Real Estate Investor Magazine South Africa April/May 2019 | Page 9

Q&A
Property Advice
MY BODY CORPORATE
IS MIA
Auren Freitas dos Santos of Paddocks,
Specialists in Community Scheme Man-
agement, answers this reader’s ques-
tion regarding his new body corporate.
Question:
Dear REIMag team,
I need help regarding my body corporate, I would like to
get more information about them: Who are the members or
owners? I bought a flat two years ago, I never received any
statements regarding the last sectional title home owners
association meetings or annual budgets. The one person
who claims to be the body corporate doesn’t respond to
any emails or phone calls. I’ve left many messages. Propell
just email me monthly statements for the levies to be paid.
Where do I get more information regarding my purchase?
I’m starting to get worried as some people don’t pay levies
due to bad services.
Answer:
Understanding the basic principles of sectional titles will help
you navigate the potential pitfalls associated with sectional title
living. It is important to understand that when purchasing a
property in a sectional title scheme, you automatically become
a member of that particular body corporate. It is a legal entity
that exists to control, manage and maintain all the common
property. Common property includes all the land and those
parts of the buildings that are not included in your section, and
is jointly owned by the members of the body corporate.
In order to operate and maintain the common property, the
body corporate needs to raise funds through the levying and
collection of contributions, known as levies. An administrative
and reserve budget needs to be prepared and presented to
the members at each Annual General Meeting (AGM) for
approval. Once the budget has been approved, it is generally
divided among all owners based on the ‘participation quota’
of each section, which is generally calculated on the size of
the floor area of each section. Owners are legally required to
pay levies by their due date and if an owner falls into arrears,
the body corporate is obliged to recover the outstanding levies
from the owner.
The day to day management of the body corporate is carried
out by the trustees, who are elected by the owners at each
AGM. Often bodies corporates will choose to employ a
managing agent to do these tasks on behalf of the trustees.
Irrespective of the management arrangement of your scheme,
the ultimate control vests in the hands of all owners and you
are encouraged to keep up to date with the dealings of the
trustees and the managing agent. Should you believe that you
have been prejudiced as a result of maladministration, you
can make an application to the Community Scheme Ombud
Service or the High Court for relief.
To learn more about the basics of your sectional title scheme,
register for the online short course offered by Paddocks on the
Free Basics of Sectional Title, before 26 April 2019.
Should you require any advice don’t hesitate to contact
Paddock’s consulting department at consulting@paddocks.
co.za for a no-obligation quote, to provide the necessary legal
assistance.
REIM TV @REIM_SA
www.reimag.co.za RealEstateInvestorMagazine
SA Real Estate Investor Magazine APRIL/MAY 2019
7