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A community scheme is an arrangement in terms of which there is shared use of and responsibility for parts of land and buildings. It comprises of Sectional Title Schemes, Homeowners Associations, Shared block companies, Retirement Villages and Estates.

Sectional Title is different from a free standing household. It is an undivided share of common property. The Sectional Titles Schemes Management Act 8 of 2011 (STSMA) together with the Community Schemes Management Act 9 of 2011 saw the change that was necessary to transform and regulate the whole industry.

The reason for the latest sectional title legislation is to update the Act and make use of simple English so that all the owners can find a meaning in the law within the scheme. For anyone staying in a shared land and buildings complex, it is very important that they understand the terms under the sectional title law.

Home owners associations are different from a sectional title block. Each owner has their own erf. The owner of the erf is responsible for its maintenance and repair. The HOA has no legislation that governs the operation of HOA’s unlike a Sectional Title complex. An HOA should have a Memorandum of Incorporation (MOI) or Constitution of which it should be managed by. This is a government documentation that will give guidance to the HOA on how to elect directors/trustees, what their powers and duties are.