Section 37 of the SectionalTitle Act assigns certain statutory duties to the bodies corporate and trustees of such schemes who, in terms of the same act, have to be appointed soon after the scheme’s inauguration.
She says maintenance is important because owners suffer financially and psychologically if their scheme is neglected: its units’ market values fall, and residents pick up a negative attitude to the place that should be providing them with refuge and recuperation.
Another section of the Act (39(1)) spells out these duties and, says Catherine Cockcroft, sales manager of the levy funding and collection company, Propell, it is important to notice that maintenance of the property is high on the trustees’ list.
Although this is not always accepted ongoing maintenance is a body corporate’s statutoryduty, says Cockcroft. “Failure to carry out this duty could provide grounds for the dismissal of the trustees or even the appointment by the court of an administrator to take complete control of the scheme.”
She says maintenance is important because owners suffer financially and psychologically if their scheme is neglected: its units’ market values fall, and residents pick up a negative attitude to the place that should be providing them with refuge and recuperation.
Equally serious, is the fact that neglecting a building will always greatly increase the list of the maintenance and repairs when these are finally undertaken, says Cockcroft.
“When maintenance is delayed, the ultimate cost of putting matters right will always escalate.”
She says the argument so often put forward for holding back on essential maintenance tasks is that the funds are simply not there. “But this should never be accepted because trustees have the right to initiate steps for raising a special levy or dealing with a funding organisation like Propell which is prepared to fund this type of work, sometimes, however, insisting that they also take over the levy collection.”
In such cases, Cockcroft says Propell usually offers one to five year repayment periods charged at market related interest rates.
When repair/upgrade tasks are tackled, she says, trustees should obtain at least two tender quotes, preferably more, but it must always be kept in mind that the cheapest solution is notalways the best one. If necessary, theadvice of an independent expert suchas a maintenance consultantshould besought, before a final decision is made.
She says Propell always recommend that a professional consultant be engaged to write the specifications for larger more complex projects.
Often the funding problems on sectional title schemes stem from trustees failing to understand the need for an ongoing maintenance plan, supported by an adequate budget. She says such plans, in most cases, involve allowing for a 10 to 15% surplus on the annual expenses voted for at the AGM. If a surplus fund is built up over time, the need for drastic special levies will be much reduced.
Apart from ensuring that reputable reliable contractors are appointed, trustees, says Cockcroft, should also see to it that they have a health and safety plan which lays down the precautions the contractors must take while on site. In addition, a copy of the labour regulations and the Occupational Health and Safety Act should be included as an addendum to the contract document and the contractor should agree in writing to abide by these.
Cockcroft warns that trustees who give the go ahead on contractual work without first checking on a contractor’s insurance cover could quite possibly be held liable for negligence in the event of an accident
“So, in addition to being responsible for the maintenance of their schemes, trustees must then inform themselves about their responsibilities regarding contractors and the quality of the work done for them.”
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