Recent amendments to the Sectional Title Schemes Management Act 2011 ( Act No 8 of 2011 ) has seen the inclusion of strict requirements for Bodies Corporate.

The new amendments will have a significant impact on how Bodies Corporate will have to manage budgets as well as the maintenance of the properties.

AccuSpec realizes that for some Bodies Corporate the new requirements can be a large and daunting task.

We have developed a tailormade strategy and system to assist trustees and bodies corporate to move towards compliance.

Recent amendments to the Sectional Title Schemes Management Act 2011 ( Act No 8 of 2011 ) has seen the inclusion of strict requirements for Bodies Corporate.

The new amendments will have a significant impact on how Bodies Corporate will have to manage budgets as well as the maintenance of the properties.

AccuSpec realizes that for some Bodies Corporate the new requirements can be a large and daunting task.

We have developed a tailormade strategy and system to assist trustees and bodies corporate to move towards compliance.

ABOUT SECTIONAL ACT CHANGES


OVERWIEW OF MAJOR CHANGES TO THE SECTIONAL TITLE ACT

  • Registration of Scheme with CSOS
  • File Annual Financial Statements with CSOS
  • Establish a Reserve Fund for Maintenance Incl. Annual Budgets
  • Lodge Schemes Governance Documents with CSOS
  • Insure against Risk of loss
  • Prepare a Detailed 10 Year Maintenance, Repair & Replacement Plan (MR &R Plan )

ABOUT SECTIONAL ACT CHANGES


OVERWIEW OF MAJOR CHANGES TO THE SECTIONAL TITLE ACT

  • Registration of Scheme with CSOS
  • File Annual Financial Statements with CSOS
  • Establish a Reserve Fund for Maintenance Incl. Annual Budgets
  • Lodge Schemes Governance Documents with CSOS
  • Insure against Risk of loss
  • Prepare a Detailed 10 Year Maintenance, Repair & Replacement Plan (MR &R Plan )

ABOUT section 22 – MR&R plan


OVERWIEW OF SECTITON 22 THAT REFERS TO A 10 YEAR MAINTENANCE, REPAIR & REPLACEMENT PLAN

  • A detailed maintenance plan


    A written Maintenance, Repair & Replacement plan, for the common property setting out:

    Detailed list of Major Capitol maintenance items.
    The present condition of those items.
    A timeframe or program for Maintenance, repair & Replacement ( MR&R ).
    Estimate cost of Maintenance ( MR&R ).
    Expected life of maintenance items or components once maintained.
    Other relevant information.
  • a specified reserve fund


    A separate Maintenance Reserve Fund set up apart from the Administrative Fund:

    The Reserve Fund must be used for implementation of the MR&R Plan in Rule 22.
    The Reserve Fund requires compulsory annual contributions and a specified formula for contributions, is laid out in the Act.
    Needs to be reviewed annually & separate annual financial statements of the fund to be submitted to CSOS.
  • time frames & action plan


    Specific Timeframes & Action Plans need to be laid out for implementation of maintenance schedule:

    The MR&R Plan takes effect on its approval by the members at a general meeting.
    Provided that on approval of such a plan, members may lay down conditions for the payments of money from reserve fund.
    The timeframes & action plans need to be reviewed and adjusted annually.
  • Trustees duties


    The Trustees need to report the following at each annual general meeting:

    The extent to which the approved MR &R Plan has been implemented at each general meeting.
    Needs to include projected and unexpected expenses, and include readjustments to the MR&R Plan accordingly at each general meeting.
    The trustees are tasked with managing the maintenance plan annually, and report through detailed feedback at each annual general meeting.
  • A detailed maintenance plan


    A written Maintenance, Repair & Replacement plan, for the common property setting out:

    Detailed list of Major Capitol maintenance items.
    The present condition of those items.
    A timeframe or program for Maintenance, repair & Replacement ( MR&R ).
    Estimate cost of Maintenance ( MR&R ).
    Expected life of maintenance items or components once maintained.
    Other relevant information.
  • a specified reserve fund


    A separate Maintenance Reserve Fund set up apart from the Administrative Fund:

    The Reserve Fund must be used for implementation of the MR&R Plan in Rule 22.
    The Reserve Fund requires compulsory annual contributions and a specified formula for contributions, is laid out in the Act.
    Needs to be reviewed annually & separate annual financial statements of the fund to be submitted to CSOS.
  • time frames & action plan


    Specific Timeframes & Action Plans need to be laid out for implementation of maintenance schedule:

    The MR&R Plan takes effect on its approval by the members at a general meeting.
    Provided that on approval of such a plan, members may lay down conditions for the payments of money from reserve fund.
    The timeframes & action plans need to be reviewed and adjusted annually.
  • Trustees duties


    The Trustees need to report the following at each annual general meeting:

    The extent to which the approved MR &R Plan has been implemented at each general meeting.
    Needs to include projected and unexpected expenses, and include readjustments to the MR&R Plan accordingly at each general meeting.
    The trustees are tasked with managing the maintenance plan annually, and report through detailed feedback at each annual general meeting.