select
|

Functions and powers of body corporates

Throughout the South African sectional title property industry, problems arise regularly because body corporates are not fully aware of the extent of their functions and powers – and quite often fail to exercise them as the law requires.

This was said recently by Johalna Minnaar, National Sales Manager for the Rawson Property Group.

“The Sectional Title Act 95 of 1986,” said Minnaar, “has clearly defined the roles of body corporates – but it is widely accepted in our sector that, although these are understood in principle, many members and their trustees often lack in-depth knowledge of the laws to which they are supposed to be working.”

The functions of a body corporate, said Minnaar, are generally better understood than the powers which they confer.

These powers, said Minnaar, are:

1.To appoint agents and employees if it is deemed that they are necessary to the welfare of the scheme.

2.To purchase or in other ways acquire and take transfer of mortgages, to sell units or to let or hire them out when necessary.

3.To purchase, hire or acquire moveable property for the use of owners so as to enhance their enjoyment of the scheme and/or to better protect it.

4.To establish and maintain the scheme’s common property, lawns, gardens and recreational facilities for the benefit and use of all residents.

5.To borrow money where it is deemed necessary to improve the scheme’s ‘performance’.

6.To secure the repayment of any money owed to the scheme and the interest payable on it, particularly with regards to unpaid contributions and levies. The body corporate can also mortgage any property vested in it.

7.To invest any money paid into the scheme’s administrative fund for the repair and upkeep of the common property.

8.To enter into an agreement with local authorities for the supply of electricity, water, gas, fuel, sanitary and other services.

9.To enter into an agreement with any owner or occupant of a section for the provision of amenities or services by the body corporate to such people. This includes the right to let a portion of the common property to any such person.

10.To do all that is necessary to enforce the rules regarding the control, management and administration of the scheme.

Minnaar commented that these powers are broader than most people realize and only a minority of the trustees of schemes exercise their powers to the full.

“What has been a headache to owners and tenants alike are the rules regarding pets. In two cases recently, a sale was made with the house rules stating that pets are allowed ‘with permission’. This was obtained, but while the transfer was in process the body corporate decided to reverse this decision and ban pets. This has huge repercussions because the owners bought here on account of being allowed pets. It has to be pointed out that changes like these can only be made at board meetings and with a majority vote. Most importantly, changes can only become effective once registered in the house rules of the scheme in the Deeds Office.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK