Changing up the rules

18 September 2020 | Nicole Tavares

There are many pros and cons to living in a sectional title scheme, an issue, which can be seen as both a pro or a con, depending on its nature, is the scheme rules. The fact is, all schemes have rules, some have tailored rules to meet their specific scheme needs, while others simply have the prescribed rules, as per Annexures 1 and 2 of the Regulations to the Sectional Titles Schemes Management Act 8 of 2011 (“the STSMA”).

These rules can, and in most cases should, be amended to better suit the specific needs of your scheme. This article will focus on how you would go about amending your schemes conduct rules. Let's start by answering the following questions:

What are conduct rules?
As the name suggests, these rules are put in place to control and/or direct the conduct of all owners, occupiers, tenants and their visitors, guests, contractors, domestic workers, clients, and customers within a sectional title scheme.

How can you amend your conduct rules?
As per section 10(2)(b) of the STSMA, a body corporate can remove, amend, substitute and add to the prescribed conduct rules. This is done by means of obtaining a special resolution of the members of the body corporate.

However, keep in mind that you would need to ensure that no “new” rule contradicts any rule found in the management rules, or any clause in the STSMA.

What should be included in your schemes conduct rules?
Does your scheme allow pets or have a lift, a swimming pool, a gym, a playground or similar? If yes, then you should have rules to regulate the particular conduct in each instance.

Do you know when the body corporate is allowed to issue a fine? You should, as all the grounds to receive a fine must be set out in the rules.

Does your scheme allow owners to use visitors parking bays? If yes, have they created exclusive use areas in terms of the rules?

When creating new, or amending your current rules, keep in mind that every rule must apply equally to all owners. Further to this, the Community Schemes Ombud Service (“the CSOS”) will not approve rules that single out a group of persons by applying a different practice for them versus the majority. There are certain standard rules which the CSOS requires when reviewing and approving your schemes rules, for example rules are not likely to be approved if they do not include a rule allowing slaughtering for religious reasons in a section or exclusive use area. The rules can however include a procedure relating to the slaughtering, which must be followed.

We have obtained the special resolution now what?
Once you have obtained the required special resolution, the new or amended rules need to be reviewed and approved by the CSOS. This is done by submitting a completed Form B (Notification of amendment of rules), which can be found on the CSOS website, together with the new or amended set of conduct rules.

There are some CSOS requirements which must be met, namely:

• the rules must be consolidated to form one set of conduct rules,

• there must be an index at the start of your conduct rules, and

• there must be a clause pointing out any amendments to rules that impose financial or maintenance obligations, creates exclusive use areas, or varies the determination of levies and voting rights on an owner.

When do the new conduct rules come into effect?
The effective date of the amended rules is the date that the CSOS issues the certificate approving the amendments. The body corporate must keep a copy of all the rules, have them available at meetings, deliver the rules to any new owner or occupier, deliver the new rules to all owners, and on request of an owner, deliver a copy of all the rules to such owner.

It is important that you have conduct rules specific to your scheme, and as you can see from the above, it is a fairly simple process to follow, the most difficult part is deciding on which rules should be amended or added, as well as the correct wording of each rule.

If you would like to amend your scheme’s conduct rules, or update your rules under the Sectional Titles Act, please contact us on 061 536 3138 or email info@tvdmconsultants.com.