Real Estate Investor Magazine South Africa August 2015 | Page 83

Just Legal

Do’s and Don’ts
for sectional title trustees

T

Smooth Sailing for any Body Corporate

he Mismanagement of a sectional-proper ty
scheme can have widespread and unforeseen
repercussions for both the owners and the
residential market. Anyone buying into a sectional
title should take a careful and thorough review of
the schemes management, to satisfy themselves that
the body corporate is solvent.
A thorough understanding of the management
within the scheme is vital as it accounts for all projects
being under taken, be they general maintenance,
repairs or additional building. An active interest in
the progress of the work being under taken ensures
that there are no surprises later on in the schemes
lifespan. When repairs are required, ensure that
work is completed timely and effectively. Shoddy
and improper fixes will result in double the work
and time spent on every issue as more contractors
are hired to repair the initial issues along with the
faulty ‘fixes’. Regular maintenance will ensure that
the value of the scheme does not decrease through
general disrepair.
Correct budgeting is one of the more impor tant
factors in financial management as well as the

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schemes ability to pay all of its monthly accounts.
The steady flow of cash generated by a stable
scheme should ensure that there is no need to
increase levies on any unforeseen projects.
Communication with the owners should take
place on a regular basis. An increase in levies, general
maintenance work or any other upcoming issue
should be communicated well in advance so that
both the body corporate and residence are made
aware. Raising levies should be done in accordance
with national inflation and not as a result of