Draft Sectional Titles Schemes Management Bill, 2010 ( B20- 2010) Presentation to the select committee on public services 01 March 2011 National Department of Human Settlements Draft Sectional Titles Schemes Management Bill, 2010 ( B20- 2010)

1. BACKGROUND Aim of the Bill is to give effect to Cabinet’s Strategy to bring all housing-related legislation administered by other Departments under the roof of the Department of Human Settlements. In terms of BNG the mandate of the Department has been expanded to encompass the entire residential market. One of the Department’s task in the mandate is therefore to ensure that all housing matters reside under one roof.

BACKGROUND (continued) In particular, the aim of the draft Bill is to─ remove the scheme management provisions from the Sectional Titles Act, 1986; incorporate the scheme management provisions in a new statute that will be administered by the Minister of Human Settlements; and re-arrange the scheme management provisions to make them more understandable to the members of the public and the persons and authorities who must implement these provisions, but without changing their content.

BACKGROUND (continued) Department of Rural Development and Land Reform is at present responsible for the administration of the Sectional Titles Act, 1986 (Act No. 95 of 1986) which currently deals with – the survey and registration of sectional plans; the registration of real rights in sectional title units; and the management and administration of sectional titles schemes. The Department of Rural Development and Land Reform, however, deals primarily with registration and survey issues. Its primary mandate does not necessarily extend to deal with complaints from the public and dealing with problems arising from scheme governance.

BACKROUND (Continued) Consolation process between the two Departments The Department of Rural Development and Land Reform and the Department of Human Settlements (“the Department”) established a Technical Task Team during 2007. The Technical Task Team was established to ensure co-operation and consultation between the two Departments during the drafting process of the Sectional Titles Schemes Management Bill, 2010 (“STSM”) and the STA Bill, 2010. Further consultations between the two Departments have been ongoing during the drafting process of the two Bills. The two Bills were placed in the public domain during 2009, and were subsequently published in the Government Gazette for public comments. The two Departments participated in the public comments and public consultation process.

2. EFFECT OF THE DRAFT BILL ON THE SECTIONAL TITLES ACT, 1986 The Sectional Titles Act, 1986 will retain all provisions regulating the survey and registration aspects of sectional titles and will continue to operate under the Minister of Rural Development and Land Reform. Once the Sectional Titles Schemes Management Bill, 2010 has been promulgated, the Sectional Titles Act will remain with and deal solely with registration and survey issues.

3. CONTENTS OF DRAFT SECTIONAL TITLES SCHEMES MANAGEMENT BILL, 2010 Bill is divided into 21 clauses. Amendments to the Sectional Titles Act, 1986 are set out in a Schedule to the Bill. The Bill was certified by the office of the Chief State Law Advisers and therefore the Bill is consistent with the constitution and is not in conflict with any other law.

Clauses Clause 1 to 8 of the Bill deals with: definitions; establishment, membership, name, capacities and first meeting of bodies corporate; functions of bodies corporate; functions and powers of bodies corporate; additional powers of the bodies corporate; trustees of body corporate fiduciary position of trustees; and proceedings on behalf of bodies corporate.

Clauses Clause 9 to 10 of the Bill covers─ the body corporate rules applicable to bodies corporate and sectional owners; and the effect of quotas and the variation thereof.

Clauses Clause 11 to 16 of the Bill regulates─ various legal transactions with regard to the common property and units such as – alienation and letting of common property; expropriation of common property; exercise of a right of extension and; extension of the common property;

Clauses Clause 11 to 16 of the Bill details─ the duties of owners; insurance by owners; the recovery from owners of unsatisfied judgment debts against bodies corporate, and non-liability of bodies corporate for debts and obligations of developers; the appointment of administrators and; destruction of or damage to buildings;

Clauses Clause 17 to 21 of the Bill deals with miscellaneous matters, including─ the establishment of a Sectional Titles Schemes Management Advisory Council to advise the Minister; Appointment of members of the advisory council and the procedure of appointment thereof; the making of regulations; and transitional arrangement and short title and commencement.

SCHEDULE The amendments to the Sectional Titles Act, 1986 are set out in a Schedule to the Bill.

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