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Affordable mechanism

David Warmback, a partner at Durban-based law firm Shepstone & Wylie, says community schemes involve the shared control and administration of finances, facilities and behaviour of residents.

He says although there is currently a management rule in the Sectional Titles Act that provides for the compulsory arbitration of disputes, it simply states that two aggrieved parties should agree on an arbitrator to settle the dispute. No effective and affordable disputeresolution mechanism is available to parties involved in community schemes. “This is a serious stumbling block for the industry, given the potential for disagreement as a result of the complexity of sectional title living,” Warmback says.

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