Do You need to Change Rules in a Sectional Title Scheme?
All Sectional Title (ST) schemes are governed by two standard sets of rules contained in the Sectional Title Schemes Management Act (STSMA):
- Prescribed Management Rules: Regulate the management and finances of the scheme by the Body Corporate, trustees, and managing agent.
- Prescribed Conduct Rules: Regulate the behaviour of owners and tenants to promote harmonious living (e.g., pets, refuse, parking, or appearance changes).
Making Scheme-Specific Rules
The STSMA allows the Body Corporate (owners) to amend these standard rules or add new ones specific to their scheme.
- Reasons for New Rules: Owners may want rules specific to their scheme, such as:
- Limiting the hours of use for amenities (swimming pool, braai area).
- Limiting the number of guests for social gatherings.
- Governing the behaviour of children in specific areas.
- Prohibiting short-term rentals (like Airbnb).
- Purpose: These amendments are useful for anticipating and eliminating potential sources of disagreement among occupants.
The Formal Procedure for Changing Rules
For any rule change to be enforceable, owners must follow a strict procedure:
- Compliance: The proposed amendment must not conflict with the Prescribed Management Rules.
- Reasonableness: The rule must be reasonable and apply equally to all owners.
- Formal Approval (Special Resolution): The change must be formally passed by a special resolution of the Body Corporate.
- A special resolution requires a vote passed by at least 75% (in value and number) of the votes of members represented at a general meeting, OR agreed to in writing by members holding at least 75% of all votes.
- Notice: If the resolution is taken at a meeting, the Body Corporate must give all members 30 days’ written notice specifying the proposed resolution.
- Filing & Certification: The approved rule change must be approved by and filed with the Community Housing Schemes Ombud (CSOS).
