Sectional Title Body Corporate: Rules and Function
Category Principal's Message
What many people dont realise when signing an offer to purchase a sectional title property is that in doing so, they are agreeing to the conditions of buying into that scheme and become members of a group, the body corporate. The body corporate is responsible for the day to day running and financial management of the scheme. The body corporate is the collective name given to the owners of the units and common property within a sectional title scheme, and this comes into being when the developer transfers the first unit to its new owner. The developer, in fact, needs to call a meeting within 60 days of the body corporate being formed and at this inaugural meeting, according to the Prescribed Management Rules (PMR), will hand over the sectional plan and a certificate from the local authority indicating that all the rates due by him have been paid. The body corporate should receive paperwork pertaining to the income and expenditure regarding management of the scheme and any money received in the time between the first handover of a unit and the formation of the body corporate. The body corporates function is to manage and maintain the property, which includes the common property, including the driveways, common green spaces, swimming pool and clubhouse, and exclusive use areas. Sectional title schemes have many benefits as expenses are shared between the owners, which allows residents many extras that they might not be able to afford if living in a freestanding home. Many schemes have full security, and often have amenities such as swimming pools, gyms, tennis courts, laundromats, clubhouses, and large green communal gardens, all of which cost extra to maintain. This is why sectional title property has become so popular - the convenience and the communal living, which often offers a higher standard of living at a lower cost. Owners, however, need to be aware of what their responsibilities are when deciding to buy into a scheme.
Author: Property 24
