If you are a property owner in a Sectional Title Scheme in South Africa, you’ve probably received your fair share of invitations to those dreaded Annual General Meetings (AGMs).
We say dreaded because, let’s be honest, everyone has a busy schedule, and the idea of sitting in on a long meeting is not exactly the rosiest of prospects. However, if you own property in a scheme, attending the AGM is something that should be high on your priority list.
How so? Let’s start at the beginning. Here are four important things you should know about your scheme’s AGM in South Africa.
It’s the one time per year you get to voice your opinions and concerns
“Owners only have the opportunity once per year to take part in important decision-making initiatives that impact their scheme’s finances, as well as other aspects of the running thereof,” advises Pearl Scheltema, CEO of Fitzanne Estates, a Property Management Agency in Gauteng. “More often than not, owners who are unhappy with the way things are managed at their scheme are those who neglect to attend the annual general meeting.”
READ MORE HERE >> Legal Requirements of an AGM: What Scheme Executives Must Know
The AGM is the ideal platform to provide directives for Scheme Executives
There has been a lot of emphasis on the responsibilities of Scheme Executives of late, pointing out that they must be experts regarding the interests of the schemes in which they serve. However, they also require directives to do their jobs properly.
“Aside from providing a platform for owners to weigh in on the financial aspects of running and maintaining their building, the AMG also facilitates the election of Scheme Executives. This process includes one very important agenda item called ‘directions and restrictions on trustees’, which means that owners can direct certain assignments and requests to trustees pertaining to the year that follows during the AGM,” Scheltema advises.
If you don’t receive news about an AGM you should be asking why
While one fewer meeting is likely to be good news for most busy professionals, the lack of notice regarding a sectional title AGM should sound immediate alarm bells for property owners.
“Your scheme’s annual general meeting is a legal requirement as set out in the Sectional Titles Schemes Management Act 8 of 2011. It must be conducted once per year, no later than four months following your scheme’s financial year end (normally the last day of February). If you don’t receive notice about it, you need to be asking why,” Scheltema advises.
IMPORTANT: PMR 17(5) provides that notice must be given to all owners, all holders of registered mortgage bonds over units who have advised the body corporate of their interest, as well as any managing agent/s involved.
READ MORE HERE >> The Scheme Executive Guide to an AGM
The support of a Property Management Agency can streamline things considerably
“If you feel overwhelmed by your responsibilities as an owner of a unit in a Sectional Title Scheme, having a knowledgeable Property Management Agency by your side can make all the difference,” says Pearl. “A Property Management Agency and its Property Managers are immersed in the legal aspects of this specialised area of the property sector every day, and can advise you regarding your rights and obligations, and assist you in fulfilling them efficiently.”
Keep your eye on our Fitzanne platforms for more helpful insights on the management of your properties as a landlord, property owner, and property investor in South Africa.
Our seasoned team of Property Managers are waiting in the wings to provide you with more information about property management, as well as modular online training options for sectional title executives.
More about Fitzanne Estates
Fitzanne Estates (Pty) Ltd is a Property Management Company that can sufficiently administer your property investment to the benefit of the Landlord, the Body Corporate, and the NPC – Non-Profit Company. Services include Letting, Sectional Title Management, Full Title Management (NPC – Non-Profit Company) and Sales.
LinkedIn: Fitzanne Estates
YouTube: Fitzanne Estates
Podcast: Fitzanne’s Property Exchange