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A Shared Facilities Agreement sets out the rules and responsibilities when multiple parties share common areas or equipment in a property development. It's commonly used in South African office parks, shopping centers, and mixed-use developments to manage shared spaces like parking lots, security systems, and utilities.

These agreements spell out how costs are divided, who handles maintenance, and what happens if disputes arise. Under South African property law, they're particularly important for sectional title schemes and commercial developments where different owners need clear guidelines about their rights and obligations for shared infrastructure and services.

Get a Shared Facilities Agreement in place before multiple parties start using common areas or services in a property development. This is crucial when setting up office parks, retail centers, or mixed-use buildings where tenants or owners share elevators, parking, security systems, or maintenance services.

The agreement becomes essential when coordinating with body corporates in sectional title schemes, managing service providers across multiple units, or developing commercial properties with shared infrastructure. Put it in place early - ideally during development planning or before occupation - to avoid disputes about cost allocation, maintenance responsibilities, and access rights under South African property law.

• Basic Property Management: The standard version covers shared spaces in commercial buildings, focusing on maintenance schedules and cost-sharing formulas
• Multi-tenant Retail: Tailored for shopping centers with detailed provisions for operating hours, marketing levies, and foot traffic management
• Mixed-use Development: Addresses complex arrangements between residential, retail, and office components with separate utility metering and access control
• Industrial Park: Focuses on heavy equipment usage, loading zones, and specialized maintenance requirements
• Sectional Title Variation: Aligned with the Sectional Titles Act, covering body corporate responsibilities and exclusive use areas

• Property Developers: Create and implement these agreements during project planning phases for new commercial or mixed-use developments
• Building Owners: Sign and enforce Shared Facilities Agreements to manage multi-tenant properties effectively
• Property Lawyers: Draft and review agreements to ensure compliance with South African property law and sectional title regulations
• Body Corporates: Manage shared facilities on behalf of property owners and enforce agreement terms
• Commercial Tenants: Must comply with agreement terms regarding shared space usage, cost contributions, and maintenance obligations

• Property Details: Map out all shared areas, facilities, and services that need management under the agreement
• Cost Allocation: Calculate how maintenance, utility, and operating expenses will be divided among parties
• Usage Rules: Define specific access times, booking procedures, and permitted uses for shared facilities
• Maintenance Schedule: Outline regular maintenance requirements and responsible parties for each facility
• Governance Structure: Establish clear decision-making processes and dispute resolution procedures
• Documentation: Gather property plans, existing service contracts, and relevant municipal regulations

• Facility Definition: Clear description of all shared areas, equipment, and services covered by the agreement
• Cost Allocation: Detailed breakdown of expense sharing formulas and payment terms
• Access Rights: Specific terms for facility usage, operating hours, and access control measures
• Maintenance Terms: Responsibilities for upkeep, repairs, and regular maintenance schedules
• Governance Structure: Decision-making processes and voting rights for shared facility matters
• Dispute Resolution: South African-compliant mediation and arbitration procedures
• Insurance Requirements: Mandatory coverage types and minimum insurance levels

A Shared Facilities Agreement differs significantly from a Facilities Management Agreement. While both deal with property management, they serve distinct purposes in South African property law.

• Scope and Purpose: Shared Facilities Agreements focus on coordinating multiple parties' rights and responsibilities for common areas, while Facilities Management Agreements outline how a single service provider maintains an entire property
• Party Structure: Shared Facilities involves multiple co-users or owners sharing costs and rights, whereas Facilities Management creates a bilateral relationship between property owner and management company
• Cost Allocation: Shared Facilities details how expenses are split among users, while Facilities Management specifies service fees and performance metrics
• Decision Making: Shared Facilities requires consensus mechanisms among users, but Facilities Management gives operational control to the management company within agreed parameters