The Sectional Titles Schemes Management Act (STSMA) is South African legislation that governs the management and governance of sectional title schemes, ensuring the rights and responsibilities of owners and executives are clearly defined. It came into effect on October 7, 2016. Key aspects include the establishment of bodies corporate, management rules, and the establishment of a Sectional Titles Schemes Management Advisory Council.

The need for the STSMA arose from the complex nature of managing communal living environments where ownership is divided into individual sections and shared common areas. By separating governance rules from the Sectional Titles Act itself, the legislature intended to create clearer, more effective operational rules for sectional title owners and administrators.

What Is a Sectional Title Scheme?

Sectional title ownership is a form of property ownership where a person owns a section (such as an apartment or townhouse) in a larger building or development, together with a share in the common property. What is a sectional title scheme often confuses new property buyers, as it differs from full-title ownership where the owner holds title to the land itself.

A sectional title scheme allows multiple owners to share responsibilities for maintenance, security, and management of the shared spaces while retaining exclusive rights to their private sections. The structure requires cooperative living and effective management through the body corporate and its rules.

Key Provisions under the Sectional Title Schemes Management Act

Key provisions and objectives of the STSMA include:

• Establishment of Bodies Corporate – Mandates the creation of bodies corporate, which are legal entities composed of registered unit owners, responsible for managing and maintaining communal areas within a sectional title scheme;
• Management Rules – Outlines the creation and application of rules for the management and regulation of sectional title schemes;
• Sectional Titles Schemes Management Advisory Council – Provides for the establishment of a council to advise on matters related to the management and administration of sectional title schemes;
• Reserve Funds – Schemes are required to establish a reserve fund, typically 25% of the budgeted annual levy, to cover costs like maintenance, repairs, management, and other expenses;
• Proxy Limits – Places limits on the number of proxies a person can hold, preventing undue influence in scheme decision-making;
• Exclusive Use Areas (EUAs) – Owners may have rights to the exclusive use of certain parts of the scheme's common property, such as parking bays or balconies, which are often outlined in the sectional plan or scheme rules;
• Managing Agents – Outlines the responsibilities of managing agents, who may be appointed by the body corporate to manage the scheme's finances and operations;
• Dispute Resolution – Provides mechanisms for resolving disputes, including the possibility of appealing to the Chief Ombud for relief when a body corporate or owner is unable to obtain a special or unanimous resolution;
• Conduct Rules – Owners are obligated to use their sections and common property without causing nuisance and to use the common property reasonably, without interfering with the rights of other owners; and
• Levies – All owners in a sectional title scheme are required to pay levies to the body corporate to cover the expenses of the common property.

These sectional title schemes management act regulations provide a solid framework for financial management, behavioural governance, and collective decision-making within sectional title schemes. Owners must be aware that the successful management of a scheme hinges not only on compliance with the STSMA but also on active participation in the body corporate's affairs.

The Body Corporate and Its Role under the STSMA

The body corporate is responsible for maintaining common property, enforcing rules, and managing the scheme's finances. Specific regulations related to the body corporate are found in section 10 of the STSMA, which grants it the power to make management and conduct rules.

Key sections of the STSMA relating to the body corporate:

• Section 10 – Gives the body corporate the power to make management and conduct rules, covering areas like managing agents, maintenance, and trustee obligations;
• Section 10(2)(a) – Specifies that management rules dictate the responsibilities of owners, trustees, and the body corporate itself;
• Section 10(2)(b) – Provides that conduct rules may be added, amended, or removed with a special resolution of the members;
• Section 13 – Obliges owners to maintain their sections in good repair and pay levies;
• Section 37 – Requires the body corporate to establish an administrative fund and a reserve fund; and
• Section 19 – States that rules made by the body corporate are considered laws for the scheme.

The sectional title body corporate rules form the backbone of day-to-day living in the scheme. They regulate owner behaviour, trustee duties, maintenance standards, and financial management. The body corporate wields significant authority but must operate within the limitations of the STSMA and the scheme's registered rules.

Managing Agents in Sectional Title Schemes

The STSMA primarily addresses the management of sectional title schemes, not the specific role of managing agents. While the STSMA establishes bodies corporate to manage schemes, it doesn't detail the responsibilities or requirements of managing agents, which are often specified in the scheme's rules or a separate contract.

Managing agents typically provide administrative support, financial management, and operational oversight to assist the trustees of the body corporate. Selecting a competent managing agent can significantly improve a scheme’s financial health and compliance with statutory obligations.

Conduct Rules under the Sectional Titles Schemes Management Act

The STSMA outlines conduct rules, also known as prescribed conduct rules (PCRs), to regulate the behaviour of owners and occupiers in sectional title schemes. These rules govern the use of sections, exclusive use areas, and common property to prevent nuisance and ensure fair enjoyment for all residents. Conduct rules often address issues like pets, parking, and general conduct.

The sectional title management act provides for default PCRs, but schemes can amend or add to these rules to suit their specific needs. Changes to PCRs require a special general meeting, a quorum, and a 75% vote in favour. Approved changes must be submitted to the Community Schemes Ombud Service (CSOS) for review and approval.

Tailored conduct rules allow sectional title communities to balance flexibility with discipline. They are essential for maintaining a harmonious living environment while protecting individual and communal rights.

Consult an Experienced Property Lawyer for Sectional Title Matters

VDM Attorneys are qualified property law attorneys with over 35 years’ experience in conveyancing, litigation and compliance. Whether you are selling property, buying property or drafting or amending PCRs, we can provide you with expert legal guidance and service.

Engaging with one of our property lawyers ensures that your rights and obligations in a sectional title scheme are clearly understood and protected. Whether you are dealing with disputes, amending rules, or navigating levy contributions, expert advice can make a critical difference to your experience and investment success.