Rights & Responsibilities of The Body Corporate in Sectional Schemes
Owning a unit in a complex or apartment block is very different from owning a freestanding property. You may own your unit, but you are also party to collective membership of the scheme, and as such you have certain obligations. You are a member of the body corporate and this means you have rights & responsibilities.
“Body corporate” is the name given to the registered owners of all units in a sectional scheme collectively. A body corporate comes into being when the sectional title register is opened and the seller/developer transfers the first unit to a sectional owner.
The Body Corporate Rights and Responsibilities
The body corporate has various rights and responsibilities. Its main task is to manage and administer the land and buildings in the sectional title scheme.
To do this, the body corporate must:
1. Appoint agents and/or employees, if deemed necessary, for the benefit of the scheme.
2. Appoint Trustees (at an annual general or special general meeting) to attend to the day-to-day administration of the scheme.
3. Make other decisions at any meeting regarding the affairs of the scheme. The scope of these decisions is broad, including:
- Approval of budgets
- Appointment of managing agents or auditors
- Consideration of resolutions brought before the body corporate
- Approval of the schedule of insurance replacement values of the individual units in the scheme
- Determination of the extent of insurance cover for the body corporate for public liability and other risks
- Approval of the admin fund budget and the reserve fund budget of the body corporate
- Consideration of the Annual Financial Statements of the scheme
4. Enforce the rules of the body corporate (the Management and Conduct Rules) and impose fines and penalties (if the Rules allow)
5. Maintain the common property.
6. Manage the funds of the body corporate.
7. Resolve conflicts between owners in the body corporate.
All registered owners who are not in arrears with their levy payments have the right to vote at any meeting of the body corporate.
For expert advice on sectional title schemes, contact Simon Dippenaar and Associates on 086 099 5146 or email@example.com.