A Complete Guide to Body Corporates in South Africa | All You Need to Know.

Body Corporates are an essential part of property ownership in South Africa, especially in the case of sectional title properties. As a property owner or potential buyer, it's important to understand the role and responsibilities of a Body Corporate, as well as the legal framework that governs their operations. In this guide, we'll take a closer look at Body Corporates in South Africa and provide you with everything you need to know.

What is a Body Corporate?

A Body Corporate is the collective name given to the owners of the units and common property within a sectional title scheme.

With effect from the date on which any person other than the developer becomes an owner of a unit in a scheme, there shall be deemed to be established for that scheme a Body Corporate of which the developer and such person are members, and any person who thereafter becomes an owner of a unit in that scheme is a member of that Body Corporate.

A Body Corporate is a mandatory legal entity made up of the registered unit owners that oversee the management and maintenance of communal areas within the scheme. The provisions of the Companies Act, 2008 (Act No. 71 of 2008), do not apply in relation to the Body Corporate.

What is a Sectional Title Scheme?

A Sectional Title Scheme provides for the division of buildings into sections and common property and for the acquisition of separate ownership in sections coupled with joint ownership in common property. These schemes fall under the control of the Sectional Titles Act.

The Legal Framework for Body Corporates in South Africa

Body Corporates in South Africa are governed by the Sectional Titles Schemes Management Act (“STSMA”) and the Community Schemes Ombud Service (CSOS) Act. These two acts provide a legal framework for the management and governance of sectional title properties and establish the roles and responsibilities of the Body Corporate.

The CSOS Act establishes the Community Schemes Ombud Service, which is responsible for providing a dispute resolution service for community schemes, including Body Corporates.

What is the Sectional Title Schemes Management Act?

The Sectional Title Schemes Management Act (“STSMA”) provides for the establishment of bodies corporate to manage and regulate sections and common property in sectional titles schemes and for that purpose to apply rules applicable to such schemes.

The rules prescribed under STSMA apply to all sectional title schemes.

Roles and Responsibilities of a Body Corporate

The primary role of a Body Corporate is to ensure that the common property is maintained and managed effectively. This includes the repair and maintenance of buildings, the upkeep of common areas, and the enforcement of rules and regulations. The Body Corporate is also responsible for the collection of levies, which are used to cover the cost of maintaining the common property.

In addition to these responsibilities, the Body Corporate is also responsible for the following:

• Ensuring that the rules and regulations of the scheme are adhered to by all owners and occupants.

• Enforcing the payment of levies and dealing with any arrears.

• Preparing and managing the budget for the scheme.

• Maintaining proper records and accounts of the scheme's finances.

• Holding Annual General Meetings (AGMs) to report on the scheme's finances and operations and electing trustees to manage the scheme.

• Opening and operation of all bank accounts for the body corporate.

• Appointment of all agents and employees in the name of the development scheme.

• Ensure compliance with any general laws and scheme rules by members of the development scheme.

• Responsible for the hiring or letting of any movable property for the use and enjoyment by owners.

• The protection of the common property.

Managing a Body Corporate

Managing a Body Corporate can be a complex and time-consuming task, especially for owners who are not familiar with the legal framework and the responsibilities that come with it. To manage a Body Corporate effectively, it's important to have a good understanding of the legal framework, the rules and regulations of the scheme and the financial management of the scheme.

It's also important to work with experienced professionals, such as attorneys and managing agents, who can provide guidance and support in managing the Body Corporate.

Trustees of a Body Corporate

The functions and powers of the Body Corporate must be performed and exercised by the trustees of the body corporate holding office in terms of the rules, the provisions of the STSMA and any restrictions imposed or direction given at a general meeting of the owners.

Each trustee of a Body Corporate stands in a fiduciary relationship to the body corporate.

What Are Body Corporate Rules?

A scheme must as from the date of the establishment of the Body Corporate be regulated and managed, subject to the provisions of the STSMA, by means of rules.

The rules that apply to the unit owners and tenants occupying the units within the scheme, outlining the management of the scheme and the expected conduct of the occupants.

When buying a sectional title unit it is important that you carefully read and fully understand the Body Corporate rules and regulations prior to signing the sales agreement. The rules are enforceable provided that they are registered with the Deeds Office and the trustees’ decisions are final and binding. Should an owner or occupier fail to comply it is within the trustees’ power to issue a written warning, monetary fine or further legal action as stipulated in the Body Corporate rules and in accordance with the Sectional Titles Act and STSMA.

What is a Body Corporate Dispute?

A sectional title disputes is where a dispute arises between owners, tenants, trustees, neighbours, body corporates and/or third parties which relate to a sectional title scheme (e.g. dispute relating to outstanding levies, nuisance, abuse of the common area, unsafe construction or building operations, etc.).

Most sectional title disputes can be easily resolve through effective communication between all stakeholders. Trustees and managing agents should try to resolve these disputes as soon as possible. However, trustees should be careful not to overstep their mandate when attempting to settle disputes.

Conclusion

Body Corporates play a critical role in the management and governance of sectional title properties in South Africa. Understanding their role, responsibilities, and the legal framework that governs their operations is essential for property owners and potential buyers. With this guide, we hope to have provided you with a comprehensive understanding of Body Corporates in South Africa and how to manage them effectively. If you need assistance with a sectional title dispute, our property lawyers are highly skilled, experienced and acquainted with these type of disputes. Our Property Lawyers have extensive experience in dealing with Sectional Titles, Body Corporates and Disputes that arise between members of a Body Corporate.

If you need assistance with a property dispute matter, contact our offices today to schedule a consultation with one of our specialist property law attorneys. Alternatively, you can schedule a consultation online by using the following link Book An Online Consultation.