The Duties and Obligations of Sectional Title Trustees

As a sectional title trustee there are certain duties and obligations you must fulfill as part of the sectional title solutions within the property you provide. Professional property management and sectional title management companies must do the following in order to fulfill these duties:

The Body Corporate

As a trustee you have been appointed by the owners in a sectional title scheme to fulfill all fiduciary duties on behalf of those living under the care of a sectional title management company. Professional property management services will appoint a trustee for their clients who will act as a part of the body corporate and be trusted to act honestly in favour of both what the residents need and the interests of the body corporate. Their main aim is to protect the investment of the various owners that they have put into the complex property/properties.

Before agreeing to this position the appointed trustee must disclose any conflicts of interest as they may not profit from decisions made in the body corporate in anyway. This is often times the case which is why a sectional title management company may be best to get a completely unbiased trustee to represent your group of property owners and residents. This way you ensure there will be no conflict of interests, and care as well as skill will be applied in order to benefit all parties.

Sectional Title Trustees are Expected to:

  • Ensure that all owners pay their levies towards the costs of running the complex monthly, on time and in full.
  • Ensure that the collected levies are put towards the actions they said they would cover, or otherwise banked accordingly.
  • Ensure owners that are late on payments bring their accounts up to date instead of coasting on the timely payments of their fellow owners.
  • Ensure that all expenses as specified in the budget are not exceeded.
  • Ensure that all payments determined by the budget are paid on time and in full.
  • Ensure common property is well looked after so it does not depreciate in value due to negligence.
  • Ensure all insurances for the complex are in place so owners’ investments are never at risk.
  • Ensure all owners and tenants abide by the rules set out by the owners of the complex properties.
  • Hold other trustees accountable and ensure they abide by the stipulations of the Sectional Titles Act.
  • Ensure all other parties, including the professional property management members, abide by the stipulations of the Sectional Titles Act.

For more information on property management and sectional title solutions contact us at Mansfield Property Solutions and we will happily answer any questions you may have.

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