There are numerous key players in a Sectional Title Scheme, and confusion often exists in respect of what is expected of the many parties. In this edition we will be focusing on the duties of Trustees and Managing Agents.
A Sectional Title scheme or “complex”, as it is often referred to, is controlled and managed by the Trustees of the Body Corporate. The Body Corporate consists of all the owners collectively who own a unit in the scheme. The trustees, as mentioned above are defined as members of the Body Corporate who have been elected by the owners to administrate the Sectional Title Scheme. These tasks and responsibilities are closely defined in the Management Rules 28 to 45, an annexure to the Sectional Title Act. Examples of these tasks are listed below:
Administrative and Control:
- Arranging meetings (e.g Annual General Meeting)
- Record keeping of minutes of meeting
- Rule enforcing
- Manage employees
- Common Property maintenance
- Consider requests from owners (alterations, extensions etc.)
- Compiling of Income and Expenditure schedules
- Arranging of Annual Financial Statements compilation (e.g. Auditor)
- Levy Collections
- Keeping proper books of accounts and records
- Operate and control bank account and payment of expenditure
- Invest surplus funds
A Managing Agent is a person or company who is appointed by the Trustees of the Body Corporate to assist with their duties, and act on their behalf in the administration of the scheme. The role of the Managing Agent is mainly administrative and financial in nature and is generally set out in a service agreement entered between the scheme and the managing agent.
A Managing Agent is often mistaken for a caretaker because of the managerial responsibilities but a Managing Agent does not deal with day to day maintenance checks, inspections and repairs of the scheme, however some agents do offer a day to day maintenance plan at additional remuneration.