COURT SAYS: SCHEME BETTER OFF IN HANDS OF OWNERS

This is an interesting judgment in which the Court found in favour of owners of a sectional title scheme, inexperienced as they may be in managing a body corporate, rather than extending the appointment of an inefficient Administrator.

This, despite the fact that the scheme's finances were still in an unsatisfactory state.  The Court confirmed that the Legislature prefers self administration in schemes and it should exercise its discretion accordingly, where circumstances allow.

 

INTRODUCTION TO THE SUMMARY OF THIS CASE

The plaintiff was appointed as an Administrator of a sectional title scheme, in terms of the provisions of section 46 of the Sectional Titles Act 95 of 1986 (“the STA”).  The application was, at the time, brought by the local municipality because of the high amount of the outstanding rates and taxes due to it.

NO FFC, NO GAIN.

make sure you aren't losing out

Are you an estate agent or receiving part commission for assisting an agent?  If so, do you have a valid fidelity fund certificate (FFC)?  In 2010, IEASA released an article informing all agents of the need to have and FFC  and we recently received this update from one of our legal advisors.

This judgment deals with a claim for commission by an estate agent who was not in possession of a valid fidelity fund certificate at any time, although employed by an estate agency.  The Court a quo (the court from which an appeal has been taken) held that the prohibition against claiming commission in such circumstances was not relevant in the relationship between the agent and the agency, only where such agent sought to claim commission from a member of the public. The present Court disagreed.

 

 

  

SUMMARY INTRODUCTION

Venter was employed by Warren Jack Property Brokers (“the estate agency”) and performed work as an estate agent, although he never was in possession of a valid Fidelity Fund Certificate. His contract of employment provided that he would be entitled to 50% of all commission received by the estate agency in respect of transactions he successfully facilitated on behalf of the agency.