Property glossary
STSMA (Sectional Titles Schemes Management Act)
Also known as: Sectional Titles Schemes Management Act, Act 8 of 2011
The 2011 Act that governs how sectional title schemes are managed — covering the body corporate, levies, funds, rules and meetings.
Definition
The Sectional Titles Schemes Management Act 8 of 2011 (STSMA) is the principal statute governing the management and administration of sectional title schemes. It sets out the establishment, functions and powers of the body corporate, the duties of trustees, the requirement to keep an administrative fund and a reserve fund, the raising of levies, and the procedures for AGMs and rule-making. It is supported by the STSM Regulations, which contain prescribed management and conduct rules. The Act separated scheme management from the Sectional Titles Act 95 of 1986, which now deals only with ownership and registration.
In the South African context
The STSMA came into force on 7 October 2016, together with the CSOS Act. It obliges every body corporate to budget for and maintain a reserve fund for future maintenance, to insure the buildings, and to follow prescribed procedures for levies, proxies and meetings. Many of its default rules can be varied by the scheme's own rules, provided those rules are filed and not inconsistent with the Act.
Example
A body corporate relying on the STSMA must, for instance, prepare a written maintenance, repair and replacement plan and fund a reserve fund alongside its R1.2 million administrative-fund budget.
Why it matters
The STSMA is the rulebook trustees and managing agents work from daily — it dictates how levies are raised, how meetings run, and what funds a scheme must hold.
Informational only — not legal advice. Confirm specifics against the current Act and your scheme’s rules.
Sources
- STSMA — Sectional Titles Schemes Management Act 8 of 2011 — management of sectional title schemes, in force from 7 October 2016