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Life Right and Sectional Title

By Jonathan Henri on Tue, 06 Mar 2012 at 11:08

Hi, my parents are living in a retirement village where 30% of the units are life right units and the rest are sectional title units? The trustees of this village is currently unsure under which of the act's that regulate Retirement Villages they fall? They currently have a sectional title body corporate which regulates the life right and sectional title units.Does this mean the life right units also fall under the sectional title act? Or do they need to register a life right scheme for the 30% life right unit as they fall under the Older Persons's act? And the developer who owns this 30% life right units how many votes does he have in the sectional title scheme as his units are life right and not sectional title units? So the question is, is his part ofthe sectional title scheme? Thanks

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RE: Life Right and Sectional Title

Anne Greening replied on Tue, 06 Mar 2012 at 12:10

Hi, Johnathan. You have raised this question under two different headings. Please see my reply under the Retired Persons Act topic. My understanding of the situation is that there are now two separate schemes - a Sectional Titles and a Life Rights scheme - which operate individually under the relevent legislation.

RE: Life Right and Sectional Title

Myburgh Brink replied on Tue, 06 Mar 2012 at 20:57

If possible, try and get hold of a copy of the Personal Finance insert in the Argus/Star/Mercury of 10 December 2011. It had an article on Life Rights which might help.

RE: Life Right and Sectional Title

Anne Granada replied on Wed, 07 Mar 2012 at 10:49

New laws affect us all.

Retirement village in SMALL SEASIDE TOWN; old age home, new retirement village being built ( advertised in sunday newspapers) in SMALL SEASIDE , golf estate, calypso, mykono, paradise and others - shark bay?

it is important that reesidents understand the legalities especially if they are being lured into buying in a new retirement Village.
exactly what is being offered?
frail care?
chronic illness care?
or are the older 90 year old simply chucked out in the street?
PLEASE STUDY CAREFULLY.
SOME OF THE PEOPLE WHO BUILD THESE RETIREMENT VILLAGES CLAIM THAT THE ALW SAYS THEY DO NOT HAVE TO PROVIDE NURSING CARE OR FRAIL CARE, FOR INSTANCE WHEN SOMEONE HAD ALZHEIMERS OR PARKINSONS.
INVESTIGATE RETIEMENT COMPLEX BEING BUILT IN BROADACRES AND DOUGLASDALE NEAR fourways, north of sandton and randburg. Please let me know what's what.

RE: Life Right and Sectional Title

Anne Granada replied on Wed, 07 Mar 2012 at 10:52

Does this help:
The Community Scheme Ombud Service Bill, also covers homeowners' associations, shareblock schemes and retirement homes. Other legislation includes the Sectional Titles Amendment Bill (see "Amendment Bill aims to clarify grey areas that often cause conflict") and the Sectional Title Schemes Management Bill. The Community Scheme Ombud Service Bill, could see the ombud's office up and running by early 2011.
The Sectional Title Schemes Management Bill deals with governance issues
This Bill effectively separates any provisions in the current Sectional Titles Act that deal with management and governance and incorporates them in the new Bill. It presents the information "in a more user-friendly format, without changing the substance of the provisions".

The Bill will fall under the Department of Human Settlements, while the Sectional Titles Act, which deals with the survey and registration aspects of sectional title schemes, falls under the jurisdiction of the Department of Rural Development and Land Reform.

The Community Scheme Ombud Service will have a wide range of issues on which he or she can rule.
Some of the orders the ombud will be able to give are:
Ordering a body corporate to take out insurance or to increase the amount of insurance;
Ordering a body corporate to take action under an insurance policy to recover an amount from an insurer;
Ordering a body corporate to adjust a levy that has been calculated incorrectly to the correct amount or to a reasonable amount;
Ordering a body corporate to have its general accounts or its accounts for a specific period audited;
Declaring a sectional title owner's behaviour a nuisance and ordering the guilty party to desist from such behaviour;
If a trustee misuses his position, ordering the trustee to remedy the situation;
If a trustees allows hundreds of visitors to be invited in, in violation of the conduct rules, he can order the owner to remove them;
Ordering a body corporate to call a general meeting to deal with a specific issue;
Declaring a general meeting of a body corporate invalid;
Declaring a resolution made by a body corporate to be void or valid - an application in this regard must be made within 60 days of the relevant meeting;
Declaring a decision made by the trustees to be void or valid - an application in this regard must be made within 60 days of the relevant meeting – this means the minutes of the meeting must be e-mailed to all owners within a week of the meeting;
Declaring a resolution made by the directors to be void or valid - an application in this regard must be made within 60 days of the relevant meeting – this means that no more secret meetings are allowed.;
Declaring a contract to be void and invalid if it was done to enrich one or more directors/trustees.
Declaring the sale of common property to be void and invalid if it enriched one or more trustees.

Ordering a body corporate to carry out repairs and maintenance;
Ordering a person or an owner to carry out repairs; and
Ordering that the body corporate either does or does not have the right to terminate the appointment of a managing agent. 

Once the ombud receives your complaint, he or she may ask you to submit further documentation, or ask for the information you present to be verified, or ask you to provide evidence that attempts to settle the dispute have been unsuccessful.
 
The ombud will be funded by the government, and by levies collected from community schemes and fees paid for adjudication. 

Graham Paddock, of specialist sectional title firm Paddocks and the lead consultant on the Bill to the Department of Human Settlements, says although nothing has been finalised, it is planned initially to introduce an ombud's office in the Western Cape. Paddock says plans are afoot to open the head office soonest.
"There will be adjudicators and other officials permanently employed, but when demand exceeds internal capacity, the excess requirement for the adjudication process will probably be outsourced to suitable persons in the private sphere," he says. 

 "The number of adjudicators in each province will be determined by the demand for adjudication within that area. 

The Minister of Human Settlements, Tokyo Sexwale, is to publish regulations in terms of the Community Scheme Ombud Service Bill that will cover: 

The amount of the levies that will be collected from bodies corporate, and at what intervals such levies will be payable, to fund the ombud service;
Which schemes will be entitled to discounts on or a waiver of the ombud service levies;
The fees payable when you use the services of the ombud; and
The rates of interest on overdue levies and fees.


Amendment Bill aims to clarify grey areas that often cause conflict

The Sectional Titles Amendment Bill, which could have significant implications for the way in which sectional title properties are managed and developed if it is enacted, seeks to address a number of issues that are either not clear or not addressed in the Sectional Titles Act.

RE: Life Right and Sectional Title

Swazi Coetzee replied on Wed, 07 Mar 2012 at 13:57

Suggest you forward your e-mail to info@shireprop.com and shelly@shireprop.com to get good advice on this subject.

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