The income from levies is what enables a body corporate to pay for services provided and maintenance of the common property. As members in the scheme are proportionately responsible for their share of levies, it is essential that they pay their levies timeously. When members do not pay their levies, it can quickly result in financial distress for the body...

While many schemes have their financial year-end in February or June, it will vary from scheme to scheme. Regardless of the month in which the financial year falls, a body corporate must prepare an administrative budget for submission at the annual general meeting (AGM). To do this, the trustees must plan to allow themselves the time to put together an...

While most bodies corporate rely solely on levy income, some try to find additional ways to bolster their income. One additional source is to rent common property to members of the scheme or to third parties. Who decides if common property can be rented? Trustees are responsible to manage, administer and maintain common property which collectively belongs to all scheme members in...

One of the most important responsibilities trustees have is to ensure that their scheme is adequately insured against unforeseen events such as storm damage or destruction by fire. Sectional title legislation obligates bodies corporate to have independent property valuations performed for insurance replacement purposes every three years. The benefits of regular valuations Prior to the changes in legislation, bodies corporate rarely had independent...

It is not uncommon for trustees and owners to be unsure about which rules are valid and enforceable in their schemes; some may not even be aware of their scheme’s rules. Changes to the sectional title legislation on 7 October 2016 has further added to the confusion. This is where the Sectional Titles Schemes Management Act (STSMA) is helpful in understanding...