Rules

One of the duties of a Trustee is the enforcement of the Rules governing a scheme.

The different types of Rules can be explained as follows:

The 1971 Sectional Titles Act introduced the system of Rules. Rules created under this Act were called Schedule 1 and Schedule 2 Rules. Schedule 1 Rules were the Management Rules (what is currently known as Annexure 1 of the STSM Act) and Schedule 2 Rules were the Conduct Rules (what is currently known as Annexure 2 of the STSM Act)

In the few schemes where on 1 June 1988 the Schedule 1 Rules have never been altered and thus applied in their original form, the Prescribed Management Rules (Annexure 8) replaced those pre-existing Rules on that date. Similarly the Prescribed Conduct Rules (Annexure 9) replaced any unaltered pre-existing Schedule 2 Rules that applied to a Body Corporate on that date. And subsequent to the new STSM Act, Annexure 8 and 9 were replaced with Annexure 1 and 2.

If on 1 June 1988 the Schedule 1 or 2 Rules of a Body Corporate had been altered they remain in force, as part of either the Management or Conduct Rules respectively, only to the extent that they were not irreconcilable with any prescribed Management Rule. In addition the pre-existing Rules that remained in force were supplemented by any Rule that appeared in the prescribed Management or Conduct Rules, but was absent from the pre-existing Rules.

The Schedule 1 Rules also sometimes make provision for House Rules to be set in place. Any scheme that operates on Annexure 1 and 2 Rules cannot have House Rules.

Schedule 1 and Annexure 1 Rules consists of clauses governing the basic constitution of the Body Corporate and the rights of individual owners. These rules may be amended only by unanimous resolution of the Body Corporate

Schedule 2 and Annexure 2 Rules deal more with the personal behavior of the members of the Body Corporate. These rules may be amended only by special resolution of the Body Corporate.