STSM Act – are you compliant?

 

The obligations applicable to community schemes became effective 7 October 2016, as detailed hereafter:

Applicable to sectional title schemes only:

  1. STSM act 2011 regulation 22
    •  Prepared a written maintenance plan.  This applies to sectional title schemes only. Need a LTMP?
  2. Stsm Act 2011 Regulation 24
    • Established a reserve fund, opened a separate bank account for, submit a separate budget for and submit separate financial statements for, the reserve fund.
    • limits the use of funds to activities/events to those provisioned in a LTMP
  3. Stsm Act 2011 Rule 25
    1. Long-term term maintenance plan should be presented with financial statements at the AGM
    2. Auditors must validate the LTMP and adherance to rule 25.

Other compliance applicable to all community schemes

  1. Register the community scheme with CSOS. This is detailed in regulation 18(3) of the CSOS Act. Applies to all community schemes such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association.
  2. Lodge the community schemes governance documentation with CSOS. This is detailed in Regulation 16 of the CSOS Act. Applies to all community schemes such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association.
  3. File the community scheme’s annual return and annual financial statements within 4 months of the scheme’s financial year-end with CSOS. This is detailed in regulation 18(1) of the CSOS Act . Applies to all community schemes such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association.
  4. Pay CSOS on a quarterly basis the CSOS levy (fee). This is detailed in regulation 11 of the CSOS Act . This applies to all community schemes, such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association.
  5. Insure against risk of loss against any act of fraud or dishonesty committed by an insurable person.  This is detailed in regulation 15 of the CSOS Act . This applies to all community schemes, such as, but not limited to, a sectional title scheme, a share block company, a home or property owner’s association.
  6. Notify CSOS, the Local Municipality and the Local Registrar of Deeds of the community Scheme’s domicilium. This is detailed in section 3(1)(o) of the STSM Act. This applies to sectional title schemes only.

 

 

Complete acts:

STSM act 2011

CSOS act

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