Compulsary (by law) for sectional title

A sectional title complex must be established and run in terms of the Sectional Title's Act of 1986, and the amendments to the Act made thereafter. A complete copy of the Act can be downloaded at

In terms of the Act, the following is a given:

  • When you own a unit in a sectional title complex, you automatically become a member of the body corporate. You own your section in the complex, but is also co-owner of the communal property such as the parking area.
  • The most important funtion of a body corporate is to establish a fund to cover expenses relating to the communal property and municipal services. This fund is called the levy fund. Each member's contribution to the levy fund is calculated according to the unit's participation quota. The participation quota is the total floor area of a section,  expressed as a percentage of the total floor area of all the sections in the scheme.
  • The Act determines that the body corporate must have a bank account. Management rules 25 through 45 of Annexure 8 specifically deal with the financial responsibilities of the body corporate. Apart from having a bank account  and keeping proper books of account, the books of the body corporate must also  be audited annually. When there are less than 10 units, an accounting officer may carry out the "audit". 
  • The Act stipulates that every complex must have both management rules and conduct rules (formerly house rules) to regulate the relationship between owners in the scheme.  If the rules had not been amended or replaced by the body corporate, the management or conduct rules found in Annexure 8 and Annexuare 9 to the Act, automatically apply. A legal procedure must be followed to amend the rules - more about that in a future article. Owners in a complex have a duty to know and understand the rules, and also to make sure that their tenants, employees and guests comply with the rules. Ignorance of the rules is no excuse.
  • The AGM or Annual General meeting must be held within four months of the end of each financial year. Owners must be given 14 days' notice of the meeting. Matters addressed at the AGM include consideration of the financial statements, approval of replacement values for insurance purposes,  approval of income and expenditure statements, determination of the monthly levy and election of trustees.  Ideally all owners should attend the AGM to protect their interests in the complex.  The quorum for the meeting is calculated in terms of the total number of units in the complex. In the next newletter more about how many members of a body corporate constitute a quorum. 


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