Appointing Scheme Executives is one of the most significant decisions that Bodies Corporate must make each year. Scheme Executives are an essential component of a Sectional Title Scheme, and they are expected to carry out their responsibilities with the best interests of the scheme in mind. For this reason, it is imperative that Scheme Executives understand their roles and responsibilities.
Why Scheme Executives are necessary
The Body Corporate appoints Scheme Executives to execute the functions and exercise the powers of the Body Corporate in making day-to-day decisions concerning the scheme so that it’s not required for owners to be consulted every time a decision needs to be made. Scheme Executives save a scheme time and energy, and they can keep the scheme on track financially and in terms of building maintenance, communal areas, employment, and so on.
At the AGM, the Body Corporate elects Scheme Executives. Nominations must be submitted in writing. In most cases, Scheme Executives give their time and energy for no monetary compensation. If duly nominated, Scheme Executives may be re-elected at succeeding AGMs. To keep the Sectional Title Scheme working effectively, the Scheme Executives can work with a Managing Agent.
While Scheme Executives have the authority to make decisions without the permission of the Body Corporate, they must do so honestly and in good faith, while also being fair and following due process.
Basic toolkit for Scheme Executives
To be an informed and effective sectional title Scheme Executive, the following is needed:
- A copy of the Sectional Titles Schemes Management Act (STSMA)
- A copy of the Registered Management Rules
- A copy of the Conduct Rules
- A copy of the Community Schemes Ombud Service Act
- A copy of the Sectional Title Plan for your scheme
- A clear head and a healthy dose of common sense
- A hands-on approach, as well as clear communication, are essential.
- To behave in good faith, for the interest of the scheme, and without personal financial gain.
The above toolkit will be an ideal starting place for Scheme Executives to grasp what they will need to know in order to carry out their responsibilities in accordance with the law and the rules of the scheme they serve. In addition to the above toolkit, Scheme Executives should invest in training for property trustees.
Scheme Executive Training
To efficiently and lawfully manage a scheme, Scheme Executives must be well-versed in the Sectional Titles Schemes Management Act (“the STSM Act”), the scheme’s management and conduct guidelines, and the Sectional Titles Act. Furthermore, they must be familiar with the rules of the Community Schemes Ombud Service Act governing dispute resolution, the Community Schemes Ombud Service “the CSOS” levy, and the CSOS regulations governing scheme executives’ duties and fidelity insurance.
There is a slew of other legislation they must be aware of, some of it in great detail. Local municipal bylaws, occupational health and safety regulations, and labour legislation all come to mind.
The best way for new Scheme Executives to get on top of their duties and responsibilities is to invest in training for property trustees. Fitzanne Estates offers comprehensive training for property trustees and guidelines as to what is expected of you as a Body Corporate member, Scheme Executive, or Scheme Executive through our unique training courses.
The Essential Guide for Scheme Executives
Everything you need to make a success of your new role as Scheme Executive in a Sectional Title Scheme.
What will you learn?
- The Workings of Sectional Title, Explained
- The Advantages of Sectional Title Schemes
- Decision Making within Sectional Title Schemes
- Understanding how levies are calculated in your Sectional Title Scheme
- …and more!
Get your FREE Scheme Executive training eBook and start your Scheme Executive journey today!
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.
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