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The views and expressions of these articles are not necessarily that of NAMA. All information and advice provided by NAMA or any representative of NAMA is provided as general information or advice and should only be used as such. The use of such information or advice is at the users’ own risk and should not be considered as a formal opinion or be considered as legal advice or legal opinion of any kind. NAMA will not be held liable for any damages, losses or causes of actions of any nature whatsoever arising from the information or advice given.

Article by ALAN LEVY from Alan Levy Attorneys (ALA), Notaries and Conveyancers.

Up until 7 October 2016, Managing Agents were able to enter into management agreements with Bodies Corporates for a period of 1 year. At the end of the initial period the agreements would automatically renew from year to year. This was regulated by Prescribed Management Rule 46 to the Sectional Titles Act 95 of 1986. From 7 October 2016, Prescribed Management Rule (PMR) 28 to the Sectional Titles Schemes Management Act (STSMA) 8 of 2011 was introduced as a replacement to the PMR 46. The new PMR provides that management agreements may be for a maximum period of 3 years. However, PMR 28 does not make provision for the automatic renewal of this agreement entered into between the parties at the expiry of the initial period.


Two very important questions are asked in respect of the Fidelity Fun Cover by managing agents and schemes under the new Acts:

  • Managing Agents currently make from their trust accounts contributions to the EAAB, Fidelity Fund
  • Now the new Act requires the additional cover

The questions:

  1. There now seems to be a duplication on the cover, will this not be over insured risk and is two covers allowed?
  2. Who is liable to pay for the additional cover, managing agent controlling the funds or the Scheme? The EAAB fidelity fund certificate provides a limited amount of comfort, very limited, as it will only cover funds held in trust and the deeds perpetrated by the named estate agents?

Short answers:

  1. There is not a duplication as the EAAB FFC does not adequately provide cover.
  2. The community scheme itself.

Due to the increasing shortage of land for urban housing development, future housing developments will inevitably have to resort more and more to the sectional title solution. This also applies to some extent to developments other than residential. And it applies to all sectors of society where a need exists for formal ownership, in contrast to informal housing.


Should A Managing Agent Register As A Debt Collector In Terms Of The Debt Collectors Act?

- Article by Jaco Heunis from Du Plessis & Eksteen Attorneys

The question to this answer depends on whether a Managing Agent “receives” or “collect” a levy on behalf of a Body Corporate or a Home Owners Association. Managing Agents, who “receive”, as opposed to “collect” money before, on or after the due date thereof, are not debt collectors, even if a fee is specifically charged for doing so in addition to the normal commission or fee the Managing Agent charges.

EAAB Announces New Consumer Protection Initiative

The Estate Agency Affairs Board (EAAB) is launching a new initiative designed to help consumers distinguish between illegal operators and legitimate estate agents. This initiative aligns with our key mandate of regulating estate agents in the interest of protecting housing consumers. The EAAB is mindful of widespread negative publicity arising from the very real risk of unregistered estate agents to members of the consuming public and other interested stakeholders.

Audit reports: some thoughts for trustees and managing agents

As enterprises grew in size over the past few centuries, the active involvement of business owners in the day-to-day management of businesses started declining, and a separation of ownership from control became the prevalent condition. The owners needed a certain degree of assurance regarding the financial and management aspects of the business, since it was now being managed by “professional managers” on their behalf. The same need arose in cases where individuals paid money over to an “agent” (e.g. to an attorney for the transfer of property), and the funds had to be kept in trust on their behalf. In these and many other examples, the need for an audit arose, where the auditor had to provide a certain level of assurance.

“Executive Managing Agent” is defined as “a managing agent appointed to carry out all the functions and powers of the Trustees in terms of Rule 28”.

Author: Elmo-York Stuart -  EY STUART INC.

The Management Rules, Annexure 1 to the draft Regulations as published under the Sectional Title Schemes Management Act, Act No. 8 of 2011 (“STSM Act”) provide for the appointment of an Executive Managing Agent.

EAAB Regulations FFC Registration fees

The following fees according to the final regulations gazetted by the Minister on 26 February 2016


Communication to our members in 2015 refer.


On 4 April 2016 NAMA, as a stakeholder, had the opportunity to engage with the COS in a follow up session on the draft regulations.

Levy collection - In light of the Sectional Titles Act, the Sectional Titles Schemes Management Act, and the Community Schemes Ombud Service Act

 - In light of the Sectional Titles Act, the Sectional Titles Schemes Management Act, and the Community Schemes Ombud Service Act

Author: Zerlinda van der Merwe - Paddocks

In this article, I will unpack the similarities and differences between the Sectional Titles Act 95 of 1986 (“the STA”), the Sectional Titles Schemes Management Act 8 of 2011 (“the STSMA”) and the Community Schemes Ombud Service Act 9 of 2011 (“the CSOSA”), relating to levy collection in sectional title schemes. In doing this, we will take a look at the function of the trustees in determining and raising levies, the expenses which levies relate to, the types of levies and contributions recoverable, and the process of recovery of levies.

Fidelity and New Proposed Regulations

Court Orders Disconnection of Owner’s Utility Supply: Non-Payment of Levies and Utilities

NAMA Charity Golf Day in aid of “Defend with Integrity”

Cape sectional title market in sizzling form

Just who manages your managing agent?

Electricity billing of COJ under the spotlight again