Paddocks Press is a monthly free digital newsletter published to educate and update the sectional title community. The issue (Volume 9, Issue 2) has a number of articles of interest, including:
Debt Collectors Act - Prof Graham Paddock
Application of the Debt Collectors Act to Managing Agency
For some time there has been confusion as to whether managing agents must register with the Council for Debt Collectors and operate a separate trust account under the provisions of the Debt Collectors Act, 114 of 1998 ("the DCA"), in addition to the trust account they must operate under section 32 of the Estate Agency Affairs Act, 112 of 1976 ("the EAAA").
In this article, Graham informs readers of the recent settlement of this matter.
Trustee Consent - Anton Kelly
Invalid Trustee Consent
In our experience, most permissions given by trustees are not valid. The Sectional Titles Act, 1986 (“the Act”) and the prescribed rules specify that trustee consent is required for several processes and that consent must be in writing. These written consents must be signed by two trustees or one trustee and the managing agent, but are dependent on a trustee resolution authorising the consent.
In this article, Anton describes trustee consent in terms of Prescribed management rule 27.
Thinking inside the box - Blog post - Jennifer Paddock
Reserve Funds - What you Need to Know
Once the Sectional Titles Schemes Management Act comes into force Reserve Funds for bodies corporate will be mandatory and the Minister will prescribe mandatory minimum amounts. This means that the lax attitude most bodies corporate in South Africa have been taking towards reserve funds will no longer be an option.
In this article, Jennifer explains what Reserve Funds and Reserve Fund Planning is and provides 4 steps to Developing a Reserve Fund Plan.
Paddocks Club Q and A - Paddocks Club Team