In a Sectional Title scheme, it is usually the trustees and managing agents who are seen to be running things on a day-to-day basis and dealing with the maintenance of the common areas and amenities.
However, says Andrew Schaefer, MD of leading property management company Trafalgar, the trustees are in fact only acting on behalf of the body corporate, which is a legal entity made up of all the owners in the scheme and has the fundamental responsibility for ensuring a well-run and financially secure property.
The key responsibilities of the body corporate, which are shared by every owner, are:
- Administration and good governance: “The body corporate is responsible for establishing and enforcing the rules and regulations of the scheme. It must also hold at least one general meeting a year where decisions regarding the complex's budget, finances, and management are made. The trustees who will execute these decisions are usually elected at this meeting.”
- Maintenance and repairs: Ensuring the upkeep and maintenance of common areas like gardens and walkways and shared amenities such as swimming pools, laundries or gyms is a primary responsibility of the body corporate, even if it is usually delegated to the trustees and managing agent, he says. This includes routine maintenance and necessary repairs, as well as a long-term planning for the maintenance and replacement of major items such as lifts.
- Financial management: “The body corporate, guided by the trustees and managing agent, must manage the finances of the Sectional Title scheme. This task includes collecting levies from individual owners to cover common expenses and paying any amounts owing to the municipality and other creditors for services provided to the common property. It must create and pass an annual budget, keep financial records, arrange an annual audit and ensure that the complex is adequately insured at all times.”
- Dispute resolution: The body corporate is also responsible for resolving any disagreements between owners with regard to issues such as noise, pets, parking, drying washing on balconies, property alterations, or compliance with rules, Schaefer notes. “There are also specific procedures to follow when an owner or group of owners is in dispute with the body corporate itself. If these cannot be resolved internally, they must be referred to the Community Housing Schemes Ombud for mediation or adjudication.”
He also says that once individual owners understand that they are actually a part of the body corporate and not separate from it, it is usually easier for them to accept that each of them, and not just the trustees, has a role to play in keep the complex solvent and in good repair.
“While the trustees and managing agent may handle the budgeting, levy collection, debt collection of arrear levies, payment, and regular maintenance tasks, they cannot plan or do any of this work effectively without the collective support of the owners in the body corporate.”
Schaefer says this support can take many forms, but at the very least should include the prompt payment of any levies due. “If the body corporate is the backbone of the Sectional Title scheme, levies are its lifeblood, essential for financial stability, the maintenance of common areas, municipal services continuity, and the protection of value.
“In addition, owners should make every effort to attend body corporate meetings and participate in the discussions about and votes on budgets, levies, reserve funds, changes to conduct rules, and other issues. In this way, they can help shape the decisions and policies that are going to affect them in anyway. Interested owners should seriously also consider serving as trustees to play a direct role in decision-making on behalf of the body corporate.”
And on this point, he says, all owners need to adhere to the body corporate rules and regulations and ensure that their tenants do, too. “Being a considerate neighbour is also one of the best ways to create a harmonious and peaceful life in a Sectional Title community and a successful scheme.”
