Educating the community scheme industry in Mzansi for mahala!

The demand for affordable homes near economic hubs is driving the growth of the sectional title development market. Young adults are looking for secure, lock-up-and-go properties, and shared spaces are becoming popular due to their sense of community and affordability. In fact, micro private units in developments with co-working and co-living spaces are on the rise. When it comes to property, the journey from dream to reality can be a maze of uncertainties.

For most people, their home is their biggest and most important asset. However, unlike other big assets, the sectional title home tends to be the least researched and understood asset prior to purchase. That is, sectional title buyers focus heavily on the bricks and mortar of the property but do little to no prior research on the body corporate and legislation that controls the use, maintenance, management, and finances pertaining to their property.

Currently, there are three main Acts that govern sectional title homeownership:

• The Sectional Titles Act
• The Sectional Titles Schemes Management Act
• The Community Schemes Ombud Services Act

In addition to the above, there are various other Acts that also impact sectional title homeowners such as the Protection of Personal Information Act, and the Property Practitioners Act.

A lack of understanding of the complexities and interpretations of the above Acts has immense real-life consequences for sectional title homeowners.

These consequences are clearly visible in the huge number of residential property court cases; CSOS complaints and adjudications; the resistance of unit owners to act as trustees in their body corporate; the lack of adequate maintenance of the common property; reductions in sectional title property values; and finally, poor levels of body corporate administration. To add to this, the above legislation is also regularly amended.

Given the above real-life consequences, there is an urgent need for sectional title education in the homeowner community. But it is also important to consider the type of education needed, the cost of this, and the delivery systems best suited to the information age we find ourselves in.

Property owners and trustees need to be informed about the role players, legislation and procedures involved in the functioning of community schemes to make informed property decisions. TRACS is an educational non-profit organisation born out of the desire to share some of our knowledge gained from over 150 years of combined community scheme experience with the public.

TRACS specialises in providing community scheme-related courses with an overarching objective to “educate an industry”. In their efforts to make the knowledge as accessible as possible, TRACS offers training in five local languages; English, Afrikaans, Xhosa, Zulu and Sepedi. Training is easily accessible on a cell phone, desktop and/or tablet and offers student support to ensure a seamless learning experience.

Their long-awaited “Introductory Guide for Sectional Title Owners” presents the basics of community scheme ownership and management in an entertaining and interactive manner. It deals with essential topics that unit owners, scheme executives and managing agents need to know, including the following:

• Benefits, duties and responsibilities of sectional title property ownership.
• Levies.
• Body corporate meetings.
• Trustees and the chairperson.
• Managing agents.
• Body corporate insurance.
• Community Schemes Ombud Service (CSOS).

The course offers a wealth of valuable knowledge that is sure to contribute to the growth and sustainability of the community scheme industry.

Training can be completed in the student’s own time, and one can log in to the platform at any time to review the concepts. After completion, the student receives an accredited certificate and a downloadable PDF reference guide with all the information. The site also features a resource library offering material related to community living and management. Relevant legislation and CSOS Practice Directives and Circulars are all conveniently provided in one place.BL, together with TRACS believe that everyone with an interest in community schemes has a fundamental right to the information. Therefore, the course and resources on the platform are offered completely free of charge.

For many people, their sectional title unit is their greatest investment, but they lack the know-how on how to make the most of their investment.

TRACS is passionate about “Educating an Industry” and aims to make sectional title training accessible to as many stakeholders as possible. In February 2023 TRACS embarked on a national “Back2Basics – Protect your property investment” roadshow including Bloemfontein, Cape Town, Durban, Rustenburg, George, Johannesburg and Gqeberha to name a few.

Hundreds of owners, trustees and property managers/practitioners had the opportunity to network with and learn from key industry professionals. All these attendees are now equipped to navigate complex living during complex times in South Africa, or at least well on their way.

A paramount revelation that emerged through the hosting and participation in various key industry events, is the pivotal role that education plays in securing property investments, particularly within the burgeoning Sectional Title sector. While drawn to its accessibility and potential, many property investors remain oblivious to crucial role players and legal intricacies within these schemes.

This knowledge gap, if left unaddressed, jeopardises the security of their investments. TRACS emerged as a beacon of guidance, emphasising the importance of understanding the roles and responsibilities within community schemes. Armed with the proper knowledge, investors can not only safeguard their investments but also contribute significantly to enhancing the desirability and value of their community scheme properties. We have collaborated with CSOS and the PPRA, to assist governing bodies in strengthening the industry through training and knowledge development.