The question now for administrative agreements concluded before October 7, 2016, which are currently in use and can still be used for several years, is the validity of the automatic extension clause from one year to the next after the end of the original year. The above is only a very short summary of a very complex legal area. If you have any disputes with your organization or manager, we advise you to contact a lawyer with Requite`s expertise in sectional title law, as this can be very easily misunderstood, which could prevent you from achieving the desired results. In this article, we will take a look at how executive agents are appointed in sector securities systems and the termination of the management agreement concluded. Moreover, the new rule regarding the new PMR 28 (7), and in particular the wording ”despite a provision of the administrative agreement or another contrary agreement”, is clear, since the termination takes place only 2 months after the approval of a special resolution at a general meeting, although any other agreement can say otherwise. There are provisions of the STSMA, regulations and PMRs that provide that general meetings and SDFs are held electronically or with no notice or less than expected, or even cancelled if all agree with certain decisions that can be taken in opposition instead of a formal meeting. However, they apply in very limited cases. The purpose of the general meeting waiver provision is to enable successfully managed systems, where there are few conflicts between members, to avoid the costs and difficulties of holding a general meeting. Until October 7, 2016, managing agents could enter into management contracts with Bodies Corporates for one year.

At the end of the initial period, agreements would be automatically renewed from year to year. This issue was resolved by Administrative Rule 46 of Sectional Titles Act 95 of 1986. As of October 7, 2016, mandatory management rule (PMR) 28 was introduced up to the 2011 Sectional Titles Schemes Management Act (STSMA) 8 to replace PMR 46. The new PMR provides that administrative arrangements can apply for up to three years. However, PMR 28 does not provide for an automatic extension of this agreement, which was concluded between the parties after the initial deadline had expired. Once you buy a property in a sector securities scheme, you automatically become, by law enforcement, a member of the company`s company. You cannot buy a property in a section title scheme and then refuse to become a member of the organization. You will be automatically bound by the organization`s rules, whether you received a copy before you bought the owner or not, and whether or not you accepted it. Members of sectoral plans who pay a fee of more than R200.00 per month are legally required to pay a monthly R40.00 contribution to CSOS. The CSOS tax is included in the monthly levy that owners pay to their administrator in return for the above functions.