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EFFECTIVE INSURANCE PROTECTION AGAINST SARS TAX AUDITS AND RELATED DISPUTES




THE RISK OF A SARS TAX AUDIT IS REAL.
COVER AGAINST A SARS AUDIT HAS BECOME A TOP PRIORITY


* SARS is under pressure to meet targets which is leading to INCREASED audits.
* Having a competent accountant no longer Guarantees protection.
* It is very difficult for your accountant to be 100% up to speed with new Tax legislation at all times.
* Your Accountant can not defend you in a Court of Law.
* Many tax assessments are irrational.
* SARS doesn't always follow procedures & timelines.
* Taxpayers are at risk as they do not understand their rights.
* Cost to defend against a tax audit is debilitating



Who should be covered?
* Small to Medium-Sized Companies
* Trusts
* Owners of small to Medium-sized companies
* High-Net-Worth individuals (HNWI's)
So How does it work?
If you are selected for a SARS Tax audit or a related dispute, we will appoint  and pay for a TEAM of TAX PROFESSIONALS who will defend the taxpayer to ensure a fair audit outcome.

Out Team may consist of: Accountants, Auditors, Tax Attorneys, Tax Specialists and Tax Advisors. Even your Accountant will play a central part of the team and the fees will be paid for services during the claim.

Here are the benefits:
* Affordable monthly premiums
* Risk cover in the event of a tax audit for individuals and companies
* Access to SA's top Tax specialists
* Removes uncertainty of an unexpected SARS tax audit and related dispute.
* Covers the costs of your Accountants time, experience and expertise.
* Ensures fair treatment and audit outcomes
* The Indemnity limit is fixed , so you know what you have available



Once the policy is active - You are Protected no matter how far back SARS assesses.
SIGN UP FOR A TAX RISK POLICY TODAY.
Contact us on 031-5021922 or visit our website www.esbrokers.co.za

FOUR SHORT-TERM TIPS FOR KIDS, WITH LONG TERM RESULTS

Teaching kids some basic financial principles should ideally form part of their upbringing. Short-term insurance is key among them, since it provides an important safety net that helps to secure your long-term well-being.

It can be difficult to give up something when you do not see an immediate benefit, making short-term insurance (and most financial-must haves, for that matter) a difficult sell. But getting kids to understand it (particularly the patience it takes to stay covered), is a lesson worth learning. 


HERE ARE FOUR HELPFUL TIPS:


Delayed gratification is worth the reward

Paying for your short-term insurance diligently each month is hard to “enjoy”, but the relief when a claim arises and is covered, is such a reward for the effort of committing to your cover. It’s a good concept to grasp early; healthy routines result in reward, even if only down the line. It can be difficult to understand budgeting for insurance each month, instead of spending money on something tangible like the latest tech gadget. Keeping that gadget safe, however, is part of understanding how insurance works. Explain that insurance can replace items if they are properly insured but sticking to safety measures matters too. They’d need to be responsible with their insured item all the time; learning that consistency adds up to stay covered.


Keep safety in session always

Getting your kids to think practically about safety can go a long way. They should know how to lock up your home, they should know where certain items are kept (some examples might include where the torch is kept in case the power goes out, who to call in what type of emergency and where spare sets of keys are stored). Having a routine place for kids to store anything they carry along with them, like their keys, is a good practice to follow. The idea is to have your kids think responsibly with clear guidelines to refer back to. Keeping track and caring for their possessions is another important life lesson that is best learnt early. Kids need to know replacing items (a bottle/jacket/school jersey/shoes) costs money and needs to be funded from the family budget. They are more likely to take responsibility and less likely to lose items this way.


Lying will result in crying

Instilling good life principles, such as being honest, goes a long way (especially later in life). Your kids should be aware that lying can result in consequences.

While insurance cover won’t be as coveted as the latest gadget, the concept of losing privileges as a result of lying is all you need to get across. Honesty is the best policy when it comes to maintaining insurance cover; if you are caught to be misrepresenting the truth, you are likely to have your policy terminated, which will make other insurers less inclined to insure you in the future.



Good advice gets good results

Encourage your children to seek the assistance of an adviser when they are older, as they can help us consider the bigger picture. Even though it is your own responsibility to ask for the insurance you need, having some professional insight into how much you should have, or whether you have considered every angle of cover you might need, is the way to get the most out of having insurance in the first place.

It is a monthly expense that can be hard to part with if you aren’t seeing anything to show for it. But you’re actually paying for an invisible safety net, and come the day you need to claim, you’ll be so glad you stuck with it. The best outcome from short-term insurance, is to keep it in place consistently, as you never know when you might need it.

Article credits go to FA News
written
 Bertus Visser, Chief Executive of Distribution at PSG Insure

BICYCLE INSURANCE



WHAT OUR COMPREHENSIVE BICYCLE INSURANCE COVERS:

If the bicycle is specified on the policy schedule for pre-agreed value we will not apply average and the client will have cover up to the sum insured.

What is covered ?:

·         Accidental damage to the bicycle and accessories

·         Pothole damage

·         Damage incurred during training rides

·         Damage incurred during participation in a cycling event

·         Damage or theft in transit

·         Theft and hijacking

Included under the All Risks section is the Cyclesure Trip Cancellation cover.

What is covered:

The client can claim for pre-paid expenses like race entry fees, accommodation and travelling expenses if he/she needs to cancel his/her cycling trip due to the following:

·         Unforeseen illness, injury, or death involving you, your travel companion or a close relative.

·         Being made redundant.

·         Accidental damage, burglary, flooding or fire affecting your home, either while you are away or within two days before your departure.

·         You being subjected to compulsory quarantine.

·         A city on your itinerary suffering a terrorist attack within two weeks before your departure, leading you to abandon your trip.

·         R 10 000 cover is automatically included in the basic cover, but the client can increase this cover at an additional premium.

Age Limit: under 80 years

For any any queries or assistance please leave your contact details on our website
www.esbrokers.co.za

Your biggest investment is so much more than that

Your house is probably the single biggest investment you’ll ever make. But big or small, luxurious or basic, there are certain things without which a house is a little more than a collection of walls, doors and windows with a roof overhead – a building, no different to a million other buildings out there. Something to buy and sell without emotion, a mere commodity. 

But your house is much more than just a shelter from the elements. It is your safe place, both physically and emotionally. It is where your memories live. It is where you connect with your nearest and dearest, and with your inner self. It is where you go when you grow weary of the world, to refresh, recharge and regroup, so that you can emerge again, ready to take on the challenges that help you grow. What is it that makes it that place? It is the things you fill it with, from furniture to personal possessions, from memories to companionship. 

Because of that, your house is perhaps the most important place in your life. And because it means so much to you and those who share it with you, you need to protect it at all costs – from crime, from natural disasters, and from the gremlins that weaken your water pipes and chew through your electric cables. Because some of the things you fill your house with can be replaced, but some cannot. 

While no insurance company can replace the memories, companionship and love that are such important ingredients in making your house your home, furniture can be replaced, and damage can be repaired. The thing is that doing so often costs a lot, and you don’t want to add financial worries to the other woes when fate deals you a hard blow. 

While we often think about our vehicles when we think about insurance, your home is even more important to cover, because loss of or damage to your house will have a much more disruptive effect on you and your family. That’s why buildings and home content insurance is something you shouldn’t be without. But not just any insurance – when you are covering something this important, you need an insurer that is both reliable and experienced. 

With well over three decades of insurance experience, Auto & General fits the bill to a tee. You can rely on their Buildings and Home Contents policy to offer all the protection you need to sleep peacefully in the knowledge that your haven is covered, regardless of what fate may throw your way. Visit our page  for more information or contact us directly .

 

The TEAM at ES BROKERS

 

Thank you to Auto &General for this article  .

 

Keeping business continuity during tough economic times

When a business owner is faced with the loss of revenue, retrenchments or even bankruptcy, it can be hard to keep an entrepreneurial mindset alive. However, it’s often a time of crisis that forces entrepreneurs to focus, evolve and find new innovative opportunities to weather the storm. 

As an intermediary, you are ideally placed to advise and guide your business clients through this unchartered territory. We’ve put together four tips to help bolster their confidence and come out of this storm stronger. 

1.     Employees – the greatest company asset 

It might sound clichéd but it’s true: a company’s employees are their most valuable asset. Firstly, if a business can afford it, it should offer as much financial and emotional support to its employees as possible during this difficult time. If the business is operating during the pandemic, it should put measures in place to protect employees as far as possible. This includes education to fully explain the hazards to their health and safety within the workplace, and precautionary measures to reduce any exposure. Being supportive will encourage employees to keep delivering high quality outputs during challenging times. 

2.                 Reimagine client journeys 

Now’s the ideal time for a business to map out its client journeys at every touch-point – from awareness to post-purchase stage – and work at making them more client-centric. If your clients take a closer look at the entire journey, they will easily identify where interactions can be automated and where the user experience can be improved. Encourage them to ask their clients and staff for input, conduct surveys, and test different solutions. Small changes right now will give quick learnings – without costing them the earth if they don’t work. 

3.                 Get ready for post-lockdown 

Remind clients to use this downtime wisely and spend time reflecting on what works and doesn’t work in their business operations and services. Reviewing these things will show the gaps that might cost them revenue and the opportunities in the market they can cater to. Now’s the time to upgrade to more efficient alternatives, such as updating outdated equipment or implementing key training for staff. 

4.                 Review business insurance 

Work with clients to review all their insurance policies to see if they are adequately insured and to prevent any further losses. Ask them to make a checklist of what is covered and what is not, and help them fully understand their policies without making assumptions. 

Taking these steps – good risk management practices, updated safety training for employees and clients, as well as a solid plan for the new normal – will be make or break for businesses to survive. Santam is doing everything in its power to bolster your clients’ businesses, including a R400-million COVID-19 relief fund to help clients, suppliers, and contribute to the Government’s Solidarity Fund. 

If you have any questions about Santam insurance cover, please get in touch with us. For more advice tailored to intermediaries, please like our page and blog page   for  more articles.

 

 

Article complements of SANTAM INSURANEC COMPANY

 

The TEAM AT ES BROKERS

 

Measures to avoid muggings

SEVEN SIMPLE MEASURES TO AVOID MUGGINGS UNDER LEVEL THREE REGULATIONS


Summary of Alert Levels.

Level three of lockdown kicks off on the 1st of June and there are certainly one or two items on the “things we’re allowed to do” list that has us jumping for joy. An easing in restrictions on outdoor exercise means that residents will be allowed to exercise any time during the day, provided that this is not done in groups. So how does one venture out safely under level three regulations? Well, we’ve compiled a list of seven simple safety measures that you can follow to reduce the risk of falling victim to muggers.

1. Remember to be completely aware of your surroundings. Whether you are running, jogging, or just taking a Sunday stroll, keep your head up and your eyes and ears open. It is not recommended that you listen to music whilst exercising as it impedes your ability to detect not only other people but traffic too.

2. If you are alert of your surroundings you should be able to detect whether or not you are being followed. If you feel like you are being followed by another pedestrian walk to a public place such as a mall or the nearest police station. Remember to always walk on the side of the street that faces traffic, however, if you feel like you are being followed by a vehicle, never try to outrun them, rather turn around and go in the other direction.

3. Get security on the go with our Blue Mobile Panic App. Having the panic button seconds within reach means we’re only a couple minutes behind at all times, should you ever feel unsafe.

4. Walk in an assertive, confident manner, making eye contact with the people around you. Learn to identify suspicious behaviour and steer clear of strangers who appear to be up to no good. Remember, we should be practicing social distancing, so don’t feel guilty for crossing the road when you see people coming your way!

5. Plan your route before you go out, ensure that you stick to well-lit areas, and avoid short cuts through deserted parks and other areas. Although we are now allowed to exercise during any time of day, try to go when the sun is still out and remember that as Winter approaches it will begin to get darker much earlier in the day.

6. Although you are not allowed to exercise in groups, this doesn’t mean you have to venture out entirely alone. Go for your daily run or walk with another member of your household, but ensure that you maintain the recommended social distance of 1.5m. If you must venture out alone, inform a loved one of the route you will be taking and when to expect you back.

7. Carry only what you would need in an emergency and keep any valuables out of sight. Walking around on your cellphone and carrying your wallet in your back pocket make you an easy target for muggers. If you are carrying a bag, wear it diagonally across your body rather than on one shoulder as this makes it easier for muggers to snatch the bag and run.

The initial stages of lockdown may have seen a decrease in crime across the board, but as we “level up” and regulations ease up we can expect the same stats to climb again and possibly skyrocket in a post-lockdown South Africa. Remember to always be vigilant, practice caution, and keep yourself and your loved ones informed on the latest measures to stay safe as we resurface from staying home.

Article compliments of Blue Securty 

How to Prevent mechanical and Electrical Breakdown from occurring following Lockdown



Your car in lockdown: 5 claims that may impact you

Lockdown has meant that many of us are barely using our cars every day, which can cause unforeseen problems if we’re not careful. 

In a time when money is tight, costly breakdowns are still common and, unfortunately, there’s more chance of problems arising after a car has been standing still for a long time.

Extended warranty products available to SA motorists, find the top 5 claims during the lockdown have been for Engine, Cooling System, Electrical failure, Fuel systems, and Suspension, which are common issues when vehicles are parked for long periods of time.

However, we can do a few simple things to prevent the effects of lockdown damaging our prized automobiles and help protect our pockets at the same time. 
Here a few ways of how to prevent some of the top 5 claims from occurring:

1. The Engine – As the most expensive component, this obviously needs regular servicing by suitably qualified mechanics. But the regular starting of your car also helps lubricate the various moving parts contained in the engine, helping to prevent seizing or corrosion. When starting your engine, listen to see if you can hear any belts squealing (it’s a sign of worn belts or dry pulleys) or does your water pump or starter motor squeal when first starting (could be signs of wear or poor lubrication) so whilst it sounds crazy, remember, cars can’t talk to us, so just like pets or children, they often make a noise when they’re not well. That rattling, squealing, whistling, or uneven running can often be a sign that it needs help. If your car's engine makes a noise that isn’t normal, don’t ignore it and call your dealer. 

2. The Cooling System – Looking after your cooling system isn’t just about putting water inside the radiator. Whilst we may live in a mostly hot country, our cars still need antifreeze as part of its cooling system, yes even in Durban. Antifreeze also acts as a lubricant and many contain anti-corrosion properties, so make sure you have the right antifreeze to water ratio in your radiator. If you see your temperature gauge rise too high or see it go into the red you should switch off the vehicle. However, if it is safe to do so, you can help cool your car engine down by opening all of the windows and putting your heater and fan onto the full heat setting, so that heat from the engine is transferred through your vents and out of the car. It’s not a permanent solution but it’s an emergency procedure that can help as you make your way to a garage.

3. Electrical Components – Cars contain lots of electrical components that are often expensive, so keeping batteries maintained is important. Keep your car battery terminals clean. If you see white furry corrosion build up on your terminals, carefully pour boiling water from a kettle over each terminal to dissolve the corrosion. Cover the terminal with a little grease or petroleum jelly to prevent a recurrence. If a car is going to be parked for a long time, disconnect the black negative cable, being careful to not touch the positive terminal, as the disconnected battery lasts much longer. If it’s a late model car with sophisticated electronics check with your dealer first or simply take your car for a quick drive every day. 

4. The Fuel System – Running your car until the tank is nearly empty is not a good idea, because the dirty fuel at the bottom of the tank is sucked through the fuel system. It can quickly block filters and this can result in fuel starvation and other damage. Also, did you know that fuel has a shelf life. Don’t park your car for months without considering the fuel. Petrol at 30°C is good for +/- 3 months, while Diesel is good for +/-6 months before thickening, which can lead to expensive repairs.

5. The Suspension - Just like your couch, the springs are not going to last forever. So a quick check is simply to push down on each corner of your car to see how much movement there is. All corners should be equal and shouldn't have too much give. If the suspension is worn, the car will bounce up and down like an old jalopy. Similarly, the listening test for suspension systems is also an indicator of early wear. The danger of poor suspension is that it seriously affects a car's braking ability. Dealers can easily do a suspension check for you if you suspect its worn.  

Remember cars and engines are designed to run regularly, otherwise components can seize up or corrode, so the simple way to lubricate them is to drive your car for 10 minutes. This will also prevent flat-spots on your tyres as well as prevent your brakes from locking, which often happens when cars sit for too long.

"With most of us trying to save money wherever we can, this is not the time to ignore the costs associated with a vehicle breakdown.

Hopefully, these tips can help prevent any mechanical or Electrical loss, but as for providing, we understand that not everyone has piles of cash stashed in a box, which is why a monthly paid warranty is a great solution.

We have 5 Different warranty option plans available.
For a free no obligation warranty quotation on your vehicle please call our office on 031-5021922 or leave your details on our website www.esbrokers.co.za. 



Article credits go to Independent Media

How to Prevent mechanical and Electrical Breakdown from occurring following Lockdown



Your car in lockdown: 5 claims that may impact you

Lockdown has meant that many of us are barely using our cars every day, which can cause unforeseen problems if we’re not careful. 

In a time when money is tight, costly breakdowns are still common and, unfortunately, there’s more chance of problems arising after a car has been standing still for a long time.

Extended warranty products available to SA motorists, find the top 5 claims during the lockdown have been for Engine, Cooling System, Electrical failure, Fuel systems, and Suspension, which are common issues when vehicles are parked for long periods of time.

However, we can do a few simple things to prevent the effects of lockdown damaging our prized automobiles and help protect our pockets at the same time. 
Here a few ways of how to prevent some of the top 5 claims from occurring:

1. The Engine – As the most expensive component, this obviously needs regular servicing by suitably qualified mechanics. But the regular starting of your car also helps lubricate the various moving parts contained in the engine, helping to prevent seizing or corrosion. When starting your engine, listen to see if you can hear any belts squealing (it’s a sign of worn belts or dry pulleys) or does your water pump or starter motor squeal when first starting (could be signs of wear or poor lubrication) so whilst it sounds crazy, remember, cars can’t talk to us, so just like pets or children, they often make a noise when they’re not well. That rattling, squealing, whistling, or uneven running can often be a sign that it needs help. If your car's engine makes a noise that isn’t normal, don’t ignore it and call your dealer. 

2. The Cooling System – Looking after your cooling system isn’t just about putting water inside the radiator. Whilst we may live in a mostly hot country, our cars still need antifreeze as part of its cooling system, yes even in Durban. Antifreeze also acts as a lubricant and many contain anti-corrosion properties, so make sure you have the right antifreeze to water ratio in your radiator. If you see your temperature gauge rise too high or see it go into the red you should switch off the vehicle. However, if it is safe to do so, you can help cool your car engine down by opening all of the windows and putting your heater and fan onto the full heat setting, so that heat from the engine is transferred through your vents and out of the car. It’s not a permanent solution but it’s an emergency procedure that can help as you make your way to a garage.

3. Electrical Components – Cars contain lots of electrical components that are often expensive, so keeping batteries maintained is important. Keep your car battery terminals clean. If you see white furry corrosion build up on your terminals, carefully pour boiling water from a kettle over each terminal to dissolve the corrosion. Cover the terminal with a little grease or petroleum jelly to prevent a recurrence. If a car is going to be parked for a long time, disconnect the black negative cable, being careful to not touch the positive terminal, as the disconnected battery lasts much longer. If it’s a late model car with sophisticated electronics check with your dealer first or simply take your car for a quick drive every day. 

4. The Fuel System – Running your car until the tank is nearly empty is not a good idea, because the dirty fuel at the bottom of the tank is sucked through the fuel system. It can quickly block filters and this can result in fuel starvation and other damage. Also, did you know that fuel has a shelf life. Don’t park your car for months without considering the fuel. Petrol at 30°C is good for +/- 3 months, while Diesel is good for +/-6 months before thickening, which can lead to expensive repairs.

5. The Suspension - Just like your couch, the springs are not going to last forever. So a quick check is simply to push down on each corner of your car to see how much movement there is. All corners should be equal and shouldn't have too much give. If the suspension is worn, the car will bounce up and down like an old jalopy. Similarly, the listening test for suspension systems is also an indicator of early wear. The danger of poor suspension is that it seriously affects a car's braking ability. Dealers can easily do a suspension check for you if you suspect its worn.  

Remember cars and engines are designed to run regularly, otherwise components can seize up or corrode, so the simple way to lubricate them is to drive your car for 10 minutes. This will also prevent flat-spots on your tyres as well as prevent your brakes from locking, which often happens when cars sit for too long.

"With most of us trying to save money wherever we can, this is not the time to ignore the costs associated with a vehicle breakdown.

Hopefully, these tips can help prevent any mechanical or Electrical loss, but as for providing, we understand that not everyone has piles of cash stashed in a box, which is why a monthly paid warranty is a great solution.

We have 5 Different warranty option plans available.
For a free no obligation warranty quotation on your vehicle please call our office on 031-5021922 or leave your details on our website www.esbrokers.co.za. 



Article credits go to Independent Media

COULD SOUTH AFRICA’S VEHICLE CRIME SKYROCKET IN A POST-LOCKDOWN WORLD?


When we entered this lockdown period we could only make an educated guess at the effect it would have on crime. Fast forward a number of weeks, we’ve seen several predicted trends emerge and even a few that we did not foresee, such as the climb in rooftop incidents, during mid April.

When South Africa went into shutdown,

• We saw a community still plagued by crime,
• A variety of new cyber scams arose themed to this COVID19 era,
• Businesses became a common target,

and according to Tracker’s stats the balance between car theft and hijackings shifted as quiet streets and lone drivers created the ideal opportunity for hijacking incidents.

Pre-COVID19, the stats for vehicle theft and hijackings were 50/50, but during the initial lockdown the numbers slanted with an average 63/37% split towards hijackings. When the lockdown was extended, the stats evened out once again, most likely due to an increase in vehicle movement, after an easing in restrictions.

Since level 4 regulations were implemented, vehicle crime has begun rapidly returning to pre-lockdown levels and could possibly skyrocket in a post-lockdown world. With this in mind, we’ve compiled our top car crime safety tips to help you keep safe during these uncertain times.

Car Crime Safety Reminders:

MAINTENANCE IS A MUST

Cars left idle in the garage can start to act up – ensure that your vehicle maintenance is up to date. If you haven’t driven or started your car frequently during lockdown, check to make sure it still has life in it, and grab a pair of jumper cables at the next opportunity. This will decrease the likeliness of you breaking down alongside the road where you are left vulnerable to hijackers.

TIMES HAVE CHANGED

Previous high-risk hours for hijackings included 11am to 1pm and 8pm to 11pm. With curfews in place, we will likely see a change in peak hours as day-time hijackings become more prevalent. As we approach a post-lockdown world, remaining vigilant at ALL times is essential to keeping safe.

KEEP CRIMINALS ON THEIR TOES

Be cautious of the routes you take and if possible switch them up. Limitations on the possible places you can travel make your movements predictable. The parking lot of shopping centres, offices, petrol stations, and the driveway to your home – these present hotspot areas for opportunistic criminals that lie in wait.

BE AWARE OF HIJACKING TECHNIQUES

In the past, reports of hijackers mimicking traffic police officials, stopping drivers and robbing them of their valuables and their vehicles, was common. As roadblocks have become a more regular occurrence during lockdown, criminals might use this as an opportunity to target victims. If a roadblock appears suspicious to you and you are unsure that the vehicle or person pulling you over is an official, remember to remain calm and switch on your hazards – showing that you are prepared to cooperate – then drive to the nearest police station.

BE CAUTIOUS OF CAR THEFT MODUS OPERANDI

Keep your car clear of valuables.

Criminals get craftier with every passing day – it’s important to keep up with their latest modus operandi to avoid falling victim to their clever tactics. In a recent car crime trend caught on CCTV, thieves pulled up alongside a parked vehicle and before the driver could lock the car, the suspect secretly opened one of the doors – preventing it from locking.

KEEP YOUR CAR CLEAN

Much like leaving the doors to your home wide open, a car with valuables in plain sight only creates temptation for thieves. Limit the items you carry around with you and if you do have valuables – store them in the boot of your car – out of sight of prying eyes.

In the event that you find yourself in a hijacking situation, remember to remain calm and do not attempt to argue with the hijackers. If asked to step out of the vehicle, use the hand closest to the seat belt to unclip it. Avoiding eye contact and refraining from any sudden gestures, comply with their requests. Always remember that your life is more valuable than your vehicle.

We’re in unknown times and with the impact lockdown has had on the economy and people’s livelihoods, South Africa is bound to see an increase in criminal activity. Remember to always be vigilant, keep your eyes and ears open and your mobile panic button close


Article compliments of BLUE SECURITY 

Common Property - Improvements not necessary but "nice to have" - Part 4

In Part 3 of this series we discussed when improvement  
decisions must be referred to the members of the body corporate

In this newsletter we are going to discuss improvements which are notnecessary but rather 'nice to have'.

voting-no-49HVDMS.jpg?v=1586421119169

To pass a 'nice to have' improvement requires a unanimous resolution of the members to approve. However, the rules do NOT define what reasonable is as this will differ from one scheme to the next. Every case must be considered individually and on its own merits.

Some unique factors that influence the merits of a case include:

  • Where the scheme is located?
  • The financial status of the body corporate
  • The reasonable expectations of the majority who live in the scheme and so on...
Lets look at some examples: 

If a scheme is in an extremely wealthy and upmarket area where most of the owners have paid upwards of R8m for their two bedrom units, installing a heating system in the communal swimming pool may be considered to be 'reasonably necessary'.

Similarly, in a scheme where units attain a much lower purchase price,  the vast majority of owners do not expect to pay for a heated swimming pool. Voting for the installation of a heating system would be by unanimous resolution because the improvement is deemed to be not reasonably necessary but rather a 'nice to have'.


Article courtesy of Marina Constas and Karen Bleijs Demystifying Sectional Title 

In Part 5 of this newsletter we will expand on the idea of improvements which are reasonable necessary.

Sent to us from CIA Building Insurance Specialists