The topic of fines and penalties in sectional title complexes is timely and pertinent, given the controversies surrounding the implementation of fines within such communities. Debate exists on whether fines genuinely deter undesirable behaviour or merely serve as revenue streams for bodies corporate.
Neither the Sectional Titles Schemes Management Act nor its prescribed rules inherently grant corporations the authority to impose fines for rule breaches. To enforce fines, a corporation must legally adopt a specific rule permitting such penalties. CSOS published the draft consolidated Practice Directives on 27 March 2025.
Catch the recording of our April webinar. In it, we break down the rules around imposing and enforcing fines in community schemes. We also cover the range of penalties for different breaches and how these can differ from one scheme to the next.
This webinar took place on 24 April 2025.
Watch the recording
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PKF Octagon provides complete audit, accounting, tax and consulting services to meet the specific reporting and financial needs of all residential and commercial bodies corporate and community schemes. We are a proud member of PKF International, a global family of independent firms bound together by a shared commitment to quality and integrity in a complex regulatory environment. www.pkfoctagon.com
Sectional Title Solutions is focused on providing value-add solutions to community schemes nationwide that reduce cost, generate revenue and increase property value. Solutions offered include innovative Funding and Treasury, Efficient Energy, Smart Technology, Legal Advisory and a host of other service solutions. Building sustainable relationships, helping our communities thrive. www.stsolutions.co.za