This week our reader’s letter deals with the management and conduct rules in a sectional title complex.<\/p>\n
He understands that, while these rules are absolutely necessary, prospective buyers do not always know what they are getting themselves into when buying in a complex.<\/p>\n
As a trustee of the body corporate in charge of the complex where he resides, he has devised a way to ensure that all parties concerned in the sale process are fully aware of the complex-related rules and facts.<\/p>\n
In his view, the seller and estate agent are both responsible for informing a prospective buyer of the set of rules applicable to a complex.<\/p>\n
He feels, however, that if the new owner only receives a copy of the rules from the transferring attorney, he or she may be in for a bit of a surprise at this late stage.<\/p>\n
In light of the above, the reader and his fellow trustees have determined that the estate agent representing the seller should obtain a copy of the relevant conduct rules from the managing agent of the complex.<\/p>\n
These rules can then be made available to the potential buyer for inspection and consideration even before signing an offer to purchase.<\/p>\n
It is important for the rules to be presented to a prospective buyer as they generally regulate both conduct and obligations, says Grant Berndt from Abdo & Abdo Attorneys in East London.<\/p>\n
“Conduct rules not only regulate the behaviour of owners and occupiers with regard to the scheme’s common property, but also their behaviour within their respective sections.”<\/p>\n
Berndt says the rules are not only applicable to the owner of a unit, but also to tenants and even their guests.<\/p>\n
“A standard set of rules can be found in the annexure to the Sectional Title Act, but it is possible to amend these.”<\/p>\n
The conduct rules deal with issues ranging from the keeping of animals, refuse disposal, vehicles, signs and notices to letting of units and alterations to the common property, says Berndt.<\/p>\n
When a prospective buyer is thinking about investing in a sectional title complex he or she should consider a number of factors, says Brian Kinnear, principal of Fresh Lifestyle Properties in East London.<\/p>\n
“Some of the questions that should be asked include what exactly the unit will comprise and what the monthly levy will be.”<\/p>\n
According to Kinnear, the buyer should also inspect the financial statements of the scheme, check its insurance policy and examine the management and conduct rules applicable.<\/p>\n
“It is clear therefore that a substantial burden rests on the prospective buyer to make sure that he or she knows exactly what lies in store.”<\/p>\n
It is commendable that our reader and the other trustees have taken certain steps to ensure that the new owners are fully aware of the conduct rules, says Kinnear.<\/p>\n
“However, the responsibility does not lie squarely on their shoulders. The ‘buyer beware’ principle is equally applicable.”<\/p>\n
Send your property related questions to pr@fullstopcom.com or join Property Poser on Facebook.<\/p>\n","protected":false},"excerpt":{"rendered":"
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