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.” 32 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 ?H?XY?\???????H?[\??H??YH??H???? ?XH?H?[Y[? YH[?\??][?\?HH??[???[Y[??H?X?[??[?H??[[????\?K[??[??\?\?XJBHHH?H?HYH??HH? ?H???X?H?B??Y?[][??X??[\?X^H?H?X??]]Y ?YY?[Y[?Y??\XHY?HB??]?[?\??[??X?Z][??[?\X?][????H?[?[???H?X?[?[]H?Y?\?\??B?^[??\??X?Y?H?Y?[][?[??X???[\?X^H?H?X??]]Y YY?[Y[?Y???\X[Y???H[YH?[YH?H[?[?[[?\??\??][??H??H???]H\??\??X?Y??H?Y?[][?????'B?[??H[?HZY???? ?H???B??\?Y\???H[YH?Z[???H?][[?[?ZY????H???]H? M?N ? JB?? ?H?U??? M ???\? ? ?KB???\?^?\??YH?[?[?]8?&\??]?][??\???\[??H[?[X]\???\?HH\?]B?^\??[?\??H?[YY??H[YY\??????\][???Y?\??]?][??&K??[?H?\?H???H???]H??Y[?X?\??Y[?X?\?[?] M???[?[??\? ? ? ?H?H M?? ??JN?H?\?[YH??\???\X[[][??\???H?[H ?[H ?JB???\?]K\?H]\??HH\?]K?H??\??[?\?\?][?HX??[??H?H\?]B??$???^[\K?\?H[???\?Y??\?B?[X[???^[Y[??]?Y\???[\H?Y?\?\?]?]?X\???^H[K\?H?[??H??\??]?][?\?\?H\???[????[?\??]?]???]\?Z[?K????˜?Z[XY????B??