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Can body corporate approve tenants?

28 Jun 2012

A Property24 reader asks:

Tenants running night clubs and brothels have been evicted from our building. Can the body corporate not approve tenants before they enter?

In recent months the building I live in has had to evict tenants due to contravention of the Body Corporate rules - this includes running night clubs to brothels. 

After some investigation it turns out the agents are finding tenants on behalf of owners who are sometimes not even in the country. Would it be possible that where an owner employs an agent to find a tenant, the body corporate implement a rule that would require the agent to request approval from the body corporate before the tenant's application is processed? 

If this is not possible, who can we hold accountable, the owner or the agent? 

Phil Calothi, owner and Managing Director of the Cape Town based managing agent company,   Land and Sea Development Services (Pty) Ltd  , advises:

I see no reason why a body corporate cannot adopt a rule regarding approval of tenants by the trustees prior to occupation. It would, however, be worthwhile to enquire first from an attorney  what legal rights an owner may have to dispute this in common law and whether there might be any implications in terms of the Consumer Protection Act. 

If the above enquiries prove to be negative, all that is necessary is for a Special Resolution to be adopted by the required majority of the members in a scheme to incorporate such a rule in the Conduct Rules of the scheme. Care must be taken in the wording of the new rule to ensure that, in the application of the rule,the rights of both the body corporate and members are clearly spelled out. 

There are also provisions in the Sectional Titles Act with regard to the use of a unit, which cover the malpractices you mention. 

The Act includes the following: 

  1. A unit may not be used in such a manner or for such a purpose as shall cause a nuisance to any occupier of a unit.
  2. A unit may not be used in such a manner or for such a purpose as shall be injurious to the reputation of the building.
  3. The owner of a unit shall not contravene any law relating to the carrying on of business in the building.
  4. A unit may not be used for any other purpose other than for what it was intended to be used expressly or by implication or by the registered sectional plan without the written consent of all the owners in the building. 

If an owner or a tenant is found to be contravening any of the above laws, the owner can be held accountable. 

Readers may submit questions to Property24’s Guest Expert panel and/or comment below. We may not be able to answer all questions received, but all will be considered.

About the Author
Phil Calothi

Phil Calothi

Phil Calothi is the owner and Managing Director of a leading Cape Town property management company, Land and Sea Development Services (www.lsds.co.za).

Phil Calothi is the owner and Managing Director of a leading Cape Town property management company, Land and Sea Development Services (www.lsds.co.za).

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