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Legal expenses in community schemes

In October 2016, new legislation governing community scheme property came into force, followed by an increase in statutory responsibility and accountability of property owners, trustees and managing agents. More so than ever before, laws and regulations have been put in place to hold all those to account who may potentially misuse and misappropriate the community scheme property owner.

Regulations inevitably lead to an increased likelihood of legal confrontations and for that a body corporate must ready themselves.

While any community scheme property insurance policy will have various forms of liability insurance cover, such cover will be limited to covering the scheme as property owners, trustees or employers. Any claim for costs against the scheme will have to fall within the specific terms of the cover.

An increasing number of circumstances now necessitate community schemes to seek legal assistance.

Addsure now offers a product tailored to this exact need and to protect against legal costs and expenses.

Among the benefits of the new product are the following:

  • – Legal services and legal expenses insurance
  • – Comprehensive legal support and advisory services
  • – Prepare and draft of employment agreements
  • – Prepare and draft agreements with suppliers and service providers
  • – Assist with Community Schemes Ombud applications
  • – Assist with dispute resolution and arbitration
  • – Assist with governance and compliance issues
  • – Assist with labour matters
  • – Assist with litigation and legal representation in the High Court, lower courts and other forums
  • – Written legal opinions
  • – Access to a web-based, legal library

Members of community schemes – especially trustees and directors – are faced with potential legal complications dealing with property owners, employees, contractors, service providers and members of the public. Ensure that you are prepare to handle potential legal confrontations.

For more information on how to access this legal insurance cover, please contact your nearest Addsure office.

Author: Bruce Gibson

Addsure is South Africa’s leading sectional title insurance brokerage. Obtain fit and proper advice from advisors who understand sectional title. Contact us our head office in Cape Town on (021) 551-5069 who will put you directly in touch with one of our nationwide advisors.