidelines dictate the percentage of contributions that must be set aside based on the reserve fund’s status at the end of the previous financial year.

  4. Insurance requirements: Bodies corporate must insure the common property against risks like fire, storm, and civil disturbances. Additional risks such as lightning and flooding can also be covered.

  5. Conduct rules: These regulate the behavior of owners and occupiers in relation to the use of common property, including the management of pets, disposal of waste, and parking.

These regulations ensure that sectional title schemes are managed efficiently, protecting the rights and investments of owners while promoting a harmonious living environment.


Dispute resolution: Complaints in Sectional Title Schemes

Living in a sectional title property often involves dealing with communal issues such as noise, parking disputes, and property maintenance. Below are some common questions about handling disputes between tenants and the body corporate:

Can a body corporate declare a dispute with a tenant?

  • No, disputes must be addressed to the property owner, who is responsible for taking appropriate action.

Can a tenant be evicted if their landlord stops paying levies?

  • No, the tenant is entitled to occupy the premises as long as their rental payments are up to date.

What happens if a tenant refuses to pay levies?

  • The landlord remains liable for the levies, but the tenant can be held responsible for utility charges, as outlined in the lease agreement.

Conclusion

In 2024, both tenants and landlords in South Africa must comply with the conduct rules established by sectional title schemes. Property owners are responsible for ensuring their tenants understand and follow these rules, while tenants must take responsibility for their own behavior and that of their visitors. By following these guidelines, landlords and tenants can contribute to a harmonious living environment and avoid legal complications or fines from the body corporate.

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