Monday, June 6, 2011

Strata Law Changes in South Africa


South Africa has approximately 45,000 sectional title buildings and 800,000 apartments. 

More and more are being built fast to deal with massive housing shortages (like everywhere else) so things need to be updated and adapted to deal with the challenges that presents.  And as we all know, that means law reforms.

So what’s changing in South African strata laws?

Firstly, sectional title laws are being changed.  The existing law, the Sectional Titles Act 1986, is being split so that the development and subdivision provisions stay there and all management and operation matters are moved into a new Act.  The new act simplifies the language so more people can understand it, is reorganised so it’s more logical and has new provisions covering lot boundaries, levies, exclusive use rights and more.  

You can find more information on these changes at Paddocks Press in a recent newsletter.

And, here are links to the Sectional Titles Act and the Sectional Titles Bill.

Secondly, a new structure is being established for an Ombudsman for sectional title under a proposed Community Scheme Ombud Service Bill and Commissioner of Sectional Title Schemes who will –
  • Provide a dispute resolution service with national reach for community schemes
  • Train conciliators, adjudicators and other Service employees
  • Take custody of, control the quality of and provide public access to all sectional titles scheme governance documentation and other such documentation determined by the minister
  • Promote good governance of community schemes and monitor that governance
  • Provide education, information, documentation and other services to raise the awareness of owners, occupiers, executive committees and others who have rights and obligations in community schemes

It’s a massive change in the way strata is run in South Africa.

Thirdly, the regulation of sectional title managers is being upscaled by the Estate Agents Administration Board so the by 31 December 2011 sectional title managers must satisfy the EAAB that they have education qualification to NTQ4 if they work for a master licensed manager or to NTQ5 to be a master licensed manager.  And, from 2012 continuing professional development and education requirements apply to sectional title managers.

A range of exemptions and dispensations are available and extra time is available in some cases.  Plus there’s also an amnesty available to people operating unlawfully as sectional title managers up to 31 July 2011 to become compliant over the next 18 months.

That’s a lot of change in this year in South Africa and it’s going to challenge everyone in strata title. So that by the end of 2012 sectional title will be very different.

So, let’s watch our South African colleagues improve strata title in their corner of the world.


Francesco …

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