Real Estate Investor Magazine South Africa August 2013 | Page 34
MANAGING
BY IVAN ZARTZ
Settling Disputes In Sectional Title
What do the rules say?
I
n the event of a dispute bet ween the
registered owner of a unit and the body
corporate, are the parties compelled to go to
arbitration or must the dispute be adjudicated
by a Court? In essence, if an owner challenges
certain charges on his account and the body
corporate disagrees with the basis of the
owner’s argument, must the dispute be referred
to arbitration or must the trustees of the body
corporate issue summons?
The legislative framework relating to the
management and control of sectional title
schemes provides that a scheme shall be
controlled and managed by means of rules
comprising, inter alia, management rules
prescribed by regulation. Rule 71 of the
prescribed management rules provides as
follows:
“Any dispute between the body corporate
and an owner or between owners arising out
of or in connection with or related to the Act,
these rules or the conduct rules, save where an
interdict or any form of urgent or other relief
may be required or obtained from a Court
having jurisdiction, shall be determined in
terms of these rules.”
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August 2013 SA Real Estate Investor
“If such a dispute or complaint arises, the
aggrieved party shall notify the other affected
party or parties in writing, and copies of such
notification shall be served on the trustees and
the managing agents, if any, and should the
dispute or complaint not be resolved within 14
days of such notice, either parties may demand
that the dispute or complaint be referred to
arbitration: Provided that, if an owner declares
a dispute with the body corporate, it shall be
sufficient notice if notification is served on the
trustees and managing agents, if any, and such
owners will not be required to serve notice on
each of the other owners.”
Section 35 (1) of the Sectional Titles Act 95
of 1986 (the Act) provides ]H??[YH?[??H????Y[?X[?Y?Y?HYX[????[\?\????HH]H?\?X?\?Y[??H??B????]K?X??X??H??\?[???HX????X?[??H
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