Analysis of conflict in managing sectional title properties

Abstract

The aim of this study was to establish whether or not conflict existed in residential sectional title schemes and if so the causes thereof. Residential sectional title properties, unlike conventional residential freehold properties, imposed co-ownership, co-management and expense sharing amongst owners in this type of development. This means that owners in this development are not just owners of sections that they purchased and exclusively occupied, but they were also jointly responsible for the administering, controlling and managing of the common property in the scheme in which they had become owners. This dissertation revealed that, despite their popularity, sectional title properties might be marked by conflict which can affect the smooth and efficient operation of this type of property ownership. Causes of conflict include violation of the scheme rules by owners or residents, trustees' failure and/or refusal to adhere to their bodies' corporate rules, conditions or restrictions, financial mismanagement or misappropriation by the trustees and managing agents, power struggle amongst individuals over the control of the body' corporate resources, lack or poor understanding, amongst owners and their trustees, of how this type of development works, and disrespect of the bodies corporate and its members by their managing agents. This study suggests compulsory information disclosure to prospective and current owners regarding the requirements and obligations of owners in this type of development. Further, that there should be regular and compulsory trainings for the trustees. Accordingly, the study suggests how conflict in multi-owned properties can be mitigated and ensured that the ownership of this type of property can be protected.