Governance Tools in Community Schemes: Resolutions, Sectional Plans & Exclusive Use
Effective governance in a community scheme depends on using the right legal tools. From passing resolutions to reading sectional plans and managing exclusive-use areas, these processes ensure fair decision-making and protect the rights of all members.
At ANGOR Property Specialists, we help Scheme Executives navigate these governance tools in compliance with the Sectional Titles Schemes Management Act (STSMA), the Community Schemes Ombud Service Act (CSOS Act), and other applicable laws.
Types of Resolutions
Decisions in a community scheme are not all made the same way – different matters require different levels of agreement.
Ordinary Resolution
- Voting Requirement – More than 50% of votes cast must be in favour, with a quorum of 33.33% of owners (by value/PQ) present or represented at the meeting.
- Voting Requirement – Round Robin Vote – More than 50% of all owners must vote in favour of the resolution.
- Scope – Routine matters such as electing Trustees, approving the annual budget, or adopting financial statements.
Special Resolution
- Voting Requirement – At least 75% of votes cast in favour, with a quorum of 33.33% of owners (by value/PQ) present or represented at the meeting.
- Voting Requirement – Round Robin Vote – At least 75% of all owners must vote in favour of the resolution.
- Scope – Significant decisions such as amending conduct rules or making material changes to common property.
Unanimous Resolution
- Voting Requirement – All owners must agree, with a quorum of 80% of owners (by value/PQ) present or represented at the meeting.
- Voting Requirement – Round Robin Vote – All owners must vote in favour of the resolution.
- Scope – Critical matters such as selling common property or amending management rules.
When to Pass Different Resolutions
Linking the right decision to the correct resolution type is essential for compliance. Examples:
- Ordinary Resolution – Approving next year’s levy budget.
- Special Resolution – Approving the installation of solar panels on common property.
- Unanimous Resolution – Selling part of the common property to a private buyer.
Making a decision under the wrong resolution type can result in it being invalidated if challenged.
Sectional Title Basics: What You Own
In a sectional title scheme, ownership is split into:
- Your Section – The unit registered in your name on the sectional plan.
- Common Property – Shared areas co-owned by all members (driveways, gardens, roofs, etc.).
- Exclusive-Use Areas – Common property designated for one owner’s use.
The median line marks the boundary between your section and adjacent sections or common property, typically halfway through shared walls, floors, or ceilings.
Read this article for more information: https://theadvisory.co.za/2024/10/02/the-median-line-sectional-title/
Reading the Sectional Plan
A sectional plan is a registered diagram showing:
- The boundaries of each section (solid line)
- The extent of common property (CP and/or a broken / dotted line)
- Any exclusive-use areas
Knowing how to read this plan is crucial for understanding maintenance responsibilities, rights of access, and voting entitlements.
Read this article for more information: https://theadvisory.co.za/2023/01/11/interpreting-sectional-plans/
Allocating Exclusive Use
Exclusive-use rights can be granted in two ways:
- Registered Exclusive Use – Recorded in the Deeds Office, permanently linked to the unit, and transferred with ownership.
- Rule-Based Exclusive Use – Created by amending the scheme’s conduct or management rules and can be changed with a special resolution.
Even if you have exclusive use, maintenance responsibilities may still rest with the Body Corporate, which can recover the costs from the owner.
Conclusion
Governance tools like resolutions, sectional plans, and exclusive-use allocations are the backbone of lawful and fair decision-making in community schemes. Scheme Executives who understand and apply these tools correctly protect the scheme from disputes and ensure smooth, compliant operations.
With ANGOR Property Specialists as your partner, you can be confident every decision follows the correct legal process—safeguarding both your community and your investment.
The Management Team in a Sectional Title Scheme: Roles and Responsibilities
The Trustee Toolkit: What Every Trustee Should Have Access To