The Sectional Title Schemes Management Act (STSMA) brought many new compliance requirements for sectional title schemes. Although some of these are from the old legislation prior to 2016, most are new and require more frequent assessment. Community Schemes Ombud Service (CSOS) All sectional title schemes are obliged to be registered with CSOS and each owner in a scheme must contribute a monthly...
Sectional title legislation requires all sectional title schemes to have a 10-year maintenance plan, also referred to as a maintenance repair and replacement plan (MRRP), which estimates the maintenance cost required by year over a period of 10 years. This plan does not generally include day-to-day maintenance items as those are allocated to the administrative budget. Let’s consider why a 10-year...
In a sectional title scheme, the trustees are responsible to ensure that the common property is managed and maintained within the legislative and budget parameters and provisions. Careful consideration must be given to the maintenance of the common property as it will not only affect the annual budget but also the levies payable by the members and the appearance and...
Why do sectional title schemes need a 10-year maintenance plan and what is its purpose? In this blog, we look at answering these questions along with listing some of the major advantages. A legal requirement In the past, many community schemes have found themselves in financial distress due to poor planning by trustees, or due to push back from owners not wanting...