Scheme Rules - Conduct Rules & Management Rules

Scheme Rules - Conduct Rules & Management Rules

There are two sets of rules which govern the management of a Sectional Title Scheme and which provide for the control, management, administration, use and enjoyment of the sections and the common property.

At the inception of a Scheme, standard MANAGEMENT RULES are lodged and CONDUCT RULES are established, usually by the developer of the Scheme. These standard rules may later be amended to meet the specific needs of the individual Scheme at the first annual general meeting, when owners meet to discuss the management of their own Scheme.

It is important that owners and all residents of the Scheme familiarise themselves with the rules, both in consideration of others and in protecting their own interests.

Management Rules

Management Rules control the running or management of the Scheme. The Trustees are the “managers” of the Scheme. Trustees, and the appointed Managing Agent, are responsible for enforcing the Management Rules.

The Management Rules may only be changed or added to, at an annual or special general meeting which is convened with 30 days' notice. The meeting will require an 80% quorum and a unanimous resolution, (100% agreement of the persons present in person or by proxy), to pass the changes to the Management Rules.

The new rules must be filed at the Community Schemes Ombud Services for approval.

Conduct Rules

Conduct Rules lay down guidelines for the conduct of owners and their guests and tenants. Trustees, and anyone mandated by the Trustees to assist with the enforcement of Conduct Rules, are responsible for enforcing the Conduct Rules.

The Conduct Rules may only be changed, or added to, at an annual or special general meeting which is convened with 30 days' notice. The meeting will require a standard quorum and a special resolution (75% agreement of the persons present in person or by proxy), to pass the changes to the Conduct Rules.

The new rules must be filed at the Community Schemes Ombud Services for approval.

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