Collusion tactics have been flagged for Sectional Titles in estates, complexes, and gated communities, and experts noted that the practice isn’t unheard of.
Undesirable business practices have been a notable concern for estates and complexes, and now there are concerns regarding collusion tactics within sectional title schemes.Rebosa CEO Jan le Roux highlighted cases where sellers’ Rates Clearance Certificates were withheld until agents paid an ‘agreement’ fee, delaying transactions to benefit the estate.
He also said that while unlawful profit-making practices could technically impact sectional titles, no cases have been brought to Rebosa’s attention yet.other profit-making practices are now being flagged within sectional title complexes. They added that many of the service providers are supposedly partly owned by the estate managers themselves, relatives, or friends.
“I have not been made aware of these specific tactics within sectional title complexes. However, I can imagine that our industry, like many others, might be susceptible to such practices,” said Clarke.
If this is transpiring in a particular scheme, Clarke advised that the person brings it up formally with the trustees or at the next AGM. Collusion by management authorities of sectional titles with service providers contravenes Section 58 of the Property Practitioners Act because it introduces conflicts of interest, involves non-disclosure of benefits, undermines competition, and breaches the fiduciary duty that these authorities owe to sectional title owners.
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