Sectional Title and “U”
Hosted by TVDM Consultants on 15 October 2026
For more information please contact us on 061 536 3138 or email us as info@tvdmconsultants.com.
Speaker Information:
Join Sarah, Hendrik and Willie as they discuss the essentials of sectional title ownership in South Africa.
They outline:
understanding scheme rules,
finances and maintenance plans,
owner responsibilities,
managing agents and Executive Managing Agents (EMAs).
Whether you’re a buyer, owner, trustee or managing agent, gain practical insights to help you make informed property decisions and contribute to well-managed community schemes.
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Sectional title ownership webinar discussion
The meeting focused on a webinar discussion about sectional title and ownership, with Sarah hosting and presenting first. Sarah shared her personal experience as both a sectional title attorney and resident, admitting she hadn't properly reviewed her scheme's conduct rules until recently. She outlined key documents prospective buyers should request: conduct rules, management rules, sectional plan, Annual General Meeting (“AGM”) minutes, and financial statements. Hendrik then provided perspective as a managing agent, emphasising the importance of understanding scheme culture, financial health beyond just levy amounts, and the distinction between problems for body corporate versus individual issues. The discussion highlighted how low levies don't necessarily indicate a healthy scheme and that maintenance and financial sustainability require careful consideration.
Body corporate owner engagement strategies
Hendrik advised current owners to attend meetings, read communications, and understand that managing agents are not the decision-makers but work on behalf of the body corporate. He emphasised that owners should propose solutions when raising issues and understand that many problems are not body corporate issues but individual unit matters. Sarah agreed that owners often perceive managing agents as running operations, and noted the challenge of finding willing trustees who can step up to address issues collaboratively with other owners.
Sectional title purchase considerations
Willie discussed key considerations when purchasing into a sectional title scheme, emphasising the importance of understanding the scheme's structure, rules, and financial health. He highlighted specific issues like short-term letting restrictions and the need for sufficient funds to cover expenses and maintenance plans. Willie also stressed the importance of understanding future liabilities, such as loans, and the potential for participation in scheme governance as a trustee.
Scheme administrator and rules overview
Willie explained that an administrator has been appointed to manage the scheme for the next 3 years, with full control over decisions, and noted that owners are unhappy about rule enforcement regarding electrical meters and other issues. Willie advised potential participants to understand the scheme's rules regarding pets, noise regulation, parking, short-term letting, and home businesses, emphasising the importance of obtaining proper permissions and consents before making decisions about renovations or additions.
Emotional support pets in housing
Willie and Sarah discussed challenges with emotional support pets in residential schemes, noting that current legislation lacks uniform standards for assistance animals and makes removal difficult. Willie shared a case study of a poorly maintained scheme that had no levy increases for six years, requiring a 139% increase when they took over administration. The discussion highlighted the importance of understanding property boundaries, participation quotas, and the legal implications of sectional title administration and management decisions.
Sectional title purchase guidelines
Willie explained the importance of understanding participation quotas and exclusive use areas when purchasing into a sectional title scheme. He highlighted issues with unpaid levies, including a 15 million Rand debt owed by the developer, and emphasised the need for buyers to verify that alterations and extensions are properly recorded and approved. Willie also advised checking if the developer has rights to further extensions or additional phases. Sarah shared her experience with water and sanitation fees being applied to her parking bay, demonstrating the practical impact of understanding legal ownership components. The discussion concluded with a question from Gina Jacobs about alternative methods to appoint an Executive Managing Agents (“EMA”) beyond the 25% member call for a Special General Meeting, though the answer was not completed in the transcript.
Executive managing agents responsibilities
Willie advocated for EMAs to fully manage community schemes, emphasising their fiduciary responsibility and the need for professional decision-making. Hendrik and Willie discussed the importance of compliance with reserve fund contributions and proper budgeting, including legal fees for levy recovery. They highlighted the need for active management of 10-year maintenance, repair and replacement plan and emphasised that capital expenditures require separate owner approval beyond just budget approval.