New nightmare for sectional title owners

ANONYMOUS writes:

ARE you aware of the effect of the new Community Schemes Ombud Service (CSOS) Act, that was quietly passed into law on October 7?

I am no expert but this is a law that shouldn’t be: not in its current form.

As a sectional title owner (different amounts apply to different types of community schemes), if your monthly levy is R1 000, be ready for an increase of at least R10 a month. Not much. That’s true.

How many sectional titles in South Africa? Around 800 000 units at the lower end of the market at R10 average a month per title equals R8 million income to the office of the Ombudsman for doing what? Mainly to resolve disputes between neighbours/owners-tenants/occupants-managing agents/trustees.

Why must disputes be resolved? Because people have been allowed to squat in inner city apartment blocks/sectional title units and people have been allowed to not pay their accounts (which includes already consumed water, electricity, sewage, rubbish removal and compulsory insurance). In many cases the owners have abandoned the buildings/units.

Health and safety in such buildings/units have become a huge problem. The problem of allowing squatters/non-payers has come back to bite the government. And now, me and you, the quiet, law-abiding, paying citizen is being milked yet again to solve a problem we did not create.

The R10 per unit per month for the office of the Ombudsman is just the beginning. The Ombudsman is entitled to increase this levy to any amount at any time. In the case of my sectional title, from the date I became aware of this proposed legislation to it becoming an Act, the escalation in the amount payable by me is 47%. In one short year!

There must now be a separate bank account for the reserve fund (bank costs equal a levy increase) and a separate set of books kept for the reserve fund (administrative costs equal a further levy increase).

Sectional title owners (body corporate) are being compelled to take out additional fidelity insurance. Only a levy increase can fund this additional expense. You, the owner, are going to pay this increase.

A 10-year plan must be drawn up every year. Can you do this? No? Well, then architects/engineers/project managers will have to be employed. The result will be a serious levy increase.

Various sets of documents must be submitted to the office of the Ombudsman. No managing agent is going to do this for free: they will probably have to hire additional staff to cope with the extra workload. The result: a further levy increase for the innocent sectional title owner.

If, like me, you own a property in a sectional title where trustees have at no cost to anyone administered the complex so well that maintenance is done on an ongoing basis without any special levies being collected and the reserve fund is much more than that required by the Act, at least you will be spared the required additional 15% levy increase to built up the reserve fund.

And so the list continues. So don’t be fooled with the “only R10”: be ready for at least another R200 a month. To achieve what? Create a pool of income in the office of the Ombudsman.

In conclusion: I have just resigned as trustee (chairperson) of my body corporate. In my opinion, the only way to have an effective protest is for all trustees to resign. Then no managing agent can be authorised to register any body corporate with the office of the Ombudsman.

Let us all refuse to pay. Let us, sectional title (community scheme) owners, have our own, civilised, “fees must fall” or “no e-tolls” campaign. Do not pay this levy and do not get caught in the web of administrative costs and restrictive processes imposed by this Act.

It is the only way to stop feeding an ineffective administrative monster. Without any income, the office of the Ombudsman will be unable to “settle disputes” with our money.

Let us unite and stop this madness. Do not give permission to register. Do not pay.