Change from EUA ito plans to EUA ito rules

The EUA is registered in terms of the Plans, so we have to charge the Unit Owner with EUA levies. But Trustees want the Owner to be responsible for maintenance of the EUA instead of charging levies. Can they implement it in terms of the Conduct Rules or not?

If they want to do that they have to cancel the EUA that is registered ito the plans and make new EUA ito the rules and then in the rules make the owner responsible for maintenance. Then they cannot charge an EUA contribution.

But if I was an owner having EUA registered ito the plans I would not want it changed to be EUA ito the rules as it is so much easier to take it away from me then – you just change the rules.  EUA ito the plans is a registered real right – with EUA ito the plans I can bond and sell it – not so with EUA ito the rules.

The relevant portions of the STSM Act:

Section 5

(1) In addition to the body corporate’s main functions and powers under sections 3 and 4, the body corporate—

  • may, upon special resolution by owners, enter into a notarial deed of cancellation of an exclusive use right in terms of section 27(5) of the Sectional Titles Act;

 

Section 10

(7) A developer or a body corporate may make management or conduct rules which confer rights of exclusive use and enjoyment of parts of the common property upon members of the body corporate.

 

(8) The rules contemplated in subsection (7) must—                                                           

(a) include a layout plan to scale on which is clearly indicated—

  • the locality of the distinctively numbered exclusive use and enjoyment parts; and
  • the purposes for which such parts may be used; and

(b)include a schedule indicating to which owner each such part is allocated.                

 

Section 3

  • A body corporate must perform the functions entrusted to it by or under this Act or the rules, and such functions include—

(c) to require the owners, whenever necessary, to make contributions to such funds: Provided that the body corporate must require the owners of sections entitled to the right to the exclusive use of a part or parts of the common property, whether or not such right is registered or conferred by rules, to make such additional contribution to the funds as is estimated necessary to defray the costs of rates and taxes, insurance and maintenance in respect of any such part or parts, including the provision of electricity and water, unless in terms of the rules the owners concerned are responsible for such costs;