Do the owners, trustees and bodies corporate of sectional title schemes and the shareholders of shareblock schemes have the powers to make any rule?
They can introduce any rule or "law" to regulate the conduct of all owners, tenants and visitors, or to manage the scheme, as long as these are lawful and do not interfere with the rights of others.
Shareholders have a "use agreement" that gives them personal occupational rights and the right to conclude lease agreements.
A well-run scheme is always linked to good management.
It is common to outsource the management of the scheme instead of employing or using the services of one of the owners or shareholders. In fact, it is preferable to have an independent person or agency managing the scheme.
There are several buildings in the inner cities, unfortunately, managed by autocratic persons.
Armed with some knowledge of the Companies or Sectional Titles Act, they make rules and execute these with cunning impunity since the shareholders, owners or trustees have no time to familiarise themselves with the relevant laws and rules.
Such autocrats become the actual trustee/supervisor and the law enforcer, creating havoc to the lives of the shareholders owners, tenants and visitors.
They even succeed in becoming directors of shareblocks or trustees of sectional title schemes, earning salaries for the several roles they dexterously assume.
Efficient estate and managing agents and landlords complete background checks on their prospective tenants.
Some landlords and agents enter into agreements that explicitly identify what is expected of the agents and the duties of the landlords: advertising and procuring a tenant, completing a detailed background check, checking on the commission to be paid to the agent, concluding the lease and managing the property are often included in an agreement or mandate.
Parties are clear about their roles, duties and diligence requirements.
Similarly, owners, trustees and shareholders ought to establish exactly what they require from the prospective manager. He or she cannot be a supervisor and a trustee or shareholder, the contractor or maintenance person.
If the role and responsibilities are not defined clearly and in writing, bullying, conflict, mismanagement and havoc will eventually engulf the scheme.
Here are some points to note for an effective and successfully run scheme:
Owners, shareholders, trustees and everyone involved in a sectional title or shareblock scheme should remember that the relationships and rights of people are more important that the dwelling or unit.
Source: Chairman, Organisation of Civic Rights