This is the second article in a three part series on sectional title properties — the Body Corporate and its responsibilities.

The Body Corporate is comprised of all the owners in a sectional title scheme. An investor buying into a sectional title scheme will automatically belong to the Body Corporate on registration of the unit and membership is compulsory.

The Body Corporate is responsible for making sure that the scheme or complex is run efficiently and in accordance to the law.

The following functions of the Body Corporate are set out in the Sectional Titles Act 95 of 1986:

• Budgeting — The Body Corporate must establish a fund for administrative expenses for the sectional title scheme. These expenses may include everything from repairs, electrical supplies, fuel, sanitary and other services and everything that is necessary to manage and administer the complex.

• Set levies — The Body Corporate must determine levies for owners to ensure sufficient funds to manage and administer the complex.

• Banking — The Body Corporate is obligated to open an account with a financial institution.

• Insurance — The Body Corporate has to insure the sectional title property.

• Maintain common property — The Body Corporate must maintain the common property. This includes maintenance of the lifts and keeping the complex or building in a good state of service and repair.

• Comply with authorities — If any municipal regulations compel the Body Corporate to fix something they are responsible to comply.

• Comply with law — The Body Corporate has to comply with all laws relating to the common property and the improvement thereof. This implies that that the members of the Body Corporate must understand the laws pertaining to them. If they don’t they are obligated to hire someone that does.

If you like to follow your own lead, think carefully before buying property in complexes where a body corporate or a homeowners’ association (HOA) makes the decisions.

Sectional title schemes are usually governed by a body corporate that enforces standards and rules, while cluster villages and estates are generally governed by a HOA, notes Berry Everitt, MD of the Chas Everitt International property group.

“And while living in such a secure complex may enable you to live a lock-up-and-go lifestyle and be free of many maintenance chores, it does also mean that somebody else will always have a say in what you may do to the exterior of your home, for example, or just how the levies you pay will be spent.

“So if you have any qualms about leaving such decisions to others, you should do your homework thoroughly before taking the leap.”

Potential buyers should take the following steps:

• Get a copy of the body corporate or HOA’s rules and make sure you understand them. Once you buy a unit, you enter into a contract that you will abide by the rules. Potential conflicts may include restrictions by the Body Corporate on the size, type and number of pets, exterior fixtures such as antennas, clotheslines and flags, fence types and the colour of paint as well as whether home-based businesses are permissible.

• Ask what the monthly levies or contributions will cover and establish how often levies are increased.

• Ascertain that there is an adequate reserve fund to meet unexpected expenses. Without such a fund there is a real danger that your property value may be affected if unforeseen repairs to common property cannot be made due to lack of funds.

• Ask for the minutes of recent meetings of the Body Corporate and the latest financial statements. If these are unavailable, think twice before committing yourself.

“In short,” Everitt says, “you need to be very clear that you are comfortable trading off the freedom to make all your own decisions regarding your property for the convenience of having someone else maintain the property and oversee security.”

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