I want to be very brief in this article so that those interested may have more time to think about my discussion point.
We have previously discussed shortcomings with the Sectional Titles Schemes Management Act (STSMA), which are many.
I want to focus on just two of them today.
The STSMA was signed into law and became effective on October 7, 2016.
Ideally, the STSMA was introduced in order to provide for the establishment of bodies corporate to manage and regulate sections and common property in sectional title schemes.
Its main purpose is to apply rules applicable to such schemes – establish a sectional title schemes management advisory council and to provide for any related matters.
The two biggest problems have been, firstly, the age of buildings that were converted to sectional title schemes and the size of many of the early schemes.
Buildings have a practical lifespan.
Many of the original sectional title schemes were existing buildings that were converted.
Some of these buildings are now approaching 80 years and need major upgrading – particularly piping and wiring – and modernisation and owners just don’t or have not made provision for these upgrades, especially in less affluent areas.
The second problem is that these schemes have a small number of units and are uneconomical for a managing agent to administer.
The reality is that the larger the scheme, the easier it can be managed.
I wonder if it would be worthwhile to have two schemes combining for admin purposes.
Food for thought . . .
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia. You can contact him via email: mike@platinumglobal.co.za