In South Africa, Section 2 of the Sectional Title Schemes Management Act of 2011 (the Act) requires developers to attend the First General Meeting (FGM) and present necessary documentation to the corporate body. However, non- compliance with standards and incomplete submissions by developers often lead to the postponement of the FGM. This results in financial burdens for the body corporate and the signing of long-term contracts without proper oversight. The impact of this non-compliance has not been investigated, highlighting the need for further investigation to improve handover procedures under the Act. Thus, this study aims to inform current policies and contribute to the literature on the handover process of residential sectional title properties. Adopting a case study approach, the research integrates mixed methods to collect data from seven sectional title schemes in the Western Cape and Gauteng Provinces. Findings reveal that developers’ non-attendance at FGMs causes communication breakdowns with Body Corporate, rendering FGMs ineffective. This paper provides valuable insights for policy on sectional title purchases in South Africa. It also contributes to the literature by examining the challenges in the handover processes of sectional title properties in South Africa.

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First General Meetings and the Handover Process: An Analysis of Developers Compliance with South African Sectional Title Schemes

  • Balebetse H. Skele,
  • Partson Paradza,
  • Benita G. Zulch,
  • Joseph A. Yacim

摘要

In South Africa, Section 2 of the Sectional Title Schemes Management Act of 2011 (the Act) requires developers to attend the First General Meeting (FGM) and present necessary documentation to the corporate body. However, non- compliance with standards and incomplete submissions by developers often lead to the postponement of the FGM. This results in financial burdens for the body corporate and the signing of long-term contracts without proper oversight. The impact of this non-compliance has not been investigated, highlighting the need for further investigation to improve handover procedures under the Act. Thus, this study aims to inform current policies and contribute to the literature on the handover process of residential sectional title properties. Adopting a case study approach, the research integrates mixed methods to collect data from seven sectional title schemes in the Western Cape and Gauteng Provinces. Findings reveal that developers’ non-attendance at FGMs causes communication breakdowns with Body Corporate, rendering FGMs ineffective. This paper provides valuable insights for policy on sectional title purchases in South Africa. It also contributes to the literature by examining the challenges in the handover processes of sectional title properties in South Africa.