Answers to Regularly Asked Questions

What is the difference between a section and a unit?

Section: The internal space of the unit consisting of the windows, doors, ceiling and floors.
Unit: A Section plus an undivided share in common Property

What is a Body Corporate?

The legal entity made up of all the owners of the Sectional Title Scheme (every owner is a member of the Body Corporate).

What is PQ?

Participation Quota (PQ) is the formula used to calculate each owner’s contribution in a Body Corporate, as well as determine the owner’s undivided share of the common property and the value of his / her vote at general meetings. A 90m² section in a Scheme with an overall size of 2250m² (90 ÷ 2250 = 0.0400).

What should be listed in 10 year maintenance, repair & replacement plan?

The plan is to list the major capital items, their current state, their projected lifespan and the estimated cost of repair or maintenance of the item.

What is the required notice period for the Annual General Meeting and to whom must it be send?

14 Days notice must be given to all owners, bond holders and the Managing Agent. (STSM Regulation 15 (1))

What is a Special General Meeting (SGM)?

All meetings other than the Annual General Meeting are Special General Meetings. (STSM Regulation 17 (3))

When is a 30 day AGM notice period required?

30 Days’ notice must be given if a special resolution or unanimous resolution is on the agenda. (STSM Act 6(2))

What is a Unanimous Resolution?
“unanimous resolution” means a resolution-
(a) passed unanimously by all the members of the body corporate at a meeting at which-
(i) at least 80% calculated both in value and in number, of the votes of all the members of a body corporate are present or represented; and
(ii) all the members who cast their votes do so in favour of the resolution; or
(b) agreed to in writing by all the members of the body corporate.

Examples requiring a unanimous resolution: Loans made from body corporate funds, changing Management Rules, leasing or selling part of the common property.

What is a Quorum?

The number of people required (in person or by proxy) to be present before a meeting commences and must remain present for the duration of the meeting.

What is the Quorum required for AGMs & SGMs (including where a special resolution will be taken)?

(a) Schemes with less than 4 primary sections – two-thirds of total votes of members in value.
(b) Schemes with more than 4 sections one third (33.3%) of the total votes of members in value.

provided that at least two persons must be present unless all the sections in the scheme are registered in the name of one person, and provided further that in calculating the value of votes required to constitute a quorum, the value of votes of the developer must not be taken into account. (STSM Regulation 19 (2))

What happens if there is no Quorum at an AGM or SGM?

If within 30 minutes from the time appointed for a general meeting a quorum is not present, the meeting stands adjourned to the same day in the next week at the same place and time; provided that if on the day to which the meeting is adjourned a quorum as described in sub-rule (2) is not present within 30 minutes from the time appointed for the meeting, the members entitled to vote and present in person or by proxy constitute a quorum. (STSM Regulation 19(4))

What is a Proxy?

A proxy is a person who is designated by the owner to represent that individual at a meeting. The designated person may speak and vote on behalf of the owner. A person may not act as a proxy for more than 2 other members. A proxy form must be completed and delivered to the Managing Agent at least 48 hours prior to the meeting, or handed to the Chairman before or at the start of the meeting. A proxy cannot be the Managing Agent, or an employee of the Managing Agent or Body Corporate, unless he/she is a member.

Who is the CSOS and when did they come into operation?

The Community Schemes Ombud Service (The CSOS) is an alternative dispute resolution body designed to resolve administrative disputes in all types of community schemes, including sectional title schemes and home owners associations. The CSOS came into operation during October 2016.

What do Levy-Standard contributions pay for?

The Standard Levy Contributions must cover the estimated annual operation costs –
(i) for the repair, maintenance, management and administration of the common property (including reasonable provision for future maintenance and repairs);
(ii) for the payment of rates and taxes and other local municipality charges for the supply of electricity, gas, water, fuel and sanitary or other services to the building or land;
(iii) for the payment of any insurance premiums relating to the building or land; and
(iv) for the discharge of any duty or fulfilment of any other obligation of the body corporate; (STSM Act (3)(1)(a))

What does Levy-Maintenance contributions pay for?

The Maintenance Levy must cover the items budgeted for in the 10 Year Maintenance Plan – (b) to establish and maintain a reserve fund in such amounts as are reasonably sufficient to cover the cost of future maintenance and repair of the common property but not less than such amounts as may be prescribed by the Minister; (STSM Act (3)(1)(b))

What is a Homeowners Association?

A residential housing estate consisting of full title homes in a secure/walled estate.

What is contained in a MOI?

The MOI contains the rules that describe the powers and responsibilities of the Directors and deal with the ways in which the Directors manage the Homeowners Association. The MOI also contains the conduct rules of the estate.

When can one change a MOI and where must it be filed?

The Memorandum of Incorporation may only be changed or added to, at an annual or special general meeting. The new Articles of Association / Memorandum of Incorporation must be filed with CIPC (Companies and Intellectual Property Commission).

What is Domestic Effluent and who determines the rate?

Domestic Effluent is a charge levied by the municipality for the removal of wastewater. The rate is per unit and is not determined by the size of the unit.

What does insurance cover?

The structure of the unit, fixtures and fittings as well as the hot water system. All moveable items (furniture, household items) would need to be covered by your household insurance.

What should I do if I suspect my geyser has burst?

If the incident has occurred between office hours (08:00 – 16:00) please email or contact our offices on 087 006 0011 for assistance. If the incident has occurred after hours, please contact our 24-Hour call centre on 087 006 0011 for assistance.

I do not have electricity / water in my unit but the units around me do – who do I contact?

Please contact an electrician/plumber to investigate the cause of the electricity/water supply. Should the cause be within the unit, the costs involved will be for your account.