Sectional Title Developments

Sectional Title Developments are often referred to as a block of flats, apartments, semi-detached houses, duet houses, shops, or offices. Sectional Title Developments can be either residential, retail, or industrial and are governed by the Sectional Titles Schemes Management Act No. 8 of 2011 (‘’STSMA’’) and certain parts of the Sectional Titles Act No. 85 of 1986. Remember that the STSMA repealed almost all the provisions from the Sectional Titles Act applicable to Sectional Title Developments except for a few.

Homeowners Associations

Homeowners Associations are often referred to as clusters or full tile properties. They can either be registered under the Companies Act No. 71 of 2008, which is called a ‘’non-profit company’’ or under the common law in South Africa, which is called a ‘’common law homeowners association.

Share Block Companies

Share Block Companies, unlike Sectional Title Developments and Homeowners’ Associations, no real property rights are acquired, and the shareholders obtain a share in the said company (Share Block). Share Block Companies are governed by the Shared Blocks Control Act No. 59 of 1980. We often see these types of Schemes converted to Sectional Title Developments for the simple reason of obtaining a title deed instead of a share certificate.

Retirement Schemes

Retirement Schemes can be any one of the types of Schemes mentioned above and is solely for the use and enjoyment of retired persons. Another form for retired people is in the form of Life Rights. A Life Rights Scheme refers to a contract whereby a resident enjoys the same privileges as that of a homeowner. However, the developer remains the sole owner of the property, which the life right holder ‘’purchases’’ until their death. Retirement Schemes are governed by the Housing Development Schemes for Retired Persons Act No. 65 of 1986.
All of the above Schemes are governed by the Constitution of the Republic of our country (‘’Constitution’’), the Community Schemes Ombud Service Act No.9 of 2011 (‘’CSOS’’), the Protection of Personal Information Act No. 4 of 2012 (‘’POPIA’’) and the Promotion of Access to Information Act No. 2 of 2000 (‘’PAIA’’) to name. Still, a few, there is, of course, other relevant legislation not mentioned here.

Understanding Community Schemes and the Importance of Expert Guidance

Why did we provide the above explanation regarding the various types of Schemes? It seems obvious to most, and of course, you know what you bought into and how to apply the law!

Well, perhaps not; you will be surprised how many individuals come to us stating that they have been given the incorrect legal and/or legislative advice regarding the very basics of Community Scheme living on how to apply the provisions of the Act when it comes to building alterations, extensions and or the installation of solar power or they have been treated unfairly as the scheme governance provisions of the Scheme is Unconstitutional to name but a few!

There is undeniably a plethora of information and documentation out there pertaining to Community Scheme living and how to apply which provision from which Act and how to be compliant; however, do you know exactly how to apply each and every provision of these Acts to your Scheme to be compliant with the various Regulators and how to enjoy peaceful living within your Scheme as everyone knows the law and apply it equally across the board?

It is an unfortunate reality that many Schemes are often faced with incorrect legal advice given to them based on the above pieces of legislation at some other stage, and this results in a Scheme not only violating the prescripts of the various legislation but even worse, being non-compliant, not to mention the tension between the Scheme Executives and the members of the Scheme, resulting in various applications to the Regulators, all that could have been avoided if the Scheme Executives and the members received the correct legal and legislative advice in the first place on how to apply the law in their respective Schemes!

It is evident that the majority of Schemes require an affordable and reliable service and advice on the governance and legal structure of their respective Schemes, including the correct way of conducting annual general meetings, scheme governance documentation that is not only fair and applies equally to all members within the Scheme but rules that will pass Constitutional muster.

Johlene Wasserman: Your Ally in Community Scheme Expertise

We assist clients daily who have received incomplete or incorrect legislative advice or have been provided with a set of poorly drafted scheme governance documentation with a hefty account attached to it at the end of the day. There is a clear gap in the market, as Schemes often struggle to appoint an experienced and professional person to assist them since many people purport to be property experts in the market when this is unfortunately not the case. Alternatively, the expert’s fees are unjustifiably high. There are quite a number of law firms that purport to be experts in Sectional Title and Community Scheme living. However, many of these ‘so-called experts’ main expertise areas fall outside this extremely niche market.

This is why JW Consultants have been established to help you and your Scheme navigate through the maze of all these pieces of legislation, apply it correctly and actually have peace of mind knowing that you are a law-abiding citizen and that you made the right choice buying into the Scheme as the Scheme is governed correctly and you have confidence in the way the Scheme is managed. We take the complex out of complex living!

Our business module aims to provide the services that a Scheme requires explicitly in the most cost-effective and timely manner. Very few of our competitors can beat our price structure and turnaround times. To top this, there are no hidden fees; we quote you what we will charge once the work is completed, no additional fees or hidden charges.

What we bring to the table is unique in the sense that Johlene Wasserman (‘’Johlene’’) has been employed at the Community Scheme Ombud Service (‘’CSOS’’) for almost eight years in a senior management position prior to resigning in March 2023. 

In those eight years, she was responsible for drafting Practice Directives, providing training, education, and awareness to stakeholders nationwide, as well as overseeing the entire Governance Business Unit and the Dispute Resolution Business Unit. It is important to note that Johlene was one of the very first employees at the CSOS and developed the majority of the dispute resolution process still used today; in fact, Johlene was a Conciliator at the CSOS for many years, and she still believes this is the best way of settling a dispute between the parties if it gets to that! 

Johlene also developed the processes for the scheme governance documentation business unit, including the quality assurance of all management and conduct rules, memorandum of incorporation, and constitutions, to name a few. She issued a compliance certificate to the Schemes. 

Lastly, Johlene developed many of the training materials for the CSOS, many of which are still being used today to train Scheme Executives, members, managing agents, caretakers, developers and so forth.

JW Consultants: Experts in Community Scheme Compliance

Johlene has first-hand knowledge regarding all CSOS processes and how to apply them correctly.

The CSOS cannot deliver these services as the CSOS’s powers are limited in terms of the CSOS legislation, providing advice being one such specific limitation, as well as drafting scheme governance documentation, chairing meetings and writing legal arguments for all CSOS disputes.

JW Consultants are aware that Schemes do not necessarily want to lodge a dispute at the CSOS. However, should they have received incorrect legal advice or guidance or have a set of scheme governance documentation riddled with errors and omissions, their reluctance is well-founded. Disputes can be limited if members of a Scheme understand their roles and responsibilities, as well as their rights and obligations, and in addition, their scheme governance documentation is fully compliant, which will ensure a well-run and compliant Scheme.

For expert help with your community scheme compliance, contact Johlene Wasserman today!