In many cases we find that buyers tend to find it difficult to separate the Managing Agent from the Developer. There is normally confusion and/or an assumption that this is one person.
DEVELOPER
In most cases the Developer is the builder and seller of the property. Developers carry out the real estate development from researching about the land and identifying development opportunities, construction and selling. In the planning stage, the Developer as prescribed in the Sectional Title Schemes Management Act (STSMA) is required to appoint a managing agent, who would be responsible for the Scheme Management, the compilation of a budget and determination of monthly levies.
MANAGING AGENT
The role of the managing agent is mostly administrative and financially based. The appointment of a reputable Managing agent is crucial as it contributes to having a well-managed scheme. Furthermore, with a full understanding of the STSMA, they would provide guidance to the elected trustees. The role of a managing agent is to manage the common property of the scheme on behalf of the trustees and owners. “The three areas that agents are responsible for include admin, finance and property management. When it comes to administrative duties, the managing agent is responsible for arranging the annual general meeting, taking minutes and following-up on activities, keeping a record of all activities that take place on the premises, arranging building insurance cover and responding to enquires from owners.” In summary, the Developer hands over management and responsibility to the Managing Agent once the first unit has transferred and the Managing Agent takes care of the day to day running of the scheme.
DEVELOPER
In most cases the Developer is the builder and seller of the property. Developers carry out the real estate development from researching about the land and identifying development opportunities, construction and selling. In the planning stage, the Developer as prescribed in the Sectional Title Schemes Management Act (STSMA) is required to appoint a managing agent, who would be responsible for the Scheme Management, the compilation of a budget and determination of monthly levies.
MANAGING AGENT
The role of the managing agent is mostly administrative and financially based. The appointment of a reputable Managing agent is crucial as it contributes to having a well-managed scheme. Furthermore, with a full understanding of the STSMA, they would provide guidance to the elected trustees. The role of a managing agent is to manage the common property of the scheme on behalf of the trustees and owners. “The three areas that agents are responsible for include admin, finance and property management. When it comes to administrative duties, the managing agent is responsible for arranging the annual general meeting, taking minutes and following-up on activities, keeping a record of all activities that take place on the premises, arranging building insurance cover and responding to enquires from owners.” In summary, the Developer hands over management and responsibility to the Managing Agent once the first unit has transferred and the Managing Agent takes care of the day to day running of the scheme.
A snag is a small defect or problem that remains in your property after the building work has been completed. It is typically something that is damaged or broken, not fitted properly or looks unfinished – think a scratch on a window or a missing hinge on a door.
The developer checks and fixes any defects before handover, however it may be possible that something is overlooked.
After a new development is complete, buyers have 90 days to inspect their units and report in writing any snags picked up within that period.
On handover, you will be guided through the channels to follow when completing your snag list and booking your snagging appointment. This is important to ensure the relevant contractors are appointed to attend to the repair needed.
The maintenance of sectional property is not always straight forward because the responsibility, both operational and financial, rests on different people or entities depending on the exact nature of the property.
The National Home Builders Registration Council advises that buyers have 90 days from date of occupation to inspect their units and report in writing any snags/defects picked up within that period
The Sectional Titles Act places the responsibility for the maintenance of the common property squarely on the body corporate. The body corporate must arrange for the maintenance of the common property and payment from the maintenance fund.
On the other hand, owners are responsible for the maintenance of their sections. Anything inside the unit is the responsibility of the owner, unless decided otherwise by the body corporate.
An owner who enjoys rights of exclusive use over some portion of the common property must keep that “exclusive use area” clean and neat. This concept is quite often misunderstood. Exclusive use areas remain common property, owned by all the owners in the scheme in undivided shares, and are thus the responsibility of the body corporate to maintain. The cost of management be it garden service or maintenance is managed through appointed service providers and paid via the levies collected in accordance with the Schemes financial budget.
The National Home Builders Registration Council advises that buyers have 90 days from date of occupation to inspect their units and report in writing any snags/defects picked up within that period
The Sectional Titles Act places the responsibility for the maintenance of the common property squarely on the body corporate. The body corporate must arrange for the maintenance of the common property and payment from the maintenance fund.
On the other hand, owners are responsible for the maintenance of their sections. Anything inside the unit is the responsibility of the owner, unless decided otherwise by the body corporate.
An owner who enjoys rights of exclusive use over some portion of the common property must keep that “exclusive use area” clean and neat. This concept is quite often misunderstood. Exclusive use areas remain common property, owned by all the owners in the scheme in undivided shares, and are thus the responsibility of the body corporate to maintain. The cost of management be it garden service or maintenance is managed through appointed service providers and paid via the levies collected in accordance with the Schemes financial budget.
A Sectional Title Scheme or Homeowners Association is required by law to establish a fund for their Scheme or Association. This is known as the levy fund.
All owners are required to contribute a monthly fee to cover all costs for the maintenance and upkeep of communal areas and needs within the boundaries of the complex/estate.
These may include but not limited to, insurance, security, cleaning, and gardening, etc.
Your managing agent prepares a budget that is presented and approved in the presence of all owners at the Annual General Meeting. The proposed budget is made up of all the costs for the scheme for a specific financial year. The levy for the scheme is determined from that proposed budget.
All owners are required to contribute a monthly fee to cover all costs for the maintenance and upkeep of communal areas and needs within the boundaries of the complex/estate.
These may include but not limited to, insurance, security, cleaning, and gardening, etc.
Your managing agent prepares a budget that is presented and approved in the presence of all owners at the Annual General Meeting. The proposed budget is made up of all the costs for the scheme for a specific financial year. The levy for the scheme is determined from that proposed budget.
The budget approved at the Annual General Meeting determines the levy amount for the scheme. Levies vary from scheme to scheme depending on the costs of that scheme and the cumulative value of services offered.
The Act grants trustees the discretion to increase levies by no more than 10% at the end of a scheme’s financial year but ensures that sufficient notice is given to the residents before implementation.
As a new buyer in a development, it is your responsibility to ask and understand how much the levy is and how the yearly escalations are set up in the scheme.
The Act grants trustees the discretion to increase levies by no more than 10% at the end of a scheme’s financial year but ensures that sufficient notice is given to the residents before implementation.
As a new buyer in a development, it is your responsibility to ask and understand how much the levy is and how the yearly escalations are set up in the scheme.
Rates and Taxes are charges raised by the municipality for services provided in relation to the complex/estate such as refuse removals, roads, and streetlights around the property.
Levies are for the services provided within the boundaries of your estate such as security, cleaning, insurance, maintenance, etc.
Levies are for the services provided within the boundaries of your estate such as security, cleaning, insurance, maintenance, etc.
All alterations and renovations are subject to the approval of the Body Corporate or Home Owners Association. Once approval is received, you can proceed with any changes.
Please note that the Sectional Title Act stipulates that no alterations to units are permitted without the consent of the schemes’ trustees.
Please note that the Sectional Title Act stipulates that no alterations to units are permitted without the consent of the schemes’ trustees.
As a Sectional Title owner, when you want to make alterations to your section you may well need body corporate approval as well as that local authority consent before you can start any improvements. As a freehold property owner, you are not subject to the additional level of governance exercised by sectional title body corporates.
Section 24(3) of the Act stipulates that an owner must first obtain a special resolution of the body corporate authorizing his proposed extension before he is allowed to effect the alterations. This would involve putting a proposal to owners, normally via the trustees, and perhaps asking them for a general meeting where your proposal can be considered and voted upon. Alternatively, you could send or take your proposed resolution to each owner individually and get written consents.
Section 24(3) of the Act stipulates that an owner must first obtain a special resolution of the body corporate authorizing his proposed extension before he is allowed to effect the alterations. This would involve putting a proposal to owners, normally via the trustees, and perhaps asking them for a general meeting where your proposal can be considered and voted upon. Alternatively, you could send or take your proposed resolution to each owner individually and get written consents.
In all our Leogem developed estates, we make sure that we put all the necessary security measures for the scheme. It is then the responsibility of the body corporate and HOA to manage and maintain the common property in a scheme. Therefore, the body corporate – in addition to a security fence or boundary wall – further needs to secure the complex with a suitable security system or employ a security company. Examples of security systems are electrical fences, CCTV cameras and access control gates.
In a sectional title scheme, the owner is responsible for the inside of their unit up until the middle of the wall. The body corporate is then responsible for the areas outside the units up until the middle of the wall from the outside, i.e., the body corporate looks after the outside of the unit and the owner looks after the inside.
The owner has the right to secure their section by installing burglar bars and security gates. An owner may also choose to install a security alarm system that is linked to an armed response company. In an estate, the owner owns the house and can secure the house by installing security gates, burglar bars and alarm systems. In both cases, the owner needs to take any necessary security measures as the body corporate or the homeowners’ association (HOA) is not responsible for it, however it is likely that a guideline to aesthetics and products used exists and should be followed, failing which, the B/C or HOA may instruct the fitting be removed.
In a sectional title scheme, the owner is responsible for the inside of their unit up until the middle of the wall. The body corporate is then responsible for the areas outside the units up until the middle of the wall from the outside, i.e., the body corporate looks after the outside of the unit and the owner looks after the inside.
The owner has the right to secure their section by installing burglar bars and security gates. An owner may also choose to install a security alarm system that is linked to an armed response company. In an estate, the owner owns the house and can secure the house by installing security gates, burglar bars and alarm systems. In both cases, the owner needs to take any necessary security measures as the body corporate or the homeowners’ association (HOA) is not responsible for it, however it is likely that a guideline to aesthetics and products used exists and should be followed, failing which, the B/C or HOA may instruct the fitting be removed.
To obtain a dustbin from the municipality, the Pikitup guidelines require you to have your rates and taxes account number ready when doing your application. Therefore, it is quite important to get in touch with Leogem (your preferred developer) in finding out how to go about opening your rates and taxes account. Once the account is ready, Leogem will furnish you with the Pikitup guidelines to get the bin. Househoppers is the appointed company to assist our clients with all their municipal accounts. They assist in the opening of the rates and taxes, water, and electricity accounts (City Power).
On handover, the after sales agent will make sure that you receive the access cards and all the necessary needed information for you to enter and leave the estate/complex with ease. You will also be introduced to the appointed managing agent for the scheme. They will take the baton from the developer and guide you through all necessary stages and regulations around sectional title living.
Putting this in the simplest terms; sectional title speaks all about complex living, you own everything within the walls of your property, and whatever is outside those walls be it, hallways, lifts, gardens, and recreational spaces is owned by the body corporate and looked after by the body corporate through M/A. With freehold title, in contrast, you own almost everything from the inside of your house and any out-buildings, land, leisure areas, etc. Please also note that most freehold estates would have a constitution guiding them, keeping some form of uniformity via a Architectural Guideline ensuring the upkeep of value.
