Most buyers who are considering a Sectional Title property know by now that they should first check how much the monthly levy is and what it covers before making an offer to purchase. However, they should also ask for a copy of the conduct rules specific to the complex they are interested in, says national estate agency group, because these may not be the same as the Prescribed Conduct Rules annexed to the Sectional Title Schemes Management Act (STSMA). “The Prescribed Rules are a standard framework designed to ensure that the behaviour of owners and occupiers complies with various sections of the STSMA, but the trustees of Sectional Title schemes can - and often do - make additional rules to address particular issues or needs in their own schemes. “In a complex with a swimming pool, for example, they may make a rule that it cannot be used late at night. They might also make a specific rule about how visitors’ parking is to be used, or a rule about how residents are expected to dispose of their garbage, or even a rule about what fines can be imposed for infringement of the other rules.” Any such changes or additions to the Prescribed Rules do need to be approved and registered by the Community Housing Schemes Ombud before they can be enforced, he notes, “but even so, conduct rules can vary significantly from scheme to scheme, and prospective buyers really do need to check them out to see that they would be comfortable complying with all of them. It will be too late to object once they have bought their home”. In addition, prospective buyers should ensure they are familiar with the approved Participation Quota (PQ) schedule for any Sectional Title scheme they are interested in, because in most schemes, this forms the basis of how the levies, reserve fund contributions, any additional charges and any levy increases are calculated. The basic premise of Sectional Title schemes is that the levies and other costs payable by the homeowners in the complex should be in direct proportion to the size of each unit as a percentage of the whole scheme (the PQ).
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