By The Paddocks Club Team

Below are examples of two questions on the Paddocks Club discussion forum. We want to show you what is available to our Community members!

Separate buildings, separate maintenance liabilities?

Member’s question:

In a Sectional Title Block, there are two buildings completely apart from one another.
The first three units have different owners and the other three units are owned by one person.

The following maintenance needs to be done to the building:

– Paint Work
– Metal Work
– Roofing
– Guttering

The owners of the first three units are happy and have agreed to cover the cost for the maintenance whereas the owner of the second three units has advised that their building is separate and they will do their own maintenance if it needs fixing.

Is the body corporate responsible to ensure that the outside of the building is maintained?

Anton’s reply:

The body corporate is indeed responsible for maintenance of common property and for the costs of the maintenance. The maintenance bills are paid out of the administrative fund, in compliance with section 37(1)(a). All owners contribute to the administrative fund according to the participation quotas of the section/s they own.

It is possible for a body corporate to isolate specific expenses and make them payable by specific owners rather than according to PQ. The body corporate must make a rule in terms of section (32)(4) to make the alternative arrangements. A special resolution is required plus the written consent of any owner adversely affected by the terms of the rule.


Authority to raise a bank loan

Member’s question:

Good morning team

Section 38e allows a body corporate to raise a bank loan.

My question is – do the trustees have the authority to arrange this, or do they need approval of the owners

Anton’s answer:

Technically, the trustees have the power to raise a bank loan at their own discretion. However, if they have any doubts or think a significant proportion of owners might disapprove, they should call a general meeting and obtain a directive from the body corporate one way or the other.

The Sectional Titles Schemes Management Act will require a special resolution to authorise a bank loan, which would be an additional reason to get a directive at this stage.

Article reference: Paddocks Press: Volume 11, Issue 2, Page 4.

Professor Graham Paddock, Anton Kelly, Carryn Durham and Zerlinda van der Merwe are available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

Back to Paddocks Press – February 2016 Edition.