How to stop the water abuse in your complex

“We are all aware of the water restrictions around the country and that we should all try and save water. Yet in our sectional scheme, there are some of the owners that openly waste water, but receive the same water bill as I do from the body corporate. Surely our body corporate should be dealing more effectively with such wastage?”

The general rule in sectional title schemes is that owners are billed according to the participation quota in the scheme, determined according to the relative size of the unit. The problem with this is that this is not always reflective of the actual use of the water. A large unit owner could be away for large parts of a year and not use nearly as much water as a smaller unit that has a number of persons who use water excessively, yet on the basis of this approach, the larger unit would get the higher water bill from the Body Corporate.

Body corporates are however coming to grips with the importance of becoming stricter with the water usage in the scheme, particularly because of penalties and higher volume rates that many municipalities are implementing to curb water usage. Many schemes are creating awareness within the scheme to act more responsibly with regards to water use and even implementing scheme rules in respect of water use, allowable plants, irrigation use, water recycling and more, to help owners become more water wise. Some schemes are even going so far as to implement penalty systems to discourage abuse by owners. But yet, there will always be persons that will still try and get away and abuse the scarce water supply available to us.

Other steps that many body corporates are taking to curb this, is to have individual water meters installed for each unit, allowing each unit’s water consumption to be measured and billed to that unit. Another alternative is, installing prepaid water systems, where unit owners have to purchase water (similar to prepaid electricity). In both cases, there are potential costs and other issues involved, and such resolutions would have to be correctly taken by the body corporate. With prepaid water systems, there are also potentially constitutional issues relating to access to water to be considered. Yet, many body corporates are engaging with these processes as a necessary measure in their broader strategy to curb water usage.

There is a lot that your body corporate can do to deal with water wastage. Our advice would be to engage with your body corporate regarding the steps it is taking, raise issues that you may have noticed with them, and if necessary encourage them to seek the assistance of a sectional title specialist to help them implement water conservation steps correctly in your sectional title scheme.

April 6, 2018
The costly consequences of backdated share transactions

The costly consequences of backdated share transactions

The South African legislative framework regards backdated shares as a suspicious and illegal practice, as it arises when a share issue or transfer is recorded as having occurred on an earlier date than the actual transaction. While backdating may be viewed as an administrative oversight, the consequences may constitute compliance risk, serious misconduct on directors, beneficial owners and compliance officers who authorise the backdating of share transactions. This is because backdated shares may manipulate the timing of funds, obscure the source of funds, and distort a company’s beneficial ownership structure.

Tax transparency matters: Are your deals reportable?

Tax transparency matters: Are your deals reportable?

Some deals come with hidden reporting duties. Find out when your transactions could trigger SARS disclosure rules, and how to stay compliant. You may have heard the term “reportable arrangement” in tax conversations around commercial transactions. It sounds technical, and it is, but at its core, it’s about transparency. The South African Revenue Service (“SARS”) seeks information on certain transactions that could be used to avoid or reduce tax. If you enter a reportable arrangement, you may be legally required to report it. Failure to comply can result in significant penalties.

Tinsel, trolleys, and traps: Outsmarting the Black Friday storm

Tinsel, trolleys, and traps: Outsmarting the Black Friday storm

As Black Friday specials and festive-season sales saturate the market, retailers compete with promises of “unbeatable” discounts and “blink-and-you-miss-it” deals. But even in the frenzy, the Consumer Protection Act 68 of 2008 (the “CPA”) still applies. Designed to curb deceptive advertising, ensure fair pricing, and guarantee that goods remain of acceptable quality, the CPA sets the rules of the game. Understanding these rights is essential for both suppliers and shoppers, helping prevent year-end discounts from turning into disputes.

Sign up to our newsletter

Pin It on Pinterest