Real Estate Investor Magazine South Africa April 2015 | Page 36

LEGAL Noisy Generators Generators in complexes generate heated debate BY MARINA CONSTAS S trained power utility Eskom has been warning South Africans to expect load shedding for at least the next two years. Many homeowners and businesses are now hurriedly purchasing generators. ‘Gennies’ are fast becoming a necessity in South African homes. Their installation in sectional title complexes, however, is the subject of heated debate. “If trustees and homeowners arm themselves with the facts, a generator can be an invaluable acquisition for every sectional title development, aiming to adapt to load shedding,” stresses Marina Constas, Director of BBM Attorneys. “Trustees must investigate all options and attempt to purchase the generator with the lowest noise levels.” Her first word of advice is that it is preferable to have one generator for the complex as a whole, rather than permitting individual owners to have their own generators. Once this has been agreed upon, question whether the complex buying the generator is making a ‘necessary’ or a ‘luxurious’ improvement to the development. Different resolutions are required for each type of improvement, according to the Sectional Titles Act. “If it is a luxurious improvement, then a unanimous 34 April 2015 SA Real Estate Investor resolution is required in terms of Management Rule 33 (1),” Constas explains. “If the generator is seen as a necessary improvement, then a special resolution is required, and the complex must comply with the procedure set out in Management Rule 33 (2). Among the stipulations is that owners must receive all the costs at a special general meeting. They will need everything in front of them before they are able to decide, and take the special resolution,” she notes. “A special levy may then be imposed for the generator’s service and maintenance,” she adds. Constas believes that in light of the security risks posed by electricity outages and load shedding, an immovable generator is a necessity. She elaborates: “A complex’s security systems are generally dependent on the electricity supply. Electric fencing, alarms, electric gates and intercoms may be affected if there is a power outage, and homeowners are put at risk. For this reason, a generator must, in most instances, be viewed as a necessary improvement to the sectional title scheme.” When it comes to generators, however, not all units are created equal, and in a complex in particular, the noise emitted is a significant consideration. Constas recommends that trustees must investigate all options and attempt to purchase the generator with the lowest noise levels. “The generator must be stored where it will cause the least amount of nuisance to all homeowners in the scheme, and where the fumes will not affect the owners,” she concludes. RESOURCES BBM Attorneys www.reimag.co.za