Anxiety levels of some Managing Agents and Trustees shot through the roof when the news broke that the long awaited Sectional Title Schemes Managing Act (“STSM” – 8 of 2011) and Community Scheme Ombud Service Act (“CSOS” – 9 of 2011) will come into operation in October 2016. We asked some of the industry leaders and “antique personnel” over the Gauteng region’s Property Management companies what their thoughts are on the industries latest bombshell. The results were as expected, some welcomed it with open arms and others are still on the fence.

Some of the changes in the STSM Act include;

  • Members of a Body Corporate scheme are now not allowed to represent more than two members (that being him/herself and one other member) at an Annual or Special general meeting by way of proxy. Section 6.(5) of the STSM Act.
  • An Executive Managing Agent can be appointed by way of Special resolution “to perform the functions and exercise the powers that would otherwise be performed and exercised by the Trustees”. rule 28.(1) of Annexure 1.
  • Administrative and reserve funds need to be established and maintained to cover the following costs (As per rule 24.(1)and(2) of Annexure 1);
  • (1) “The administrative fund referred to in section 3(1)(a) of the Act must be used to fund the operating expenses of the body corporate for a particular financial year”.
  • (2) “The reserve fund maintained in terms of section 3(1)(b) of the Act must be used for the implementation of the maintenance, repair and replacement plan of the body corporate referred to in rule 22”.

The STSM and CSOS Act consist of the following:


  • The Sectional Titles Scheme Managing Act 8 of 2011;
  • Annexure 1 – Management Rules;
  • Annexure 2 – Conduct Rules and;
  • Annexure 3 – Forms.




  • The Community Schemes Ombud Service Act 9 of 2011 and;
  • The Community Schemes Ombud Service Act 9 of 2011 levies and fees.


CSOS levies work as follow-


Monthly levy charged by the community schemes Monthly CSOS Levy Payable
Zero to R 500.00 R 0.00
R 600.00 R 2.00
R 700.00 R 4.00
R 800.00 R 6.00
R 900.00 R 8.00
R 1 000.00 R 10.00
R 1 250.00 R 15.00
R 1 500.00 R 20.00
R 1 750.00 R 25.00
R 2 000.00 R 30.00
R 2 250.00 R 35.00
R 2 500.00 and above R 40.00


For more info or Property Training dates please contact our offices: // 012 342 3710 .

By Bianca du Plooy

Fitzanne Estates