How trustees are nominated and elected in sectional title schemes

Private Property South Africa
Private Property Reporter

As the owner of a sectional title property, becoming a trustee is a good way to keep your finger on the pulse of your property scheme’s maintenance and expenses.

The process of nominating and electing trustees is important, and this process should be in accordance with the Prescribed Management Rules.

How to nominate and elect new trustees, in accordance with the Prescribed Management Rules:

  • Owners should put their nominations in writing and submit these, along with the nominee’s written consent at least 48 hours before the next AGM or general meeting.
  • If there are too few nominations, they can be taken at the AGM, provided the nominee has given consent.
  • The number of trustees decided on, at the AGM, needs to be 2 people or more.
  • It’s important to note that the majority of trustees elected must be homeowners or spouses of homeowners, and should this not be achieved, a re-vote should occur after the non-owner with the least amount of votes has been eliminated.
  • Once all the nominations have been received, the trustees will be determined by a vote that the chairperson will tally.

According to Michael Bauer of property management company IHFM, it’s a great idea for owners (as opposed to renters) to be trustees. While it’s relatively time consuming, owners tend to be more invested in making sure the property is well maintained and finances are appropriately spent.

Why it’s important for homeowners to become trustees:

  • Homeowners can make sure their investment runs smoothly, as they have a certain amount of control over the property scheme.
  • Homeowners can keep tabs on the income and expenses of the body corporate, and ensure that the money is spent in the best way possible for all residents.
  • Issues of maintenance and disputes between other residents can be dealt with appropriately, and once a trustee, a homeowner can be sensitive to these issues by being aware of them.
  • Homeowners can then be immediately involved in decisions that affect their ability to sell, such as levy increases and special levies.
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