FAQ

LEVIES - FREQUENTLY ASKED QUESTIONS

• WHAT IS A LEVY?
There are costs associated in running a scheme that needs to be paid by the body corporate. In order to pay for these costs, funds needs to be appropriated from the owners in the scheme through the collection of levies.
Some of these costs include: insurance, rates and taxes, repairs, maintenance, etc.


• HOW IS A LEVY CALCULATED?
Levies are calculated yearly based the budget approved at the yearly AGM.


• CAN THE LEVY BE CHANGED AT OTHER TIMES?
Yes, the trustees may impose a special levy in the event of expenses of an unforeseen nature.


• PROCEDURES OF NON-PAYMENT OF LEVIES
All owners who fail to pay arrear amounts due by them is also liable for all the costs incurred to recover these arrear amounts. This includes all the legal costs, collection commission and charges incurred.

MANAGEMENT AGENT : FREQUENTLY ASKED QUESTIONS

• WHAT IS A MANAGEMENT AGENT?
A management agent is an individual or firm appointed by a body corporate or home owners association to manage the property on their behalf.

The responsibility of the managing agent is to the common property which does not include the management of the individual homes, and can therefore not be held liable for the duties of the home owner. Responsibilities of home owners include: repairs to the inside of homes, leases between owners and tenants, personal security requirements as well as the settlement of personal accounts.

Although the management agent has the contractual responsibility for the management of the property, the full responsibility for the management will always remain the responsibility of the Trustees of a Body Corporate or the Directors of a Home Owners Association.


• WHAT QUALIFICATIONS SHOULD A MANAGEMENT AGENT HAVE?
All good management agents will at least be registered with the Estate Agents Affairs Board (AEEB) while also being associated with the National Association of Managing Agents (NAMA).

This is important as;
All NAMA members have to satisfy an independent body of its competence and are required to abide by a code of practice.
All agents registered at the EAAB are issued with a Fidelity certificate that insures the agent's client's funds against any irregularities as well as a refund in the event of misappropriation of funds.

Infinitum Holdings (Pty) ltd is a member in good standing of NAMA and holds an EAAB certification for both the company and its principle.


• WHY DO WE NEED A MANAGEMENT AGENT?
Positions held in Body Corporates as well as Homeowners Associations are unpaid and rely on the donation of time and energy from its members. As a result of this, most board members have a limited amount of time to focus on complex management issues.

With this in mind most governing bodies take the decision to hand this vital task of management over to a professional entity that are able to effectively deal with the challenges that accompany management.


• HOW MUCH CAN I EXPECT TO PAY FOR THIS SERVICE?
The National Association of Managing Agents provides a recommended management rate for a standard amount of work done. There are however special cases where complexes that require a more comprehensive service agreements.

If you would like to request a quote then please contact our offices and make an appointment so that we can meet and discuss your needs and then quote accordingly.


• WHAT SHOULD I LOOK FOR IN A MANAGEMENT AGENT
When inspecting a management agent be sure to check that:

The company you inspect have previous experience in managing schemes similar to your own.

The company has good references

The company is registered with NAMA (National Association of Management Agents) and holds an EAAB (Estate Agents Affairs Board) certification.

The company can effectively deal with arrears collection and disputes.

The company can provide full accounting services for budgeting and year-end accounting

The company has either in-house or outsourced contractors who can deal with all the responsibilities regarding the management needs of your specific complex.

SECTIONAL TITLE - FREQUENTLY ASKED QUESTIONS

• WHAT IS A BODY CORPORATE?
A body corporate is the name used to describe the collective owners of homes in a sectional title scheme. It is the body corporate that controls and runs the scheme. The day-to-day operations and management of the body corporate is the responsibility of the trustees.

The trustees are appointed at the body corporate's annual general meeting where members of the scheme are each entitled to one vote - providing that owner is not in serious breach of the conduct rules and that their levy payments are not in arrears.


• WHO ARE THE TRUSTEES?
Trustees are in most cases owners in a scheme who are entrusted with the responsibility of the day-to-day operations and management of the body corporate.
Trustees work on a voluntary, unpaid basis but may under special circumstances be remunerated for their work.


• WHO MAKES THE RULES?
The management and conduct rules are established at the inception of a scheme. The management rules direct the running of the scheme, while the conduct rules direct the conduct of residents and guests in the scheme.


• CAN THE RULES BE CHANGED?
Yes, the rules can be changed or amended as long as it does not go against the intensions of the Sectional Title Act.


• WHAT PART OF A SECTIONAL TITLE BELONGS TO ME?
As an owner you own the inside of your property from wall to wall and floor to ceiling. You also own a share of the common property.


• WHAT IS COMMON PROPERTY?
Common property is that portion of the scheme that is which does not form of any section. Examples of common property include gardens, driveways and swimming pools