The advent of the long-awaited Consumer Protection Act makes it even more important now to ensure that every sales agreement for a sectional title property has attached to it a copy of its scheme’s AGM financial statement and conduct rules, says Lanice Steward, MD of Anne Porter Knight Frank.
 
“Although any member/owner of a sectional title property is entitled to these by law, it is surprising how difficult it can sometimes be to get hold of copies of either,” she says.
 
“No buyer of a sectional title unit should sign for such a unit until he has seen these annual accounts,” said Steward, “and, if they are difficult to get hold of, that in itself could be a warning that all may not be well with the scheme.”
 
In many sectional title schemes, said Steward, a poor state of affairs is the result of members showing too little interest in their scheme.
 
“It is,” she said, “regrettable but true that until a scheme gets into serious financial difficulties many members will take a minimal interest in it, often not attending AGMs – where decisions are taken of which they might well have not approved.  It is essential that owners/members become part of the decision making team.  If they “leave it to others” there is always a possibility that incompetent although well meaning trustees could be elected.”
 
A common mistake among those who do attend sectional title AGMs, said Steward, is to insist on the monthly levy being as low as possible.  This, she said, can result in the security, maintenance and insurance on the building all being inadequate, causing its units to depreciate in value. 
 
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.