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...

The appointment of a body corporate chairperson rests with the trustees elected at each annual general meeting (AGM). This appointment is not made by the members in the scheme but by the elected trustees at the first trustee meeting following the AGM. The chairperson has many duties that they need to fulfil, least of which is to chair and run the...

A common question regarding trustees at the annual general meeting (AGM) is about the number of trustees that need to be appointed. Curiously, there is no definitive answer or legislative guidance to provide light on this subject, making this an interesting question to delve into. Legislative requirements In a new sectional title development, all the registered owners are trustees until the first general meeting of the body...