Inside the Mixed-Use Sectional Title Schemes: The Application of Rules to Promote Good Governance

Abstract

The role of sectional title scheme properties in assisting the South African government in addressing housing challenges is beyond contest. Nonetheless, the Act that governs these schemes has some problems, particularly in managing mixed-use sectional title schemes. One of the failures of this Act is that it grants developers broad authority to define rules for schemes without the input of local governments or corporate corporations. The aim of this article was to provide a complete understanding of rule application within mixed-use or two-tier schemes designed to foster good governance. Additionally, a global comparative analysis of similar schemes will be conducted to evaluate the rule execution and management of these mixed-use plans. Rules violations by both trustees and managing agents were cited as the common causes of poor management of the sectional title schemes; however, what still needs to be answered is the application of rules under the current mixed-use schemes. The current study built on this gap and examined how rules are implemented under mixed-use or two-tier schemes. However, little attention was given to the mixed-use scheme of sectional title scheme properties and the practical application of the rules under this new framework. This study aimed to examine the application of regulations in mixed-use schemes and their impact on the governance of the schemes. A practical recommendation was made on the possibilities of closing the expectation gap encountered with the current mixed-use governance framework.