Prescribed Conduct Rules
Expert Legal Guidance on Sectional Title Rules
At VDM Attorneys, we provide comprehensive legal advice and assistance to Body Corporates, trustees, and individual owners on the interpretation, amendment, and enforcement of both Management and Conduct Rules.
In South African sectional title schemes, two distinct yet interconnected sets of rules govern the daily operation and communal living: the Management Rules and the Conduct Rules. These rules, prescribed by the Sectional Titles Schemes Management Act 8 of 2011 (STSMA), are fundamental to ensuring efficient administration and harmonious coexistence within the scheme.
Management Rules - The Governance Framework
Management Rules form the backbone of a sectional title scheme's administration and governance. They provide the blueprint for how the Body Corporate functions, makes decisions, and manages the scheme's financial health. These rules are contained in Annexure 1 of the STSMA.
Key aspects covered by the Management Rules include:
- Formation and Operation of the Body Corporate - Detailing the automatic establishment of the Body Corporate upon the scheme's registration and its powers and duties.
- Election and Powers of Trustees - Guidelines on how trustees are elected, their terms of office, duties, and responsibilities in managing the scheme's day-to-day affairs.
- Meetings and Decision-Making - Procedures for calling and conducting various meetings, such as Annual General Meetings (AGMs) and Special General Meetings (SGMs), ensuring transparency and owner participation in resolutions.
- Financial Management - A framework for the Body Corporate's financial responsibilities, including budgeting, determination and collection of levies, managing funds, and financial reporting to owners.
- Insurance Requirements - Directives on insuring the scheme's buildings and common property, determining their value, and handling insurance claims effectively.
The Management Rules ensure the Body Corporate operates efficiently, transparently, and in the best financial interests of all owners.
Conduct Rules: Promoting Harmonious Living
While Management Rules focus on governance, Conduct Rules (contained in Annexure 2 of the STSMA) regulate the behaviour of owners, occupiers, and their visitors within the scheme. Their primary aim is to foster peaceful coexistence, respect for shared spaces, and the overall good order of the scheme.
The STSMA provides a set of default Prescribed Conduct Rules (PCRs) that apply to all schemes. However, Body Corporates have the flexibility to amend or add to these rules via a special resolution of owners to suit the specific context and needs of their scheme, provided such amendments do not contradict the STSMA or other applicable laws.
Key areas typically covered by Conduct Rules include
- Keeping of Animals Regulations on the types, number, and behaviour of pets allowed, often requiring trustee consent. Special provisions are usually made for assistance animals.
- Noise and Disturbances Guidelines on acceptable noise levels, particularly during certain hours, to ensure the peaceful enjoyment of sections and common property by all residents.
- Use of Common Property Rules governing the use of shared amenities like gardens, swimming pools, clubhouses, driveways, and communal utility rooms, including operating hours, guest policies, and behaviour.
- Vehicles and Parking Regulations concerning parking bays (allocated, visitor, and general common property parking), vehicle maintenance, speed limits within the scheme, and penalties for non-compliance (e.g., clamping).
- Appearance of Sections and Exclusive Use Areas Rules on maintaining the external appearance of units, landscaping, and alterations or additions, often requiring Body Corporate approval to maintain the scheme's aesthetic and structural integrity. This can extend to details like curtain and blind colours visible from the outside.
- Refuse and Waste Disposal Guidelines for proper waste separation, disposal, and the placement and collection of refuse receptacles.
- Security and Access Regulations regarding access control systems, visitor entry, and general security protocols within the scheme.
- Tenant Responsibilities Provisions ensuring that owners leasing out their units inform their tenants of the scheme's rules and remain liable for their tenants' compliance and any penalties incurred.
- Damage to Common Property Prohibiting actions that damage common property and specifying procedures for repairs and liability.
- Pest Eradication Responsibilities of owners to keep their sections free of pests and allowing access for inspection and treatment if necessary, with costs recoverable from the owner.
Enforcement of Rules
The Body Corporate is responsible for enforcing both the Management and Conduct Rules. This may involve issuing warnings, imposing fines (where permitted by rules and subject to due process), or pursuing legal action through the Community Schemes Ombud Service (CSOS) or the courts if rules are breached.
VDM Attorneys - Your Partner in Rule Management
The effective drafting, interpretation, and enforcement of Management and Conduct Rules are essential for the smooth running of any sectional title scheme and for preserving property values. VDM Attorneys assists Body Corporates in:
- Reviewing and drafting customized rules that meet the unique needs of their scheme.
- Guiding the process of amending existing rules to ensure legal compliance and proper registration.
- Advising on the interpretation and application of rules in specific situations.
- Assisting with the enforcement of rules and dispute resolution through CSOS or other legal avenues.
- We also advise individual owners on their rights and obligations under the scheme's rules, helping them understand their responsibilities and navigate potential disputes. Contact VDM Attorneys for expert legal counsel on all aspects of sectional title management and conduct rules.
Management and Conduct Rules in South African Sectional Title Schemes
Sectional title living in South Africa is governed by a comprehensive legal framework, primarily the Sectional Titles Schemes Management Act 8 of 2011 (STSMA). Integral to this framework are two distinct, yet complementary, sets of rules: the Management Rules and the Conduct Rules. These rules dictate how a sectional title scheme operates and how its residents interact, ensuring efficient administration and harmonious coexistence.
At VDM Attorneys, we possess extensive expertise in sectional title law, assisting Body Corporates, trustees, and individual owners in understanding, interpreting, amending, and enforcing both Management and Conduct Rules.
Management Rules - The Blueprint for Governance
The Management Rules, set out in Annexure 1 of the STSMA, are the administrative backbone of any sectional title scheme. They provide a detailed blueprint for the Body Corporate's operations and decision-making processes, ensuring proper governance and financial stability.
Key aspects covered by the Management Rules include:
- Formation and Establishment of the Body Corporate These rules outline how the Body Corporate automatically comes into existence upon the registration of a sectional title scheme and its fundamental duties and powers.
- Election and Duties of Trustees They prescribe the procedures for electing trustees, their tenure, and the process for their removal. Trustees are pivotal in the day-to-day management of the scheme, acting on behalf of all owners.
- Meetings and Resolutions Detailed guidelines are provided for the frequency, nature, and procedures for various meetings, including Annual General Meetings (AGMs) and Special General Meetings (SGMs). This ensures transparency and active participation from all members in crucial decisions.
- Financial Management The rules establish a robust framework for the Body Corporate's financial responsibilities, encompassing budgeting, the determination and collection of levies, management of funds, and financial reporting. This is crucial for the scheme's financial viability and the judicious use of owners' contributions.
- Insurance Requirements Given the communal nature of sectional title schemes, the Management Rules provide directives on ensuring the property is adequately insured, determining its replacement value, and handling claims effectively.
Conduct Rules - Promoting Peaceful Coexistence
In contrast to the administrative focus of Management Rules, Conduct Rules (found in Annexure 2 of the STSMA) primarily govern the behaviour of owners, occupiers, and their visitors within the scheme. Their purpose is to ensure that all residents can live together peacefully, respecting each other's rights and the communal nature of the property.
While the STSMA provides a set of default Prescribed Conduct Rules (PCRs), Body Corporates have the flexibility to propose and implement their own amended or additional Conduct Rules. Any amendments must be approved by a special resolution of owners and cannot contravene the provisions of the STSMA or other applicable laws. These scheme-specific rules often delve into greater detail to address the unique needs and characteristics of the particular scheme.
Common areas typically addressed by Conduct Rules include
- Keeping of Animals Rules detailing the types and number of animals allowed, requirements for written trustee consent (which should not be unreasonably withheld), and conditions for keeping pets on the common property. Special provisions are generally made for guide or assistance dogs.
- Noise and Disturbances Guidelines on acceptable noise levels, particularly during specific hours (e.g., prohibiting excessive noise between 22h00 and 06h00 Sunday to Thursday, and 23h00 to 07h00 Friday to Saturday), to ensure peace and quiet for all residents.
- Use of Common Property Regulations dictating the use of shared spaces such as gardens, swimming pools, parking facilities, and recreational areas, often including operating hours, guest policies, and prohibiting damage or defacement.
- Alterations and Renovations to Units Requirements for obtaining prior written approval from trustees for structural alterations or changes to the external appearance of a unit or exclusive use area. These rules often require submission of plans, may involve a deposit, and specify allowed working hours.
- Parking and Vehicles Specific rules regarding parking allocations, visitor parking, vehicle maintenance, prohibitions on washing vehicles in parking bays or garages, and restrictions on unroadworthy vehicles. The Body Corporate may have powers to enforce these rules, including clamping vehicles.
- Refuse and Waste Disposal Guidelines for proper waste disposal, recycling, and the placement and prompt retrieval of refuse receptacles.
- Security Rules related to access control systems, entry and exit procedures, and the installation of security devices (like burglar bars or safety gates) on sections or common property.
- Behaviour of Occupiers and Visitors General conduct expectations, including ensuring visitors comply with the rules, and liability of owners for damage caused by their children or guests.
- Maintenance of Exclusive Use Areas Obligations for owners with exclusive use rights to maintain those areas to the satisfaction of the Body Corporate.
- Tenants Provisions outlining the owner's ongoing liability for their tenants' compliance with the rules and any penalties imposed, and requirements for owners to inform the Body Corporate of lease agreements.
- Specific Aesthetic Guidelines Rules on elements like curtain and blind colours (e.g., neutral coloured lining), display of signs or advertisements, and restrictions on removing plants or trees from common property without consent.
- Prohibition of Certain Activities Such as drilling into concrete slabs without a structural engineer's report due to potential interference with reinforcement.
- Enforcement of Rules
- The Body Corporate is mandated to enforce both Management and Conduct Rules. In cases of non-compliance, the Body Corporate can issue notices, impose fines (where appropriate rules exist and procedures are followed), and ultimately pursue dispute resolution through the Community Schemes Ombud Service (CSOS) or legal action in court.
VDM Attorneys - Expert Guidance on Sectional Title Rules
The complexities of Management and Conduct Rules can lead to disputes and administrative challenges within sectional title schemes. VDM Attorneys offers specialized legal assistance to:
Body Corporates and Trustees: Advising on drafting new rules, amending existing ones, ensuring compliance with the STSMA, and effectively enforcing rules within the scheme.
Individual Owners: Providing clarity on their rights and obligations under the scheme's rules and assisting in resolving disputes related to rule interpretation or enforcement.
For comprehensive and practical legal advice on all matters pertaining to Management and Conduct Rules in sectional title schemes, contact VDM Attorneys.