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?
What is PQ?
What should be listed in 10 year maintenance, repair & replacement plan?
What is the required notice period for the Annual General Meeting and to whom must it be send?
What is a Special General Meeting (SGM)?
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?
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?
What is a Proxy?
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?
What is contained in a MOI?
When can one change a MOI and where must it be filed?
What is Domestic Effluent and who determines the rate?
What does insurance cover?
What should I do if I suspect my geyser has burst?
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