StraPlex | South Africa
Sectional Title and the Body Corporate
In South Africa, flats, townhouses and duplexes with shared parts can be owned under sectional title. Each owner holds a section and a share of the common property, and all the owners form the body corporate, run by trustees. The Sectional Titles Schemes Management Act 8 of 2011 (STSMA) and its 2016 Regulations set the rules, and the Community Schemes Ombud Service (CSOS) resolves disputes.
The short answer
- A body corporate is established when any person other than the developer becomes an owner of a unit, and every owner is a member.
- Each section has a participation quota, which sets its share of levies, its share of the common property and the value of its vote.
- The trustees run the body corporate. In a scheme with fewer than 4 owners of primary sections, every owner is a trustee without election.
- No managing agent is required unless bondholders over 25% of the primary sections or the members require one.
- Every scheme keeps an administrative fund and a reserve fund, insures the buildings at replacement value, and has its accounts audited unless one person owns every section.
Sectional title in plain words
- Section: a part shown on the sectional plan. A primary section is for living, working or another allowed use; a utility section is an accessory such as a garage, storeroom or parking bay.
- Unit: a section together with its undivided share in the common property.
- Common property: the land and the parts of the buildings not in any section.
- Exclusive use area: a part of the common property kept for the owner or owners of one or more sections, shown on a plan in the rules.
- Participation quota: each section's percentage on the sectional plan. In a scheme for homes only, it is the section's floor area divided by the floor area of all sections, to four decimal places (Sectional Titles Act s 32, as amended in 2022).
What the body corporate does
The body corporate enforces the rules and is responsible for "the control, administration and management of the common property for the benefit of all owners" (STSMA s 2(5)). It can sue and be sued in its own name, and the Companies Act, 2008 does not apply to it. Its functions are carried out by the trustees, subject to the Act, the rules and directions given at a general meeting (s 7). Each trustee stands in a fiduciary relationship to the body corporate.
The developer must call the first meeting of members within 60 days after the body corporate is established, and hand over the sectional plan, a rates clearance from the municipality, building plans, warranties and the accounts from first occupation (s 2(8); Management Rule 16).
Rules for 2 to 6 units
Our own reading of Management Rules 5, 12 and 19 and the special resolution in STSMA s 1 (at least 75% in value and in number), assuming each section is a primary section with a different owner.
| Sections | Trustees | General meeting quorum | Special resolution (if all are represented) |
|---|---|---|---|
| 2 | Both, without election; no chairperson rules | Two thirds of votes in value, at least 2 present | Both members |
| 3 | All 3, without election | Two thirds of votes in value | All 3 |
| 4 | Elected at the AGM (the rules do not cover exactly 4) | One third of votes in value | 3 of 4 |
| 5 | Members set the number | One third of votes in value | 4 of 5 |
| 6 | Members set the number | One third of votes in value | 5 of 6 |
Duties that apply even to a small scheme
- An AGM within 4 months of each financial year end, unless every member waives it in writing and agrees in writing to all the business.
- An administrative fund and a reserve fund, with a minimum reserve contribution set by Regulation 2.
- A written 10-year maintenance, repair and replacement plan for the common property.
- Building insurance at replacement value, a replacement valuation at least every three years, public liability cover of at least R10 million, and fidelity cover.
- Audited financial statements within four months of the year end, unless one person owns every section.
- Registration with CSOS, an annual return within 4 months of the year end, and the quarterly CSOS levy.
Read from the Government Gazette copies on gov.za and the Community Schemes Ombud Service's 2025 practice directives on 31 October 2026. The Department of Human Settlements' 2026-27 plan lists amendment Bills for both Acts as still being drafted; none was law when we checked.
Common questions
What is a sectional title? +
A form of ownership where you own a section of a building or development and an undivided share of the common property, in proportion to your participation quota. The owners together form the body corporate.
What is a body corporate? +
The legal body of all the owners in a sectional title scheme. It is established when any person other than the developer becomes an owner of a unit, and it controls, administers and manages the common property for all owners (STSMA ss 2(1) and 2(5)).
What is the body corporate meaning in sectional title? +
It means the owners acting together. The body corporate must carry the name "Body Corporate" with the scheme name and number, and its powers are exercised by trustees.
What is the STSMA? +
The Sectional Titles Schemes Management Act 8 of 2011, in force from 7 October 2016. With its 2016 Regulations, including the Prescribed Management Rules and Conduct Rules, it sets how sectional title schemes are run.
What is a participation quota? +
Each section's percentage, shown on the sectional plan. It sets the owner's share of administrative fund levies, share of the common property and vote value when votes are counted by value.
Does a small body corporate need a managing agent? +
No. The trustees run the body corporate. It must appoint a managing agent only if a bondholder of 25% in number of the primary sections or a resolution of members requires it (Management Rule 28(5)).
Who are the trustees in a scheme of 2 or 3 units? +
Every owner. If a body corporate has fewer than 4 members who own primary sections, each member is a trustee without election (Management Rule 5(2)).
Must a small body corporate be audited? +
Yes, unless all the sections are registered in the name of one person (Management Rule 26(4)). The auditor must be independent and finish within four months of the year end.
What is CSOS? +
The Community Schemes Ombud Service, a national public entity that resolves disputes in sectional title schemes and other community schemes, approves rule changes and keeps scheme governance documents.
Is South African sectional title law changing? +
The Department of Human Settlements' 2026-27 plan lists amendment Bills for the STSMA and the CSOS Act, still at internal consultation. We found no change to either Act or their Regulations in force from 2024 to 2026.
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