CAPE ISSUE 16... JUNE 2006... 12 000 COPIES POSTED TO CHAIRPERSONS & SUBSCRIBERS 00 1. R1 Making Sectional Title work since 2000 Proprietary rights www.propell.co.za Pg 7. Bodies Corporate News is provided to empower chairpersons / trustees, by enabling them to maximise the property investment of owners in a complex. Our newsletter needs to reach chairpersons or trustees as we offer them alternate copies free. If you received Bodies Corporate News by chance please pass it on to your Body Corporate. Understanding Sectional Title Concepts The Sectional Plan Most of us think of a sectional plan as a plans and will approve them if detailed document, that builders use as they conform to all the building their construction blueprint. A document regulations (and other that when followed meticulously by regulations) that exist at the constructors will result in a physical time. This process has nothing structure that closely resembles the to do with the procedure of pictures of the proposed development, registering, forming, or initiating that we saw in the weekend property a Sectional Title Scheme. newspapers. This is not the case, and Sectional Plans are only one can be forgiven for thinking that a prepared when a structure has building plan, and a sectional title plan been constructed to the extent are similar. A building plan is prepared by that distances between walls, an architect and is detailed to the extent and other aspects of the final that it facilitates the construction of a structure are capable of being structure. These plans are submitted to measured. Only then can a ! a municipality for Sectional Plan be prepared by approval prior to the a Land Surveyor or Architect. construction of a On the right is an example of a building. The component of a full set of municipal experts building plans. consider the building If you are a The Surveyor chair / trustee IN THIS EDITION General approves and have not Ask the editor Sectional Plans. yet confirmed Pg 3. These plans are your contact Bob Gauld advises submitted by the details, Pg 4 - 5. developer and simply show Sectional Title ownership categories that Ticking time bombs the basic physical details of make logical sense with regard to space please do so in complexes the buildings to the extent that utilization, allocation of space, and their in order to Pg 6. capability to be individually sectioned off, remain on our they can be separated, Imposing fines on owners measured, and identified by and owned, or shared in a Sectional Title mailing-list. Pg 8. scheme. Continued on Page 2 Permanent personnel on site (No subcontractors) Page 3 ASK THE EDITOR Rob will answer your questions Numerous requests for information are garden unit to make arrangements to lead consider amendments. If by special received. Regrettably we can only the water away into say a false drain. resolution members agree to amend the answer several in this regular column. I would like your input on two matters . A 1 An owner is responsible to maintain his own exclusive use area. We refer conduct rules (annexure 9) then you will lodge these amended rules at the deeds office and they will become your new set of Q 1Trees in the garden units have grown so high that the roots are to the Solidatus Case, Management Rule 70(B) and Section 44(1)C. legal rules. You do not pay to register causing some walls to break away/cracking. Is it the responsibility of the Body Corporate or the respective A 2 Water drainage is always a problem when there are very heavy cloud bursts - that’s life. Is the drainage a problem, rules, though it will cost you if you want to have them drafted professionally. owners to have these trees removed and the walls repaired or replaced within their registered exclusive use gardens. under normal rainy conditions? If so, then the Body Corporate should attend to the matter as the Body Corporate is Q I own a duplex in a small block. Each unit has a garden that is separated by an outside dividing wall. Q 2Water from the down pipes of a unit above the garden unit is causing flooding in the garden unit due to responsible for the down pipes and general drainage, however we need to consider a second scenario. We assume that the Recently my neighbour constructed an additional room onto her back garden using the garden walls on both sides to heavy rains. Again is it the responsibility of original builder had, or should have support the roof. The overhang of the roof the Body Corporate or the owner of the considered, and allowed for, adequate overlaps onto my side of the wall by +/- 20 drainage from the gutter outwards. If the cm and is at a height that affects my view. owner of the exclusive use right has re- She has also placed windows on the Subcribe anually to landscaped areas of his garden and upset dividing wall, within one metre of my BODIES CORPORATE NEWS the original water drainage pattern, then bedroom window, which can affect my the owner of the exclusive use right must privacy. The above construction went attend to the problem. ahead without plans from the municipality ONLY R88.00, ( OR R56.00 FOR TRUSTEES) or without approval from the body ADVICE FROM SECTIONAL TITLE EXPERTS DATA BANK OF SECTIONAL TITLE INFORMATION DISCOUNTED FOR SUBSCRIBERS Q I am the owner of a section in a small block of flats. I am one of three trustees and we have no major corporate. After a year this matter has not been resolved. Is there anything that I can do about the above? problems. We have for many years run our Body Corps - Name: Your Name or Co: Address: affairs very informally. The trustees have from time to time framed and amended House Rules to suit the requirements of the A Wow! Your neighbour is in blatant contravention of the rules. You have provided little information for me to work block, and enforced these where with, e.g, is the land upon which your Code: necessary, but these have never been neighbour added the extra room common Tel(H): ( ) officially registered. property or is it an exclusive use area? You Tel(B): ( ) Are the Rules that were registered with the say the matter is unresolved. What have Registrar of Deeds on registration of the your trustees done to try and resolve the Fax: ( ) Sectional Title plan in 1984 automatically situation? Is the construction of a Cell: amended and updated by the current permanent nature or not? (Is there a Email: Management and Conduct Rules? We foundation and front entrance constructed Status: CHAIRMAN OWNER want to avoid the expense of registering with brick and cement?) The trustees PLEASE TRUSTEE TENANT our existing Rules unless essential. should have been aware of the illegal TICK structure and stopped its progress by MANAGING AGENT Payment Choices Cheque enclosed A As from June 1988 schemes governed by the old schedule 1 and 2 rules of the old Act automatically relinquished these obtaining a court interdict - what happened? If the trustees failed to see the extension, they should have given the Postal order enclosed culprit 30 days to demolish the structure and became subject to the rules contained Made in favour of Bodies Corporate News, and in annexure 8 & 9 of the new Act. There once they were aware of its existence. If posted to PO Box 1530, Durbanville 7551 was a proviso if the old rules were this action failed, the trustees should have Direct Deposit or bank transfer to our acc i.e amended, so a visit to your local deeds approached a legal professional to take the Nedbank, Chq acc registry is important. Nonetheless, you are matter to court. If the Body Corporate does Acc name: Bodies Corporate News definitely subject to annexure 8 & 9 rules as not have the finances, then a special levy Acc no: 1232112755. Branch code: 123209 no amendments to schedule 1 & 2 rules should be raised to finance the legal action. include a reference when making payment can conflict with annexure 8 & 9 rules. You Action must be taken to avoid other owners need to compare these legal rules with building illegal structures. For info email email@example.com or Ph 021 979 5598 your old house rules, then perhaps Page 4 BCN pays tribute to Bob Gauld by publishing a series of his articles Bob Gauld was widely acknowledged as the doyen of Sectional Title in South Africa. He unselfishly dedicated his life to the upliftment of the Sectional Title Industry. Unscrambling eggs “A new owner has just obtained a copy of body corporate to allocate values to take our Sectional Title plan and discovered the place of participation quotas for the that we have been using incorrect calculation of levies and votes. The participation quotas”, said a trustee. “One nomination is made by amending the of the trustees said that they were rules and requires the written consent of adjusted several years ago to make them all owners adversely affected by the 'more fair', but the new owner has stirred changes. it up among other owners who are demanding that we revert to the proper If this scheme is not subject to values set participation quotas. What should we under section 32(4), the body corporate charging do?” must immediately revert to the correct owners equal participation quotas. A further difficulty amounts; others have repaired common Unless the 'adjustments' were done by may face the body corporate. Owners, property and charged the owners nominating values under section 32(4) of who as a result of the illegal calculations affected by the repairs instead of the Sectional Titles Act, you will have to of levies have been over-charged, may allocating costs among all the owners. revert to the participation quotas shown even demand refunds. Tr u s t e e s s o m e t i m e s a d j u s t t h e on the approved sectional plan. Please calculation method to allow for check the rules as filed with the Registrar As section 37(1)(d) of the Act and extensions that have been carried out to of Deeds. management rule 31(1) require levies sections without a corresponding and special levies to be calculated amendment of the sectional plan and in N o m i n a t e d v a l u e s , w h i c h w e r e according to participation quotas or contravention to section 24 of the Act. All discussed in previous articles, allow a nominated values, these owners will of these contravene the Act and rules and have a very strong cannot be condoned. case. Neither the Act nor the rules allow Difficult though these problems may be, body corporate mentorship any discretion in the they are insignificant compared to others method used to that have been reported. Recently, I have Sectional Title Management determine levies. heard of two separate bodies corporate that are being run as one and of a property and commercial management There are many scheme comprising two buildings that property and commercial sales and rentals similar cases on are running as two separate bodies record. Bodies corporate. In both cases, they have been corporate have running that way since establishment. 021 975 4656 firstname.lastname@example.org Negatively affected owners are now Craig Coetzee raised special levies 072 229 8842 088 021 975 4656 PO Box 377 for improvements forcing the trustees to correct the Cape Gate problems. Here are three examples, 7562 and repairs by Continued on next page INDAWO Help line is still available to subscribers Tel: 021 946 3371 and chairpersons Fax: 021 946 3366 The Bodies Corp News Editor email@example.com is unfortunately compelled to limit the time spent on the Help line as this activity seriously impacts on his prime function, i.e. the production of Bodies Corporate News. The general public will no longer be able to use this facility. ACKNOWLEDGMENT THIS PUBLICATION ACKNOWLEDGES CONTRIBUTIONS MADE TO THE SECTIONAL TITLE CAUSE BY TERTIUS M A R E E, G R A H A M PA D D O C K, MARINA CONSTAS, ALASTAIR LOMAS- Painting & Building & Waterproofing & WALKER, AND THE LATE BOB GOULD. THEIR PUBLISHED WORK PROVIDES US Decorating Maintenance Joint Sealing WITH ADDITIONAL INSIGHT. Page 5 BCN pays tribute to Bob Gauld by publishing a series of his articles Bob Gauld was widely acknowledged as the doyen of Sectional Title in South Africa. He unselfishly dedicated his life to the upliftment of the Sectional Title Industry. Continued from previous page · “Mews 1” and “Mews 2” are on that security and other common property Owners' Association that are being run as adjacent stands of similar size and costs will also be higher in Mews 2. a single entity. Sectional and freehold rateable value. They are established as Correctly calculated, the present levies in ownership have very little in common and separate sectional schemes but the Mews 2 should be a lot higher than in cannot run as one. Anybody want to fence between the two was never erected Mews 1. unscramble this one? and they are run as one. The former comprises forty units; the latter has · A high-rise block of flats and a A trustee of another scheme has already twenty. Quite illegally, the total areas of all development of townhouses in separate warned me that I will be in serious trouble the sections were combined at inception buildings are built on the same stand and for making their scheme unmanageable. and so-called participation quotas were registered as a single scheme. The I've said it before shooting the calculated. Neither the Registrar of developer chose to run the flats and messenger is a national sport! If you don't Deeds nor the Surveyor General has any townhouses as separate developments. get an article next week, please send record of any sort of application having If the developer had established the flowers! been made to tie the schemes together. development as two separate schemes, it would have been lauded as a sensible Ladies, please ignore the next sentence Mews 2 has a section 25 right of decision. By not doing so, the developer it is for men only! “There are two ways that extension registered under which the created a situation that is almost a man can argue with a woman, but developer may return and extend the impossible to resolve. neither of them works.” (Thank you, Ti) scheme by constructing another twenty sections. Until then, the rates and taxes · Even components of the common property more bizarre is costs must be shared by the twenty the Sectional existing owners while their neighbours in Title body Mews 1 share the costs among forty corporate and owners. Independent budgets will show a H o m e New service for Western Cape readers ORDER YOUR SECTIONAL PLANS through Bodies Corporate News Simply email firstname.lastname@example.org and place your order Order the new Sectional Title Publication Demistifying Sectional Title Phone Lola on 011 622 3622 to order your copy for only R250.00 POWER MEASUREMENT We provide and install prepaid electricity meters nationwide We sell electricity to Sectional Title Schemes at no extra cost Now residents can manage their own electricity consumption No more meter reading costs! No more administrative errors! For more info visit the Sub Vending page on www.powermeasurement.co.za Phone 021 556 3810 or 083 306 2418 for the best energy solutions PEACE OF MIND FOR TRUSTEES PROFESSIONAL NATION WIDE ELECTRICITY SUPPLY AND MANAGEMENT Page 6 Ticking timebombs in many complexes This article by Bhavna Sooka, Bongani upgraded had fallen on deaf ears. The M t h e m b u a n d S h e r l i s s a Pe t e r s lifts are apparently nearly 30 years old, appeared in the Daily News on the 2nd said a staff member who refused to give of May 2006. his name. A lift company official who also Lifts in many of Durban and wanted to remain anonymous, said many Pietermaritzburg’s residential apartment lifts in the city need to be replaced. buildings are ticking timebombs waiting It costs between R400 000 and for tragedy to strike. R500 000 to replace a lift - a cost that A snap survey in the two cities many building owners and bodies revealed that there are many faulty lifts corporate find prohibitive. and residents report that lifts regularly eThekwini Infrastructure Committee break down with people stuck in them. chairman Nigel Gumede said the council The situation is so serious that the was aware of the problem and warned eThekwini Municipality is considering that council would soon take strict taking harsh action against building measures against those responsible for owners who fail to address the issue. lift repairs. Sayed Iqbal Mohamed, According to law, all lifts need a log chairman of the Organisation of Civic book and must be inspected at least once Rights, said that the problem of a month by a registered lift engineer. The unserviced and defective lifts in and around the city centre was a huge “caused waves”. situation was highlighted when a man fell In Pietermaritzburg, the state of lifts to his death from a lift at John Ross concern. “In one instance I know in Overport, a physically challenged person has also come under fire from residents House on Durban’s Victoria living in apartment complexes in the Embankment last week. The tragedy has to be carried up and down seven floors on a daily basis because the lifts in downtown central business district. was the second in the building in just over Rowena Pillay, who has lived in a two years. Residents said last weekend the building are not working. A number of buildings have lifts that are not large flat complex in Peter Kerchoff that the pleas for the machinery to be (Chapel) Street for the past three years, functioning at all and need to be serviced,” he said. said that she says a prayer every time Mohamed said the she enters the lift. Another resident in the maintenance costs for complex, who declined to be named, said lifts were usually built that lift maintenance in the building was into rental costs. “Part non-existent. “A few years ago a of the rent should be neighbour and two of his children were u s e d f o r t h e stuck in the lift for two hours. The lift maintenance and plunged four floors and then stopped upkeep of buildings. between floors where they were stuck for And this happens in another hour. Luckily, they all got out of it some instances. alright,” said the resident. He said the Certain landlords, complex management repaired the lift however, don’t use the then, but it has not been serviced since money to maintain the then and the alarm bell in the elevator had lifts in their buildings,” not functioned since he moved in 12 he said. He said years ago. The chairman of the complex tenants were often refused to comment. Practical, afraid to voice their concerns as they feared eviction if they Editor - I am sure that this problem is nationwide cost-effective financing & collection solutions “Taking South African Lift service to new heights” MR SPIKE PERIMETER SECURITY FOR ANY ARE YOUR RATES GOING UP AND......GETTING YOU DOWN? Electric fencing BODY CORPORATE We service, maintain and upgrade all makes of elevators and hoists. Security spikes We also install new elevators Razor wire LEVY PROBLEM and hoists. MEMBERS OF THE Birdspike LIFT ENGINEERING ASSOCIATION 0860 005050 Unit 2. Cnr. 1st & 4th Streets Montague Gardens, Cape Town 7441 0861 100 126 www.propell.co.za P.O. Box 25, Edgemead 7407 South Africa Tel: +27 21 551 7760 Fax: +27 21 551 7790 Making Sectional Title Work since 2000 Customer Services: 0860 102 668 e-mail: email@example.com www.mrspike.com Page 7 This article appeared in the Natal Mercury on the 28th of April 2006 I’m sorry, your prospective tenant is shady and unacceptable! BODIES CORPORATE NEWS PROVIDES TRUSTEES A DURBAN court has ordered the Body Corporate of a Durban block of flats to fraudulent references. Efficient screening, he said, was the only way that the standards of the WITH TRAINING compensate a flat owner for lost building could be upheld. rental after it deemed a prospective The body corporate denied tenant “shady and unacceptable” and refused to allow the family to liability, saying its rules applied to all and it had the discretion to decide AND move in. The decision this week, although if a tenant was in the best interests of the building. INFORMATION PACKAGES only made by the Small Claims Govender, on the advice of Court, has been described as Sayed-Iqbal Mohamed, Chairman AS DETAILED BELOW “ground breaking” in South Africa, of the Organisation of Civic Rights, and one that will force bodies corporate to review their took the matter to court and argued that, in terms of the constitution, Information Documents “screening” rules to ensure they are people had a right to adequate TO ORDER simply email firstname.lastname@example.org not contrary to the constitution. housing. PLEASE NOTE THAT IF YOU ORDER MULTIPLE DOCUMENTS, Sagaran Govender, and his wife Therusha, sued the body corporate IT MAY TAKE SEVERAL HOURS TO DOWNLOAD Ripple effect of Harbour View flats for the R9000 In order to receive information documents please view those rental they lost out on in March 2005 He said bodies corporate had no available as listed below, select the ones you want, and list the after the then chairman of the body right to screen tenants because a code numbers on your bank deposit slip in the reference corporate, Piet van Oudshoorn, tenant’s relationship was with the column so that we can dispatch the correct information to you. refused to allow a tenant to occupy a Some information packages comprise of several components owner or landlord of a unit, not with that make up the whole package. Some components are flat they own in the building. the body corporate. partially duplicated as they interface with several other The Govenders own and live in In law, he said, a tenant could not information packages. another flat in the building. be denied occupation. Only if a At the time Govender advertised tenant broke the house rules could a Fax proof of your payment to 086 621 6612 or 088 021 979 the flat, he decided to rent it to a body corporate seek eviction. 5598 or email to email@example.com in order that we can woman with two grown-up children. dispatch the relevant information documents to you. The court agreed with Govender The family went for “screening” in and awarded the damages claim. Account details as follows: accordance with the rules of the Commenting on the decision, Nedbank, Chq acc Acc name: Bodies Corporate body corporate. Mohamed said it would have a News He was never informed of the “ripple effect” throughout the Acc no: 1232112755. Branch code: 123209 outcome of the interview and only country. Branch Name: Business Southern Peninsula realised that the family had been “I understand the need for some Don't forget to include a reference when making “turned down” when he started measure of control. But one has to payment so that we can track your order. Eg: (M1), receiving calls from other balance that against the rights of (M3), (P5) prospective tenants. owners. Please note that the information documents are only He then wrote to the body “These rights are being violated - available via e-mail corporate, complaining about Van perhaps with good intentions - by M1 Understanding the basics - an introduction to Sectional Title Oudshoorn’s actions and asking for bodies corporate who take it upon M2 Buying into Sectional Title - purchase considerations compensation of one month’s rent. themselves to make rules, change M3 Owners and tenants - Duties and responsibilities According to the minutes of a rules and then impose them on M4 Common property and exclusive use areas trustees meeting held in January everyone else. M5 Trustees - Duties and responsibilities 2006, at which the issue was “This is indicative that their M6 The role of the Managing Agent discussed, Van Oudshoorn had powers are limited - and no rules can M7 Levy collection and financial management found that the tenant to be “totally override law and the constitution.” M8 Contentious issues in Sectional Title - extensions, leaks, etc unacceptable and shady” with P1 Conduct Rules - how to amend and example of amendment NEW SECTIONAL TITLE PUBLICATION P2 Management and Conduct rules with latest amendments P3 Complete Sectional Title Act - amended with Rules Just released by Tertius Maree in English P4 All articles that appeared in BCN - Aug 04 -Aug 05 P5 The AGM and 17 examples of documents used in Sectional Title “SECTIONAL TITLES ON TAP” R245.00 P6 Occupational Health and Safety - Examples of a contract between Contractor and Body Corporate when work is undertaken phone 021 979 5598 or email firstname.lastname@example.org excl The dispatch cost for all Modules (M) is R20.00 each. The dispatch cost for all Packages (P) is R50.00 except to order your copy now! P2 and P6 which are only R25.00 Imposing fines on owners By Tertius Maree The imposition of penalties or fines Section 35(1) of the Act states that a own witnesses. remains one of the most controversial body corporate shall be controlled and subjects in the sectional title context. managed by means of rules. If a body The trustees should then decide if the Some say it is not legal whilst others corporate makes special rules to owner is guilty of the contravention or argue that the trustees have the right impose fines there should be no not. If guilty, they may impose a fine, to impose fines in terms of section 38(j) reason why it cannot be enforced. The duly inform the owner of their decision, of the Sectional Titles Act which states only proviso to the aforementioned is the reasons therefore, and the amount that the body corporate may 'do all that the procedure must be clearly of the fine. things reasonably necessary for the defined and must comply with the enforcement of the rules'. constitutional requirement of a fair The members of the body corporate administrative hearing. should from time to time, by ordinary The State is not the only entity that may majority resolution at a general impose penalties, it is for example The owner concerned must be invited meeting, determine the amount of the possible to impose a 'private' or 'civil' to attend a meeting or hearing. The initial fine and every subsequent fine. penalty in a contract. Similarly, the meeting should be arranged as quickly members of a body corporate ought to as reasonably possible after the It is very important that the trustees be able to impose fines. alleged contravention. The notice sent adhere to the procedural requirements to the owner should be delivered by prescribed by the rules when imposing Even though it may be a tenant or hand or sent via registered post and a fine. guest who contravened a rule it is the should specify the alleged owner who is ultimately held contravention in clear and responsible in terms of Management unambiguous terms. The Rule 70 which states: purpose of arranging the meeting is to enable the owner 'It shall be the duty of the owner to to respond to the allegation ensure compliance with the rules by and evidence against him. his lessee or occupant, including Very importantly he must be employees, guests and any member afforded the right to cross- of his family, his lessee or occupant.' examine any witnesses. He must also be allowed to call his Contact: Email: email@example.com - tel. 021-886 9504 www.forbes-wp.co.za Forbes Waterproofing PO Box 5350 Unit 2, Propnet Park Tygervalley Modderdam Road 7535 Bellville 7530 · Finance can be arranged SPECIALIST SERVICE PROVIDER FREE QUOTATIONS Tel: 021 941 5049 Tel: 021 941 5000 Fax: 021 946 3349 / 3366 Fax: 021 946 3349 / 3366 BCN Information index 4Extra copies are posted FREE to non- by faxing details to 086 621 6612 on page 3 or ph Tony 021 979 5598 subscribing trustees in a complex . 4To contribute editorially or place ads or email firstname.lastname@example.org 4Owners who receive a copy of BCN simply email: email@example.com 4For professional legal advice ph 021 in error should pass it onto a trustee. 4For information and past issues visit 886 9504 (legal fees may apply) 4Chairmen, confirm your address and our website www.bcn.co.za 4Help line for Subscribers phone 086 receive future random issues FREE 4To subscribe, complete the form 757 7882 for advice (10am- 4:00pm) Whilst every effort has been made to ensure that the information published is accurate, the authors, publishers and printers take no responsibility for any loss or damage suffered by any person as a result of the reliance upon the information contained herein. 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