CORRECTION AND APOLOGIES TO ASLAM NORDIEN
In the Snippets of 22 November 2005 we mentioned that Barbara Shingler and Gerhard Jooste has been appointed to the S/T Regulation Board.
The DLA furnished us with the names of the newly elected Board members. Aslam Nordien, of our Cape Town region, was re-elected as well.
My apology, Aslam, for this oversight.
The members of the Board are:
Mr J Gomes - member (Law Society of South Africa)
Mr H Goga - Alternate member
Mr VV Constable - Member (South African Council for Professional and Technical Surveyors)
Mr RC Abrahamse - Alternate member
Mr S W Njobe - Member (The South African Council for the Architectural Profession)
Mr AJ Louw - Alternate member
Mr N Lala-Mohan - Member (Banking Association of South Africa)
Mr SG Grobler - Alternate member
Ms B Shingler - Member (Institute of Estate Agents of South Africa Association)
Mr P Nathan - Alternate member (South African Property Owners Association)
Mr A Nordien - Member (National Association of Managing Agents)
Dr G Jooste - Alternate member (National Association of Managing Agents)
Mr S Ogunronbi - Department of Land Affairs
Mr M Ngakane - (Alternate member)
Although Barbara actually represents the Institute, while Aslam represents Nama, she together with Aslam, will form a strong voice for the the S/T Industry on this Board.
VERY IMPORTANT – MANAGEMENT CONTRACTS MAY BE TERMINATED WITH 30 DAYS NOTICE
As this is of the extreme importance I relay the e-mail of Graham in full herewith:
Dear Martin,
Further to your conversation with Ursula this afternoon, I confirm that GN R.1109 of 18 November 2005 amended the Regulations under the Act. Sub-clause 3(d) of the Government Notice substituted prescribed management sub-rule 46(1) which is part of Annexure 8 to those regulations, effectively reducing the percentage of owners who can instruct the trustees to appoint a managing agent from 50 to 25, expanding the scope of a managing agent’s duties to include obligations to public bodies & local authorities, providing for one month's notice of termination of the managing agent’s contract after an initial period of 1 year and removing the second proviso which allowed either party to avoid the contract if it was not reduced to writing within 30 days of conclusion.
The text of this part of the Government Notice (with omissions in bold square brackets and insertions underlined) read:
"(1) Notwithstanding anything to the contrary contained in rule 28 and subject to the provisions of section 39(1) of the Act, the trustees may from time to time, and shall if required by a registered mortgagee of [50] 25 percent of the units or by the members of the body corporate in a general meeting appoint in terms of a written contract a managing agent to control, manage and administer the common property and the obligations to any public or local authority by the body corporate on behalf of the unit owners, and to exercise such powers and duties as may be entrusted to the managing agent, including the power to collect levies and the power to appoint a supervisor or caretaker : Provided that a managing agent shall be appointed [for a year at a time, and unless the body corporate notifies the managing agent to the contrary, such appointment will be automatically renewed from year to year : Further provided that if the agreement has not been reduced to writing within thirty days of conclusion, it shall be voidable at the instance of either party] for an initial period of one year and thereafter upon 1 month’s written notice of termination by either party.”.
I think that this aspect is important enough to warrant a special edition of ‘Snippets’ as it negatively affects the security of a managing agent’s annuity income flow from existing contracts. I have no idea why the Regulations Board decided to remove what was the second proviso to this sub-rule, as I believe that a provision encouraging written managing agency contracts is a good thing.
Kind regards,
YOUR INPUT TO THE REGULATION BOARD NEEDED
Once again we are in a position to make our voice heard in the Regulation Board and to influence changes to the S/T Act.
Herewith an e-mail from Barbara Shingler, chairperson of Nama KwaZulu Natal and director of Nama. (Her e-mail address is: barbara@eastcoast.co.za)
The same request will come from Aslam Nordien, Western Cape Region and director of Nama. His e-mail address is: mirweepprop@mweb.co.za
PLEASE USE THIS OPPORTUNITY!!!!
"I am advised by the Department of Land Affairs that the Sectional Title Regulation Board usually meets in April each year only once a year and this could be made more regularly if there was a need for it. We are contacted prior to the meeting requesting items we would like to be placed on the agenda for consideration.
Would it be forward of me to suggest that we contact all our members asking them if there are any specific items in the Sectional Titles Act that they believe should be addressed and the manner in which the amendment should be carried out or merely for discussion.
I for one would like to know what is happening with the Ombudsman and there would appear to be a definite need for some kind of intervention on behalf of owners and managing agents.
I look forward to hearing from you in this regard.
Yours faithfully,
Barbara Shingler
100% INCREASE OF MANAGEMENT AGENTS
There are 65,000 agents registered with the EAAB. This represents an increase of 100% from the 32,000 registered a year ago. More than 80%of estate agents practicing in South Africa today have been in the market for less than two years.
(Newsletter November 2005 - from the Tinus Strydom Property Group)
(NOTE: Less than 5,000 of the number of estate agents are black)
CARTELISM IN SECTIONAL TITLE – FACT OR FALLACY
An interesting article on Cartelism in Sectional Title appears on last month's issue of the 'Sectional Title Property Magazine'
This article discusses the collusive conduct of M/A's, estate agents and developers. Really interesting reading but I doubt if this will be the end of the story.
WEBSITES TO VISIT:
www.labourwise.co.za - for more articles on Labour Relations and Labour Laws
www.cipro.co.za - to obtain information pertaining to annual returns or to download the training manual on the yearly re-registration of companies - the Companies and Intellectual Property Registration Offices’ (Cipro)
www.info.gov.za - where you can view new legislation, Bills, Government notes etc.
FROM THE DESK OF MARINA CONSTAS
1) PETS! PETS! PETS!
Pets in sectional title, cluster and retirement schemes – a hugely emotional issue no matter on which side of the proverbial fence you find yourself!
From a legal perspective though, it’s not about the dog, the cat or the hamster in question. Usually, particularly when it comes to sectional title, it revolves around the question of whether the Trustees have exercised the discretion conferred upon them in terms of the Rules of the scheme in a reasonable manner. Alternatively, the unit owner has simply refused, or neglected, to abide by the Rules of the scheme by bringing a pet into the scheme in contravention of the Rules OR by permitting the animal to cause a nuisance to fellow residents.
Lately, we have had clients who have had to spend large amounts in legal fees in High Court and Arbitration actions with regard to pets in sectional title schemes.
2) REPORT IN "THE STAR" OF 28TH OF OCTOBER
The EAAB is investigating allegations of fraud by 3 sectional title managers totaling more than R20 million. The allegations are apparently being investigated.
It comes as a shock that this could be allowed to happen!
ENJOY YOUR FESTIVE SEASON
As this will be the last Snippets for the year I would like to take this opportunity to thank you all, and our regional secretaries, for the help and co-operation during this year.
May you all enjoy a sincere and peaceful Christmas, in the spirit it is meant to be, and a relaxing festive season.
Regarding the future of Nama I can only quote Dan Helder Camera who said:
"WHEN WE DREAM ALONE, IT IS ONLY A DREAM. WHEN WE DREAM TOGETHER IT IS THE BEGINNING OF REALITY."
A MAN WHO WANTS TO LEAD THE ORCHESTRA
MUST TURN HIS BACK ON THE CROWD.
(James Crook)
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