Hon Chairperson, hon members, fellow comrades, I would like to express the fact that both Bills have been tagged as section 76 Bills ...
... ngoba le Mithetho iYilwayo kuza kufuneka ukuba iye kuxoxwa luluntu phaya ezantsi, ukuze luqinisekise ukuba iimfuno zalo zithathelwe ingqalelo. [... because these Bills will have to be discussed by the people at grass- roots level in order for them to ensure that their needs are taken into consideration.]
Although the Sectional Titles Schemes Management Bill and the Community Schemes Ombud Service Bill are two separate Bills, they are closely related and are therefore being debated together.
It is worth noting that the bundle of changes to the sectional titles and related Acts, which are being brought about by the Sectional Titles Schemes Management Bill and the Community Schemes Ombud Service Bill, can rightly be referred to as "third generation sectional title laws".
The "first generation" Sectional Titles Act came into operation in 1973. Sectional title development schemes, which provide for separate ownership of properties by different individuals, were considerably revised in the second generation law, that is, the current Sectional Titles Act of 1986, which came into operation in June 1988.
This Act, with its various subsequent amendments, prescribed the management and rules of conduct that apply to sectional titles schemes and laid the framework for the operation of such schemes.
Until now the Department of Rural Development and Land Reform has controlled both the registration of deeds and all the technical aspects of sectional titles, particularly the approval of sectional plans and the registration and transfer of rights in sectional title property. The department's role in the management of sectional titles schemes has, however, been limited to being the custodian of the governance documentation, including management and conduct of scheme members. It has not had the legal authority to add any value to the management of sectional titles schemes.
Whilst sectional title is a form of land title that can be applied to any land use, a substantial majority of sectional title units are used for residential purposes. In terms of the Breaking New Ground policy and comprehensive plan for housing delivery, the Department of Human Settlements' responsibilities were expanded to encompass the entire residential market. The decision was hence taken that the responsibility for the management and governance aspects of sectional title schemes should be transferred from the Department of Rural Development and Land Reform to the Department of Human Settlements.
The aim of the Sectional Titles Schemes Management Bill is to give effect to Cabinet's strategy of bringing all housing-related legislation presently administered by other departments under the roof of the Department of Human Settlements.
The Bill will essentially take over all sections of the Sectional Titles Act that deal with sectional title scheme management, and which have been administered up to now by the Department of Rural Development and Land Reform, thus creating a new Act administered by Human Settlements. The Sectional Titles Act of 1986, as amended, will retain only the clauses that deal with surveys and registration of sectional title plans. The proposed Sectional Titles Schemes Management Act contains all the management provisions currently integrated into the Sectional Titles Act.
With the existing legislative provisions being effectively moved from the Sectional Titles Act to the new Bill, substantial revisions have been made to the management provisions, which have been more logically set out and renumbered through a public participation process. People who buy into sectional titles schemes must now know the management aspects of sectional titles legislation in order to protect their vested interests as owners. I want to repeat this: in order to protect their vested interest as owners, as well as occupiers, of sectional title property. They will now be able to find all this information in one statute which exists only for that purpose, making things easier for those buying into these schemes.
The Sectional Titles Schemes Management Bill proposes a provision for the establishment of body corporates to manage and regulate sections and common property in sectional titles schemes and, for that purpose, to apply rules applicable to such schemes, as well as to establish a Sectional Titles Schemes Management Advisory Council, and to provide for matters connected therewith.
Information on sectional titles has historically not been sufficiently accessible to the general public. It is necessary to change this since sectional titles will become one of the dominant systems in operation when high-density residential areas become more prevalent in urban areas.
The fundamental motivation was to make sectional titles a more practical, useful and inclusive system. Property developers, land surveyors, conveyancers, the Deeds Office, bankers and town planners normally deal with the technical complexities of sectional title transactions. The Bill makes sectional titles a more practical, useful, inclusive and understandable system. In addition it deals with the actual operation of sectional titles.
Chairperson, the word "title" is a legal term that, among others, refers to a formal document that serves as evidence of ownership. Sectional title involves personal ownership, as well as collective ownership, of property. With this go a bundle of rights and responsibilities. The sectional title deed stipulates which parts of joint property are personally owned and which parts are collectively owned. As sectional owners, people have accountability towards others to share in the costs with regard to common property and also to maintain their personal property.
In regard to the Community Schemes Ombud Service Bill, the vast majority of new South African housing coming onto the market is in the form of one or other type of community scheme. Community schemes are becoming increasingly popular for groups of owners of conventional properties. They band together, either as a homeowners' association or as a residential improvement district, in order to ensure delivery of the services that are necessary to maintain their property values.
Most new housing developments are now happening in community schemes, involving governance by that community, shared financial responsibility, and the common use of land and other facilities. The model includes sectional title schemes and share block companies, etc.
The increasing need for government to provide some form of support to persons who own residences in community schemes, particularly in the area of dispute resolution, has become evident. Because they involve governance and the administration of finances, facilities and behaviour, community schemes can and do give rise to problems and disputes amongst participants, which need to be effectively resolved. Currently ...
... njengokuba uMphathiswa sele etshilo ukuba asinalo iyeza lokuwunyanga loo mhlola. [... as the Minister has already mentioned, we do not have a solution to that problem.]
The Community Schemes Ombud Service Bill will address this need. The ombud service will be established as a national public entity ...
... hayi, sele etshilo ke uMphathiswa, asoze ndiliphinde. [... and I will not repeat that, as it has already been mentioned by the Minister.]
All community schemes must and do incorporate certain rules. Currently, owners face limited and ineffective options when trying to resolve complaints or disputes relating to community scheme properties. These options include private arbitration or, provided the other party to the dispute agrees, taking the dispute to the High Court. Both options are expensive and time-consuming, particularly the High Court option which involves a lengthy process.
The ombud's office is expected to provide a solution to the current situation by providing a host of essential services to sectional title governance and all community schemes.
This proposed statute will create an independent body tasked with facilitating and arranging efficient and cost-effective dispute resolution, which arises in all community schemes. This will cover all those with shared management and financial responsibility.
The reason for setting up an ombud is to establish a simple and inexpensive recourse that will ensure independence, fairness and impartiality, and promote uniformity and consistency in the handling of disputes. It will also provide a remedy to protect the right to good governance and administration. The ombud deals with complaints and resolves disputes by appointing full- time conciliators, and full-time and part-time adjudicators to impartially handle investigations, hold hearings and make determinations. The adjudicators' decisions can be appealed at the Court of Appeal or High Court, but only if the appeal is based on a legal issue.
The ombud's service will monitor the governance of community property schemes. The schemes may have to report to the ombud on issues, such as conducting annual general meetings and having sufficient insurance cover in place. In addition to its primary objective of arranging for the resolution of community scheme disputes, the service will provide basic training for those who live in and manage community schemes. In line with similar initiatives in Queensland, Australia, and Canada, it is envisaged that the service will create and make available primary training material. This will prevent disputes which arise due to a lack of understanding of the fundamental principles which apply in each form of community scheme.
The intention is that the ombud service should be implemented in such a way that local communities throughout the country will be able to access it. At the same time, unnecessary bureaucracy must be avoided and the infrastructure of the service be kept as compact as possible.
As mentioned earlier, the Community Schemes Ombud Service Bill is linked to the Sectional Titles Schemes Management Bill, as most housing developments are now happening in community schemes which include sectional title schemes. These two Bills therefore complement each other.
The question can then quite rightly be asked why the Sectional Titles Schemes Management Bill needs to be separated from the Community Schemes Ombud Service Bill. The answer lies in the fact that the two Bills exist for fundamentally different purposes. The Sectional Titles Schemes Management Bill regulates the management and governance of a particular type, whereas the Community Schemes Ombud Service Bill seeks to ensure a cost-effective dispute resolution mechanism.
Somlomo, oyena ndoqo kuqulunkqo lwale Mithetho okokuqala, kukuqinisekisa ulawulo oluluqilima kwezi ntlaka zilandelayo: iitayitile, kunye nezikimu zoluntu, kuqukwa nezo zendawo ezihlala abantu abasele besidla umhlalaphantsi njalo njalo. Okwesibini, kukuqinisekisa kokusonjululwa kwembambano phakathi kwala maqela angasentla, nokuthi abantu bangangeni ezindlekweni ezinkulu nokuqinisekisa ukuba yonke loo nto ayithathi xeshalide. (Translation of isiXhosa paragraph follows.)
[Chairperson, of the utmost importance in the drafting of these Bills is to strengthen governance in the following two inseparable components: the titles and the community schemes, including the retirement homes and so forth. Secondly, this is to ensure that conflicts among the above-mentioned stakeholders are resolved and that people do not find themselves in extreme debt and also that all that doesn't drag on for a long time.]
Chairperson, allow me to express my sincere appreciation and thanks to all participants in the processing of the Bills, and this includes members of the portfolio committees from all political parties ...
... nePalamente ethe yasincedisa kakhulu, yasinika nexesha lokuba sikwazi ukuya kufunda e-Queensland ngokwenziwa kwalo Mthetho, nabasebenzi, kunye neSebe elikhokwela nguMphathiswa uTokyo ... (Translation of isiXhosa paragraph follows.)
[... and Parliament that assisted us tremendously by affording us an opportunity to learn more about the drafting of this Bill in Queensland; the staff, as well as the department under the leadership of Minister Tokyo ...]
... and the Department of International Relations and Co-operation, as well as the South African Embassy. Both Bills were adopted by the committee and the House is requested to support the adoption of the Bills. The ANC supports the Bills. I thank you. [Applause.]