Community Scheme Q&A with TVDM Consultants (Sept.23)

1. If the chairperson gives an owner permission to undertake alterations, is that sufficient?
 
Although a trustee, in a sectional title scheme, may be delegated a portfolio, there are items of business of the administration, management, control and governance of the scheme, that require a majority trustee resolution, including alterations and/or renovations to a section, and to an extent, the common property. Therefore, getting the chairperson’s “approval” of your application when you bump into them in the local PnP, is not valid.
 
2. Who can be a trustee?
 
In a body corporate, any person, except the managing agent or an employee of the body corporate, except if they are also an owner, can be nominated and elected as a trustee. 
 
3. Must a trustee reside in the scheme?
 
Unless the body corporate’s management rules have been amended, there is no requirement that a trustee reside in the scheme, the city or even the country in which the scheme is based.
 
4. How do managing agent’s fees work?
 
A managing agent’s management agreement will set out the monthly management fee, including the services offered in exchange for that fee. Anything not forming part of these services is normally set out as an annexure to the agreement, as additional services, sometimes to be pre-quoted / pre-approved / pre-agreed. These additional services may include CSOS dispute resolution, public officer, POPIA / PAIA compliance, additional or after hours meetings, travel etc. A managing agent, if a registered debt collector may also charge fees for such service rendered.
 
5. Can a body corporate recover legal fees from an owner?
 
Yes, if the owner agrees, or a Court or Adjudication Order provides for same, or the amended management rules allow for such recovery.
 
6. Can a body corporate disconnect services for non-payment?
 
No. CSOS or the Court must be approached.
 
7. When is an annual general meeting held?
 
In a body corporate, once a year, within four months of the end of the financial year.
 
8. Must the maintenance, repair and replacement plan be approved?
 
Yes, it must be tabled at an annual or special general meeting for member approval by means of an ordinary resolution. It is sensible to have the plan tabled at the AGM as it will determine the reserve fund budget.
 
9. Must an HOA submit their governance documents to the CSOS?
 
Each community scheme must submit their governance documentation to the CSOS for their records, but unlike body corporate amended management and conduct rules, if there are amendments to HOA constitutions / MOI’s or rules, these do not have to go to CSOS for review and approval.  The CSOS do, if you choose, quality assure HOA governance documentation.
 
10. Must an HOA have a reserve fund?
 
No, unless the constitution or memorandum of incorporation require it. The term reserve fund, and maintenance, repair and replacement plan, are statutory requirements, under the Sectional Titles Schemes Management Act, for bodies corporate, and are not applicable to HOA’s.