Being a trustee in a Sectional Title Scheme is a significant responsibility. As a key decision-maker, you play a crucial role in managing the complex, maintaining financial stability, and ensuring legal compliance. However, many trustees take on the role without fully understanding their duties or the laws governing sectional title management. Without proper knowledge and training, mistakes can lead to costly disputes, financial losses, or even legal consequences.
So, what exactly should every sectional title trustee know about property management? Here’s a closer look at the key responsibilities and legal considerations that come with the role.
Understanding your role as a Trustee
A sectional title trustee is elected by the members of the body corporate to oversee the administration of the complex on their behalf. This means that trustees are responsible for making decisions that affect the property and the well-being of all unit owners.
As a trustee, your primary duty is to act in the best interests of the body corporate. You are entrusted with managing the property’s finances, maintenance, and compliance with the law. However, trustees must remember that they are not the owners of the complex—they are simply caretakers, ensuring that the scheme is run efficiently and fairly.
Common mistakes Trustees make – and how to avoid them
Even well-intentioned trustees can make mistakes if they lack proper training and experience. One of the most common pitfalls is poor financial planning. Without a well-structured budget that accounts for both routine expenses and long-term maintenance projects, Sectional Title Schemes can find themselves facing unexpected costs. This often leads to special levies, which place financial strain on residents and can create dissatisfaction within the community.
Another frequent issue is the inconsistent enforcement of scheme rules. Trustees are responsible for ensuring that all residents adhere to the conduct regulations, but if these rules are not applied fairly and consistently, it can lead to frustration and disputes among homeowners. A trustee’s role is to create an environment where all residents feel that rules are enforced objectively and not based on personal relationships or selective decision-making.
Legal compliance is another critical area where trustees often falter. The Sectional Titles Schemes Management Act (STSMA) sets out specific requirements that bodies corporate must follow, yet many trustees are unaware of the details. Ignoring these obligations can lead to non-compliance, which in turn can result in penalties, legal disputes, or difficulties in managing the scheme effectively. Staying informed about legal responsibilities is essential to avoiding costly mistakes and ensuring that the scheme remains compliant with all regulations.
Miscommunication is also a major challenge in sectional title management. A lack of transparency between trustees and residents can create misunderstandings, resistance to decisions, and even conflict. Residents need to be kept informed about important matters such as levy increases, maintenance plans, and rule changes. Clear, open, and regular communication fosters trust within the community and helps ensure that everyone is on the same page.
By investing time in education and staying up to date with industry best practices, trustees can avoid these common mistakes and fulfil their responsibilities more effectively.
Why sectional title training courses are essential for trustees
Many trustees take on their role without prior knowledge of property management or sectional title laws. This often leads to confusion, frustration, and even legal trouble. Proper training ensures that trustees have the knowledge and confidence to manage their complex effectively and legally.
At Fitzanne Estates, we offer comprehensive sectional title training courses designed to help scheme executives understand their roles, responsibilities, and legal obligations. Our sectional title training courses provide practical insights, real-world case studies, and expert guidance on financial management, dispute resolution, and compliance.
Invest in your knowledge today. Contact us to learn more about our sectional title training courses.
