Serving as a trustee for a sectional title scheme is a significant responsibility that should not be taken lightly. Many young homeowners volunteer for this role without fully grasping the scope of their duties and potential liabilities. The truth is trustees can be held personally liable for certain failures in the management of the complex. It is crucial to understand this before signing up for such a weighty responsibility.
To truly comprehend the obligations of a trustee and the regulations surrounding sectional title property ownership, homeowners must familiarise themselves with the Sectional Title Schemes Management Act (STSMA), preferably even before purchasing into a scheme. Not everyone realises that owners within a Sectional Title scheme may be held liable for the debt of the Body Corporate. This underscores the importance of assessing whether the scheme is being managed correctly and that the financial statements of the Body Corporate are in order before committing to buy.
Personal liability: A harsh reality for Trustees
Trustees at community schemes such as sectional title complexes, homeowners’ associations, retirement housing schemes, share block companies, and housing cooperatives are often unaware that they can be held personally liable and even sued for failures in governing the community scheme. The STSMA and the Community Schemes Ombud Services Act outline provisions where trustees could be held liable, including instances of gross negligence, fraud convictions, or breaches of their fiduciary duties of care, diligence, impartiality, and acting in the best interests of beneficiaries.
Among the trustees’ responsibilities is registering the scheme and its rules with the Community Schemes Ombud Service (CSOS), a critical step that around half of the roughly 70,000 community schemes in South Africa have yet to complete.
A recent court case has reinforced the fact that the body corporate of a sectional-title scheme is responsible for the maintenance and upkeep of the common property and may be liable for damages if its negligence in this regard results in personal loss or injury. This means that, as an owner of a sectional-title property, you are partly responsible as a default member of your body corporate to ensure the scheme as a whole is well maintained and that it has liability insurance in place. Although the property management function may be outsourced to an agent, the responsibility for maintenance ultimately lies with the body corporate and its board of trustees.
Overcoming challenges with sectional title training courses
To navigate the complexities of scheme management and mitigate the risks associated with trusteeship, investing in comprehensive sectional title training courses is essential. Through these programmes, trustees gain a deep understanding of their legal responsibilities, financial management techniques, maintenance and repair planning strategies, dispute resolution methods, effective communication practices, and proper record-keeping procedures.
Trustee training courses also cover crucial aspects of governance, ensuring that trustees understand and implement proper governance structures, maintain transparency, and make informed decisions in the best interest of the scheme and its members.
At Fitzanne Estates, we understand the importance of empowering trustees with the right tools and knowledge. That’s why we offer comprehensive sectional title training courses tailored to the specific needs of trustees in your area. Our training programmes are designed to be interactive and engaging, allowing trustees to learn from experienced professionals and industry experts. We believe that in-person training offers a unique opportunity for trustees to ask questions, engage in discussions, and learn from the collective experiences of the group.
While online training can be convenient, there is no substitute for the personalised attention and collaborative learning environment that in-person training provides. Our expert trainers ensure that each participant leaves with a deep understanding of their roles and responsibilities, as well as practical strategies for effective scheme management.
Trustee Training Courses with Fitzanne Estates
If you are a trustee seeking to enhance your knowledge, skills, and confidence in managing your sectional title scheme, consider signing up for a sectional title training course with Fitzanne Estates. Whether you prefer individual or group training, our programmes are tailored to meet your specific needs.
Remember, knowledge is power, and by equipping yourself with the right tools through sectional title training courses, you can confidently navigate the complexities of scheme management and create a thriving community for all residents.
Contact us today.
Read more:
Investment opportunities in Pretoria from the semigration trend
The Future of Renting in South Africa: Trends and Predictions
Navigating the New-Build Property Market in South Africa: An In-Depth Guide for Buyers
Media contact: Cathy Burroughs, +27 82 222 9198, marketing@fitzanne.co.za https://www.fitzanne.co.za/
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.
Website: https://www.fitzanne.co.za/
LinkedIn: Fitzanne Estates
Twitter: @FitzanneEstates
Facebook: @fitzanne.estates
Instagram: @fitzanneestates
YouTube: Fitzanne Estates
Podcast: Fitzanne’s Property Exchange
