E-NEWSLETTER | NOV 2016

Disclaimer: This eMagazine is produced especially for residents in Von Wielligh Property Management to provide updates and useful information. It is produced by GLOVent Media & That Touch Media, on behalf of the homeowners’ association (HOA) of Von Wielligh Property Management. Although every effort is taken to ensure accuracy of content, the HOA and/or the publisher, cannot be held liable for any inaccurate information, and may not agree with all opinions expressed in this publication.

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Our Next Newsletter: Dec 2016

ContentsLetter From The Principal

Changes To Sectional Title

Schemes

Community Schemes Ombud

Services

Safety Rules When Swimming

Photographers’ Corner

Gardeners’ Corner

Laughter Is The Best Medicine

Your Questions Answered

03

04

09

13

18

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A division of GLOVent Solutions www.glovent.co.za | chandi@glovent.co.za

This magazine is designed & published in partnership by :

A division of That Touch Consultants

Welcome to all new residents

Whenever faced with an arduous task, one that makes you wonder how on earth you should approach and deal with the huge job at hand, the best option is to jump in and tackle it head on. In Afrikaans we have a saying: “Hoe eet jy ‘n olifant? Happie vir happie”. This applies to your VPM Team at present, following the recent passing of the Community Schemes Ombud Service (CSOS) Act and the new Sectional Titles Schemes Management (STSMA) Act.

The implications of having the requirements of these two Acts implemented are quite substantial – and at the moment we are dealing with this “elephant”. The first deadline of the CSOS (that all complexes must be registered by 7 November 2016) has been met, and we are already busy working on the next stages of the process.

Due to the importance and relevance of the new legislation (which applies PRINCIPAL - VON WIELLIGH PROPERTY MANAGEMENT

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DEAR to both Sectional Title as well as Home Owners’ Associations) we will provide more information on the requirements in this newsletter.

As you would know by now, the Rustenburg Local Municipality has implemented new refuse removal arrangements and this has really let the cat out amongst the pigeons – mayhem in some complexes where the gardener/labourer’s working days no longer correspond with the refuse removal day of the week. However, we are confident that this issue will sort itself out and that life will return to normal soon.

As always, VON WIELLIGH PROPERTY MANAGEMENT to your service.

CHANGES TO SECTIONAL TITLE SCHEMESThe Sectional Titles Schemes Management Act (STSMA), which replaces parts of the Sectional Titles Act, came into force on 7 October 2016. Whether you agree with the changes or not, there is little one can do about these changes as it is now officially Law.

Specific amendments to the Act will have important implications to the management of sectional title schemes, with key changes for trustees to implement. Also, the management of sectional title schemes will now become more complicated and labour intensive.

Although the STSMA repeals and replaces specific sections of the Sectional Titles Act (STA) of 1986 (mainly sections 36 to 48) the STA has not been abolished: its sections on how sectional titles schemes must be established will remain in force.

The Sectional Titles Schemes Management Act is new territory for us all, and therefore VPM has already embarked on training for key role players in the company, whilst others have already attended workshops in order to obtain the necessary know-how on how to implement the required changes.

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Page 5CHANGES TO SECTIONAL TITLE SCHEMES CONT.

So, what are the most important changes that you should be aware of? In this article we will only focus on the financial implications of these amendments. What we can say is that the cost of living in a sectional title scheme will increase substantially. Why do we say this? Let us explain the new requirements and why it will most certainly have an impact on your pocket:

Some owners of sectional title properties could see their levies increase significantly in the near future because the STSMA requires bodies corporate to contribute a certain amount of money to a reserve fund each year. • The reserve fund was established specifically for future repairs and maintenance

in the complex. To this effect, a 10-year Maintenance Plan needs to be compiled and updated by the Body Corporate.

• At this point the amount that is suggested will be required by each sectional title scheme to be set aside is 25% of the budgeted annual levy figure. That is, if the levies are to be R100 000 for the year, then a reserve amount of R25 000 must be collected which puts the total for the year to be paid in by owners at R125 000.

Bodies Corporate will now be required to prepare two different budgets every year for presentation and approval at Annual General Meetings: • The first budget is the administrative budget which makes provision for the

daily and monthly expenses for the scheme.• The second, new budget is the reserve fund budget which must be prepared

annually to provide for future maintenance work and improvements to the buildings. Bodies Corporate will now have to use professional building and maintenance estimators to calculate costs for various maintenance projects and improvements over a period of 10 years, and the costs of these quotations will be an additional cost to the Body Corporate. These budgets need to be updated annually (prior to the annual general meeting) for review by all the members in the scheme.

Bodies Corporate will under the STSMA need to establish two separate bank accounts henceforth: one for normal administrative transactions to cover normal operating costs (including maintenance and repairs), and a reserve fund (to cover the cost of future maintenance and repairs).

Page 6CHANGES TO SECTIONAL TITLE SCHEMES CONT.

• Proper budgeting for the extra bank charges need to be considered.• Since two separate budgets (with two different bank accounts) will be run

simultaneously, the managing agent will be obliged to maintain two separate sets of bookkeeping.

• An increase on audit fees will also need to be considered as this will now most probably double, as two sets of financial statements will need to be prepared at financial year-end.

Schemes are now obliged to collect fees payable to the ombud service. These fees are payable on a quarterly basis and will be collected from every owner in the scheme: • How the fees are structured is further explained in the next article, The Community

Schemes Ombud Services (CSOS).• The fees will be collected from the Body Corporate as a collective entity and will need

to be budgeted for annually.• Additional fees will be payable to the ombud service for ad hoc services provided by

their office.

Some Bodies Corporate may already have liability insurance cover in place through their existing insurance policies. However, schemes are now obligated to minimum liability insurance of R10 million. Where it is not already in place, additional premiums may be payable for the additional insured risk. Under the old Act, fidelity insurance was optional for Bodies Corporate to cover itself against fraudulent activities by any trustee or employees of the Body Corporate. However, with the new Act, it is compulsory: • The amount of fidelity cover required will be determined by considering

both the administrative budget and the surplus funds available to the body corporate at the last day of the previous financial year of the scheme.

By means of a Special Resolution, a Body Corporate may now appoint an executive managing agent to perform all the functional duties of the trustees and exercise the same powers:

• The executive managing agent will assume all the fiduciary responsibilities of the trustees.

• The executive managing agent will report to the trustees every four months.• The trustees will be relieved of the day-to-day responsibilities they carry, and

which they do not get paid for. As a result, the managing agent can now make quicker, educated decisions based on experience and knowledge.

• However, this amendment will result in the managing agent increasing their management fees substantially to reflect the added responsibility and risk.

So this is, in a nutshell, some of the changes that will have a direct impact on the finances of owners in sectional title complexes.

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COMMUNITY SCHEMES OMBUD SERVICES (CSOS)

Residents of communally owned properties, including sectional title schemes and homeowners’ associations, can now complain to a statutory dispute-resolution service if they believe their complexes are being mismanaged or if they have a dispute with another resident.

The long-awaited Community Schemes Ombud Service (CSOS) officially opened its doors on Friday, October 7, when the final regulations governing its mandate and functions were published in the Government Gazette. President Jacob Zuma assented to the CSOS Act in June 2011, but it was four years later that the Minister of Human Settlements released a draft version of the regulations for public comment in October 2015.

COMMUNITY SCHEMES FINALLY HAVE A CHANNEL FOR COMPLAINTS

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It is hoped the CSOS will result in a major shake-up of community schemes, particularly sectional title schemes, because many owners, tenants, trustees and bodies corporate thumb their noses at their statutory and common-law obligations and ignore schemes’ internal governance rules.The common problems that beset schemes include:

• Poor management of scheme finances – in particular, not having fidelity cover to protect owners in the event of fraud or theft committed by scheme executives or a managing agent;

• Trustees making or amending the scheme’s rules without seeking a resolution from the body corporate;

• Disputes between owners and their body corporate over who is liable for maintenance and repairs;

• Trustees or owners making alterations to the common property without authorisation;

• Owners extending their dwellings and incorporating parts of the common property without permission; and

• Trustees being unable to stop anti-social behaviour, such as residents being disturbed by late-night parties and pets fouling the common property.

Until now, if a dispute could not be settled internally, there were two expensive alternatives: private arbitration or engaging an attorney and taking the matter to a magistrate’s court or the High Court. The cost, time and effort involved deterred many bodies corporate or owners from pressing their case. Aggrieved owners suffered in silence or sold and moved out.

The jurisdiction of the CSOS is not limited to sectional title schemes; it includes share-block companies, homeowners’ or property-owners’ associations,

housing schemes established in terms of the Housing Developments for Retired Persons Act and housing co-operatives established under the South African Co-operatives Act.

If the CSOS accepts a complaint, it will be settled by conciliation or arbitration. An order issued by a CSOS adjudicator has the same authority as a judgment of a magistrate’s court or High Court, depending on the type of relief sought.

The ombud service comes at a price: all community schemes will have to pay a CSOS levy to the service each quarter.

A scheme’s levy is calculated as two percent of the amount by which the levy of each unit in the scheme exceeds R500 a month. In other words, no

COMMUNITY SCHEMES OMBUD SERVICES CONT. Page 10

levy is due by units that pay a community scheme a monthly levy of R500 or less. The levy is capped at R40 a month (or R480 a year), which kicks in once the monthly levy paid to the scheme is R2 500 or more.

As an example, if you, as a sectional title owner, pay a body corporate levy of R900 a month, your CSOS levy will be two percent of R400, which is R8 a month (R96 a year). If your body corporate levy is R1 750 a month, your CSOS levy will be R25 a month (R300 a year).

The draft regulations released last year proposed that the CSOS levy be based on a unit’s municipal valuation, but this was changed in the final regulations.

Owners whose monthly levy exceeds the R500 threshold can apply to have their CSOS levy discounted or waived. They will have to complete a prescribed form on which they must detail their income, assets, expenditure and liabilities.

Themba Mthethwa, the Chief Ombud, told Personal Finance that community schemes will have 90 days from the date on which the regulations were published (October 7)

to get their levy-collection systems in order – in other words, schemes will not have to collect levies during the 90-day grace period.

The ombud service will not only provide a dispute-resolution service; it will be responsible for storing and monitoring community schemes’ governance documentation, such as management and conduct rules, constitutions and memoranda of incorporation.

Until now, the governance documentation of sectional title schemes had to be filed at a Deeds Office. If a body corporate amended its management or conduct rules, the amendments had to be filed at the Deeds Office in order for them to take effect. However, the Registrar of Deeds was not required to ensure that the rules complied with the Sectional Titles Act or the prescribed management rules.

Now, all community schemes will have to file their governance documentation with the CSOS, which will check that they conform to the relevant legislation.

All community schemes must register with the CSOS and, among other things, provide a copy of their governance documentation, their latest audited financial statement,

COMMUNITY SCHEMES OMBUD SERVICES CONT. Page 11

the particulars of the people who serve on their executive committee (for example, a board of trustees) and details of their managing agent.

Schemes must, within four months of the end of their financial year, submit an annual return that identifies the members of their executive committee and is accompanied by their latest audited financial statement.

The CSOS is also tasked with educating and informing all community scheme role-players about their rights and obligations.

What type of disputes can the CSOS address?

An adjudicator can issue orders in respect of a wide range of issues arising in the context of community schemes. These include:

• Financial issues – for example, ordering a body corporate to re-calculate or refund a levy, or ordering a body corporate to have its financial statements audited.

• Behavioural issues – for example, ordering that a behaviour, such as playing music loudly, constitutes a nuisance and ordering the relevant person to stop that behaviour, or ordering an animal, such as a pet dog kept in violation of the scheme’s rules, to be removed from the property.

• Meetings – for example, ordering that a resolution adopted at a general meeting of a body corporate or at a meeting of the board of trustees is invalid, or ordering that a resolution passed at a general meeting is void, because it unreasonably interferes with the rights of an owner or occupier.

• Private and common areas of the property – for example, ordering a body corporate to carry out repairs to the common property, or ordering a body corporate

to grant an owner or occupier exclusive-use rights over a certain part of the common property.

• Scheme governance – for example, ordering an association to approve or amend a management or conduct rule.

• Management services – for example, ordering a managing agent to comply with the terms of his or her contract of appointment.

• Access to information – for example, ordering an association to make governance documents or records available to a resident.

The CSOS head office in Johannesburg can be contacted by phoning 010 593 0533 or emailing info@csos.org.za. Visit www.csos.org.za to download a complaint application form.

Acknowledgement: Mark Bechard – PERSONAL FINANCE 8 October 2016

COMMUNITY SCHEMES OMBUD SERVICES CONT. Page 12

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Safety Rules When Swimming

It is reported that 1518 persons drowned in South Africa in 2013 alone. Many of these deaths occur in residential pools and especially young children are at risk. Many deaths from drowning are preventable by following basic safety rules for swimming in pools and natural bodies of water. It is expected that hot and sunny weather often drives people to aquatic recreational sites; hence drowning are more common during the summer months in South Africa.

Just for interest sake, a report pertaining to South Africa specifically suggested that (a) the highest number of drowning cases occurred on a Sunday (as most people engaged in recreational, sporting and leisure activities on that day, we suppose), and (b) interestingly enough, and quite inexplicable was that the second highest percentage of drowning cases occurs on a Tuesday.

A disturbing finding from the report showed that almost 43.6% of drowning cases had positive blood-alcohol levels.

With the hot climate in Rustenburg and since the ‘silly season’ is fast approaching, we would like to share some safety rules with you.

SAFETY RULES WHEN SWIMMING CONT. Page 14

LEARN HOW TO SWIM

However upsetting it might be for parents to observe their babies being “water

proofed” by a professional swimming instructor, it still is a very good idea. Some

people view this training (when babies are dunked under water) to be cruel, but

should the child accidentally fall into a pool, it will immediately turn on its back

until help arrives, as this response is imprinted during the training. It is also

encouraged that children ages 4 years and older are sent for formal swimming

instruction. As for teens and adults, if you don’t know how to swim, learn to do

so and restrict yourself from entering deeper water if there is not a lifeguard in

presence.

SUPERVISE CHILDREN

Children should never be allowed to swim unsupervised by adults anywhere.

Mind if we repeat this? Children should NEVER be allowed to swim unsupervised!

We regularly receive complaints from concerned residents that small children are

swimming in the communal pool without any parental supervision. Sir, Madam:

YOU are responsible for the safety of your children! Please do NOT allow them

to spend time at the swimming pool without you being present. Adults who

are supervising children should remain alert, vigilant and never turn away or

get distracted, not even for a moment. I can attest to that: my baby (who was

wearing a polyotter swimsuit) tipped over and landed face down in the baby

pool, and was unable to get upright due to the flotation devices in the swimsuit.

Had I not noticed, he could have drowned literally centimetres from where I was

sitting with him on the side of the pool!

SWIM ONLY WHEN A LIFEGUARD IS ON DUTY

When swimming in bodies of water other than residential pools, swim only when

a lifeguard is on duty and in areas designated for swimming. Parents of young

children and non swimmers should carefully supervise their children even in

settings where a lifeguard is present. All swimmers should respect the rules for

swimming in a given environment and follow the directives of the lifeguard.

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SAFETY RULES WHEN SWIMMING CONT. Page 15

DO NOT SWIM UNDER THE INFLUENCE OF DRUGS OR ALCOHOL

Need we say more? Even strong swimmers can succumb to the effects of alcohol and

drugs while in the water. Being under the influence of either or both seriously impairs

judgement and coordination and increases the risk of injury or drowning.

NEVER SWIM ALONE

As tempting as it may be to catch some time alone in the backyard pool, deserted lake

or ocean, do not do it. Accidents happen even to young, strong, healthy individuals who

are good swimmers. Always swim with a buddy in a residential pool and with a lifeguard

present in any other pool or body of water.

DO NOT SWIM DURING THUNDERSTORMS

Never swim during a thunderstorm. If swimming in a residential pool, exit the water

immediately when you hear thunder. Lightning often strikes water and water conducts

electricity. If you swim and lightning strikes, you risk serious injury or death.

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SAFETY RULES WHEN SWIMMING CONT. Page 16

AVOID DIVING HEAD FIRST

Do not dive headfirst into shallow or murky water, or water of uncertain depth.

Diving in shallow water can cause injuries and drowning. Many persons are in

wheelchairs today due to diving accidents – do not become part of the statistics!

It is always best to enter the water feet first.

REFRAIN FROM HORSEPLAY IN THE WATER

As fun as it is to swim with friends or family, refrain from horseplay such as

dunking, hanging on to someone or allowing them to hang on to you while in the

water. Horseplay can lead to injury while in the water, thus increasing the risk of

drowning.

USE PROPER FLOTATION DEVICES

Inflatable toys, rafts, air mattresses and water wings should never be used as

lifesaving devices for children - only approved life jackets and life preservers

should be used. Always wear an approved life jacket when boating, even close to

land. This is a regulation and should be followed at all times.

FIRST AID, CPR AND POOL FENCES

It is a good idea for adults, especially those who are parents or who look after

children, to learn basic first aid and CPR. Rescue measures can mean the difference

between life and death, especially for families with residential pools. Regulations

prescribe that residential pools must be sufficiently closed off to prevent children

to enter the area, and self-closing, self-latching gates which are unreachable for

children and that open outward

is a good idea to install.

REMEMBER: SAFETY FIRST!

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“The man who stops advertising to save money is the man who stops the clock to save time” - Unknown

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TEL: 0861 017 424E-MAIL: INFO@THATTOUCH.CO.ZA

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PHOTOGRAPHER’S CORNER

“Tranquility” by Benno Giuliani “Storm Clouds” by Dave Starley, Buffelspoort Dam

Plea

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vpm

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CORNERSince the welcome rain towards the end of

October, we are looking forward to more of the

same over the next few (and most probably,

super hot) months in Rustenburg.

Unfortunately, still no news from the Municipality

regarding the current water restrictions imposed

in our area. As soon as we receive confirmation

we will immediately post it as a newsfeed on the

portal. For this reason we will not be encouraging

gardening activities this month: now is not the

time to (a) plant a new lawn, or (b) stock your

garden with water thirsty flowers – not until we

have received confirmation on the water restriction

situation.

We rather opt to focus on water wastage instead.

With the current drought experienced in our

country it is extremely disturbing to observe

instances where water is wasted. We have

monitored sprayers literally left operating for

hours on end (and in one spot!) which really is

not responsible, neither acceptable. Perhaps it

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is not such a far-fetched idea to deploy “Water Police” to

record these occurrences, hopefully leading to hefty fines

being imposed on the culprits, the municipality included

in instances where water leaks are left unattended for

long periods of time. With the USA also experiencing an

extreme drought (for the fifth year running, apparently),

the authorities in Los Angeles have now even resorted to

deploying drones in an effort to find evidence of water

wastage from the sky!

Many enlightened individuals (okay, let’s refer to them as

the “greenies” amongst us!) refuse to open their showers

unless they have a bucket in the shower which they

use to collect water and then afterwards empty it over

their plants. What a noble thing to do, and just another

example that if all people pull together, every small saving

can make a difference! Every drop counts.

is th

e b

est m

edic

ine

mailto:andrev%40deltromanzi.co.za?subject=Estate%20Magazine%20Enquiry

YOUR QUESTIONS ANSWEREDThe Community Schemes Ombud Service (CSOS) Act sets out how to apply to the CSOS to intervene in a dispute and how the CSOS will try to resolve a dispute if an application is accepted. Here, in brief, are a few things you should know.

HOW THE OMBUD SERVICE CAN HELP YOU

Who can apply to the CSOS for help?

Any person who is a party to, or materially affected by, a dispute relating to the

administration of a community scheme can apply for the intervention of the CSOS.

At least one of the parties to the dispute must be an association (for example, a

body corporate), an owner or an occupier (effectively, a tenant). A “person” is a

natural person or a partnership, trust, corporation, or a private or public entity.

Will I be charged a fee if I want the CSOS to intervene in a dispute?

Yes, there is an application fee of R50. If your dispute is referred to an adjudicator,

there is an additional fee of R100. The application and adjudication fees are waived

if your net (after-tax) household income is less than R5 500 a month. Schemes

and individuals can apply to have their fees discounted or waived by completing

a prescribed form that requires them to provide details of their income, assets,

expenditure and liabilities.

Will every dispute be settled by adjudication?

No. After an ombud has received an application and has afforded the other

parties to the dispute an opportunity to respond, he or she will refer the matter

to a conciliator if the ombud believes there is a reasonable prospect that it can be

resolved by way of a negotiated settlement. If the ombud does not think the case

can be resolved via conciliation, or if the conciliation fails, the ombud will refer

the matter to adjudication. Once an application is referred to an adjudicator, the

ombud plays no further role in resolving the dispute.

Who chooses the adjudicator?

If the application qualifies for a discount or a waiver of the fee, the ombud will

choose the adjudicator. If a fee must be paid, all the parties to the dispute will

have an opportunity to choose an adjudicator from a list drawn up by the ombud.

If they cannot agree on an adjudicator, the ombud will appoint one.

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Am I entitled to legal representation?

Parties to a dispute are entitled to legal representation during the adjudication process only under one of two conditions: either that the adjudicator and all the

parties agree to it; or that adjudicator decides that, based on the nature of the dispute, it would be unreasonable to expect one of the parties to deal with the

adjudication process without legal representation.

How will an adjudicator investigate a dispute?

An adjudicator is expected to observe the principles of due process of law. However, when considering evidence, the adjudicator is not obliged to apply the

“exclusionary rules of evidence” as they are applied in the courts. The CSOS Act states that, when investigating a dispute, an adjudicator “must act quickly, and with

as little formality and technicality as is consistent with a proper consideration of the application”. An adjudicator may request the parties to provide information,

which may be in the form of an affidavit. The parties may also be required to be interviewed in person by the adjudicator. He may call for other parties to make

submissions and inspect common or private property and inspect the records of an association.

YOUR QUESTIONS ANSWERED CONT. Page 24