Sectional title schemes, while varying in size, all need the right management so that their financial stability is kept intact. They should be run as any other business, with the positions of the day to day management filled by the correct people.
When choosing a managing agent it is important to check the company’s track record carefully and ask for a few references. There have been many disreputable companies who have set themselves up as managing agents and end up running the sectional title schemes they were working with badly, which can end in the scheme either becoming insolvent, neglected and they can lose property values fast.
If the trustees find themselves looking to employ a managing agent, there are a few things to look out for.
Firstly whether the managing agent has a Fidelity Fund Certificate from the Estate Agency Affairs Board. While it isn’t necessary for every staff member in his company to be registered, the principal agent must have an FFC. This is necessary as there are huge sums of money being managed in the form of levies and managing agents must register with the EAAB and deposit money into a trust account in the name of the scheme. To continue reading click here…