Page 32 - Nexia SAB&T Property & Tax Guide 2022

SECTIONAL TITLE AND COMMUNITY SCHEMES

The Sectional Titles Schemes Management Act (8 of 2011) or “STSMA” and The Community
Schemes Ombud Service Act (9 of 2011), or “CSOSA”, and regulations aim primarily to
protect owners in sectional title and community schemes and provide for management
procedures and dispute resolution processes through the Ombud Service.
Attorneys, Estate Agents, Trustees of Sectional Title Schemes, Directors of Share Block
Companies, Members of the Management Associations of housing schemes for retired
persons, Owners, Developers and Managing Agents are required to know the critical aspects
of the CSOSA. Trustees, Owners, Developers and Managing agents of Sectional Title Schemes
are required to have knowledge and apply the provisions of the STSMA.
THE SECTIONAL TITLES SCHEMES MANAGEMENT ACT AND REGULATIONS
The following persons/groups of persons involved in Sectional Title Schemes are defined in
the STSMA as follows:
The Body Corporate
Developer A person who is the registered owner of land situated within the area of
jurisdiction of a local municipality, on which is situated or be erected a building
or buildings which he or she has divided or proposes to divide into two or more
sections in terms of a scheme.
Owner In relation to a unit or a section or an undivided share in the common property
forming part of such unit, means the person in whose name the unit is
registered at a deeds registry in terms of the Sectional Titles Act.
Trustee All the members (owners) are trustees from the establishment of the body
corporate until the end of the first general meeting.
The executives of a community scheme, including the body corporate of a Sectional Title
Scheme, may appoint Managing Agents to provide the scheme with management services to
the community scheme for reward.

THE BODY CORPORATE
The body corporate is automatically established as soon as any person (other than the
developer) becomes an owner of a unit in the scheme. At such time the developer and such
persons are the members of the body corporate, and any person who thereafter becomes an
owner of a unit becomes a member. The developer ceases to be a member when he or she
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