New regulations for South African sectional titles will take effect April 3, 2025. The changes limit proxy representation to two owners per proxy, require minimum liability insurance of R10 million, and introduce paid executive managing agents. Schemes must make quarterly contributions to the Ombud service based on levy rates, capped at R40 per unit. These amendments aim to modernize property management while increasing owner participation. The transformation impacts everything from deed registration to financial structures.
Thousands of sectional title property owners in South Africa will face significant changes next year when new regulations take effect on April 3, 2025. The amendments, published in Government Gazette 52208 on March 3, 2025, will become operational one month after their gazetted publication, following standard legislative timelines.
These changes build upon previous legislation, including the 2011 Sectional Titles Schemes Management Act and the 2016 Community Schemes Ombud Service Act. The new regulations will replace Sections 17, 19, and 21 of the original 1986 Act, focusing primarily on deed registrations and cancellations.
The 2025 amendments build upon a decade of reform, overhauling key sections of the original Act to modernize property registration processes.
Under the new rules, sectional title deeds involving alienated common property must now be re-registered using Form H, while expropriated properties will use Form AU. The Registrar will cancel original sectional title deeds after issuing certificates as required by the Act. As detailed in the amendment, there will be specific requirements for endorsements and entries on all registered deeds to ensure proper documentation. Regulation 38 now allows for multiple methods of making endorsements, which must be signed, dated, and initialed by the registrar.
One of the most notable changes affects how owners vote at meetings. Previously, a single proxy could represent multiple owners, but the new regulations cap this at just two owners per proxy. This change may create challenges in reaching meeting quorums and will likely require more direct participation from property owners.
The amendments also allow for the appointment of executive managing agents with fiduciary duties. This shift moves tasks from unpaid trustees to paid professionals who must report to trustees quarterly. Managing agents will now handle day-to-day operations, which increases both their liability and fee structures.
Despite this delegation of responsibilities, trustees will retain their oversight duties to guarantee compliance with the new regulations.
The changes also grant owners reconsideration rights, allowing them to revisit resolutions after meetings, which enables broader participation in decision-making.
Financial impacts include mandatory quarterly contributions to the Ombud service based on levy rates, capped at R40 per unit, with units at or below R500 being exempt. Schemes must also carry minimum liability insurance of R10 million, which could affect budget allocations for previously uninsured schemes.
The regulatory changes may lead to the need for special levies to fund Ombud fees, insurance, or managing agent costs. However, the new structure aims to encourage more direct involvement from property owners in scheme management.
The amendments will impact various stakeholders, including auditors, accountants, conveyancers, trustees, and property owners within sectional title schemes.
With just over a year until implementation, affected parties have limited time to understand and prepare for these significant changes that will transform how sectional title schemes operate in South Africa.
Conclusion
The new 2025 sectional title laws mark a turning point for South African property owners. These changes will modernize aged regulations, improve transparency in body corporate management, and strengthen owners’ rights. While implementation challenges remain, officials are confident the reforms will create safer, more equitable housing communities. Property experts advise owners to prepare for these significant changes in the coming months.
