Prescribed management rule (“PMR”) 7 requires owners who want to nominate trustees to do so in writing accompanied by written consent from the nominated person at least 48 hours before the annual general meeting (AGM). If the number of nominations received before the AGM equals the number of trustees decided upon at the AGM, there will be no need for...
It is important to understand the extent of coverage of the body corporate’s sectional title insurance - and what your personal liability is - to avoid any oversights. This is especially true for new owners. In this article, we provide some information to clarity the matter: Sectional title insurance is a legal requirement, and the costs are calculated according to each section...
The Community Schemes Ombud Service (CSOS) was established in terms of the Community Schemes Service Act 9 of 2011 to regulate the conduct of parties within community schemes and to ensure their good governance. When an owner or occupier has a dispute relating to the administration of that scheme, they are able to approach CSOS for assistance to resolve such dispute. Not...
Sound financial management is absolutely critical for a body corporate to function optimally. To set a standard of good practice for the body corporate, good processes and procedures will structure the communication between the trustees and the managing agent, and will ensure that the body corporate’s funds are managed responsibly. Let`s have a look at what is expected of the trustees...
As a body corporate cannot function without funds, managing the scheme’s funds is one of the most important responsibilities the trustees have. While the trustees make decisions on how and when the funds must be allocated, they do not actually manage the funds themselves - this function falls on the managing agent. This is where problems sometimes arise and it is...