People living in Community Schemes (‘schemes’) need to be compliant with the CSOS Act, Practice Directives and other relevant legislation.
However, many schemes are often faced with incorrect legal advice given to them at some other stage, and this results in a scheme not only being in violation of the prescripts of the law, but even worse, being non-compliant, which often leads to tension between the Scheme Executives and the members of the scheme.
I have conducted several months of research within the industry and sent out an array of services that may be required, to several managing agents which each manage approximately 200 – 900 schemes. It is clearly evident that the majority of schemes urgently require affordable and reliable advice on the governance and legal structure of a scheme, as well as the drafting of correct scheme governance documentation.
I assist clients daily, who have received incomplete or incorrect advice, or have been provided with a set of poorly drafted rules and a hefty account at the end of the day for equally poor services provided. There is a clear gap in the market, as schemes often struggle to appoint an experienced and professional person to assist them, since many people purport to be experts in the market when this is unfortunately not the case, alternatively the expert’s fees are simply unjustifiably high. There are quite a number of Law Firms that purport to be experts in Sectional Title and Community Scheme Living, however many of these ‘so-called experts’ main area of expertise falls outside this extremely niche market.
I am able to provide a cost-effective and helpful service to players in the property sector, as will be seen from my proposal.
My business module aims to provide the services that a scheme specifically requires – providing targeted and correct legal and legislative advice, drafting rules that will be approved by the CSOS the first time around, chairing meetings that will ensure that no AGM or SGM will result in the meeting being voided or declared invalid, or re-scheduled due to the incorrect legal process not being followed. What I bring to the table is unique in the sense that I have been employed at the CSOS for almost 8 years in a senior management position. In those 8 years, I was responsible for drafting Practice Directives, providing training, education, and awareness to stakeholders nationwide, as well overseeing the entire Governance Business Unit.
I have the knowledge, skill, and understanding of all governance structures and legal requirements that must be implemented in all the different types of schemes. The services that I offer cannot be delivered by the CSOS – the CSOS’s powers are limited in terms of the CSOS legislation; providing advice being one such specific limitation.
I am alive to the fact that schemes do not necessarily want to lodge a dispute at the CSOS. However, should they have received the incorrect legal advice or guidance, or have a set of scheme governance documentation that is riddled with errors and omissions, then their reluctance is well-founded. Disputes can be limited if members of a scheme understand their roles and responsibilities, as well as their rights and obligations, and in addition, their scheme governance documentation is fully compliant, which will ensure a well-run and compliant scheme.
Background
I am a South African Admitted Attorney, Conveyancer, and Accredited Mediator. I Hold both LLB and LLM Degrees. I completed my Masters in Law full-time whilst being employed in a senior managerial position at the CSOS. I have more than 16 years post article experience. My proven expertise and passion for property and real estate law, community schemes, alternative dispute resolution, corporate and scheme governance, compliance and enforcement, mediation, customer complaints, and contract management speaks for itself. I also have an in-depth knowledge of the Constitution of the Republic of South Africa, Companies Act, Community Scheme Ombud Service Act, Sectional Titles Schemes Management Act, Sectional Titles Act, PFMA, PAIA, and POPIA . I have written many articles, and been a guest speaker on multiple platforms and panels discussing these pieces of legislation.
I have drafted the majority of the training and governance structure materials, policies and procedures at the CSOS, and my commitment to the industry has always been my number one priority. It is worth a mention that I have been promoted 5 times over the past 8 years at the CSOS. I feel that the time has come for me to spread my wings and provide a comprehensive, fully functional service to all stakeholders in the property industry.
Services and Fee Structure
1. Drafting of all Scheme Governance Documentation (Management & Conduct Rules, Memorandum of Incorporations, Constitutions, Architectural Guidelines, Resolutions etc).
Language – Both English and Afrikaans
Fees – R2500 to R 3500 per set of scheme governance documentation that I am able to draft, depending on the type and complexity thereof
When – Ad hoc or annually
Turnaround times – 7 Days from the date of receipt of the instruction
2. Drafting of rule created Exclusive Use Areas
Language – Both English and Afrikaans
Fees – R 1750 per set of EUA rules
When – When required
Turnaround times – 7 Days from the date of receipt of the instruction
3. Lodging of a CSOS Dispute Application
Language – Both English and Afrikaans
Fees – R 1000 per application, R 1500 for final submissions for Adjudication
When – When required
Turnaround times – Depending on urgency
4. Training (Including but not limited to Members, Scheme Executives, Caretakers, Accountants, Developers and Managing Agents to name but a few, on the Legislation and Practice Directives).
Language – Both English and Afrikaans
Fees – R 400 per delegate per Scheme or a fixed fee for an entire Scheme agreed upon by the Scheme Executives
When – Ad hoc or annually
Turnaround times – Depending on where training is required
5. General Advice
Language – Both English and Afrikaans
Fees – R 750 for half an hour or R 1500 per hour
When – Daily/ Weekly
Turnaround times – 24 Hours
6. Inspection in loco
Language – Both English and Afrikaans
Fees – R 750 for half an hour or R 1500 per hour
When – Ad hoc
Turnaround times – As and when required
7. Chairing meetings (AGMs and SGMs, Trustees)
Language – Both English and Afrikaans
Fees – R 1500 per meeting (if meeting exceeds 1 hour, then 750 extra per hour thereafter)
When – As and when required
Turnaround times – As and when required
8. Drafting of contracts (for service providers in a Community Scheme).
Language – Both English and Afrikaans
Fees – R 1500 per set
When – As and when required
Turnaround times – 7 Days from the date of receipt of the instruction
Products Explained
Drafting of Rules – this will include but not be limited to, drafting of Managing and Conduct Rules, MOI, Constitutions, and any other Scheme Governance Documents which will be required by the Scheme.
I have been part of the Governance Team that initially drafted the acceptable and undesirable rules that the CSOS applies for Schemes to comply with. Ultimately, all schemes are required by the CSOS Act and Regulations to lodge their Rules to the CSOS to comply with the CSOS Legislation, especially Sectional Title Developments. The CSOS will not issue a Compliance Certificate if the scheme does not adhere to the Constitution, Municipal by Laws and the CSOS Legislation, and ultimately the Rules cannot be enforced if no Compliance Certificate is issued by the CSOS. Schemes will be fined if they are non-compliant. There is thus a huge market to draft Rules for schemes. All the Managing Agents advised me that the schemes under their portfolio require Rules to be drafted or to amend current or old rules which were drafted under the previous Legislation. I can advise the scheme even before the Rules are drafted what the CSOS sees as undesirable rules and to ensure that Rules are not returned with a query or amendments when lodged with the CSOS, and ultimately ensure that the Section 10 compliance certificate is issued within the prescribed period.
Training – Â almost all the Managing Agents asked for training, education, or awareness for the members of the schemes and or the Scheme Executives.
General Advice – Â I receive hundreds of emails per day from stakeholders, attorneys, members, trustees, etc. for advice. A service the CSOS cannot and does not provide. A full mandate should be obtained from the clients and consultation should be held between the client and myself.
All other services as mentioned above can be offered.
Pricing Strategy
Considering my years of experience in the industry as well as the fact that I have access to an immediate client market, my fee starts from as little as R 750 per hour, alternatively a monthly or annual fee which is payable by the scheme. The service will then include everything from general advice to training workshops.
I can also offer a flat fee by prior arrangement. I have realized that the latter will be more feasible, as six managing agents have advised me that they spent in the region of a minimum of R 60 000.00 a month on attorney’s fees per scheme.
Summary
I am well known in the industry and had many stakeholders approach me to provide the services mentioned above, however being employed by the CSOS, there were inherent limitations. As can be seen from the above, there is a dire need for these services.
I am ready to start this journey with you and provide a quality, hands-on, knowledge-based and cost-effective service to all stakeholders in the property sector.
