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Nature of a Sectional Title Body Corporate

With all the technical terms in sectional property, many people get confused about the definitions & purposes of various bodies & people. Let’s look at the basics of the sectional Title structure.

A Body Corporate is created automatically as soon as a unit is transferred from the developer to any other person. At that moment, the body corporate is created for the scheme and the developer and the other owner are the first members. As more units are transferred and registered in the names of new owners, they become members of the body corporate also. So in other words every owner in a scheme property is automatically a member of the ‘’Body Corporate’’

MPM Property Management

The Sectional Title Act & Sectional Title Schemes Management Act, as well as provincial laws and municipal by-laws,  form the basis of laws that govern sectional living. In addition, a body corporate is regulated by:  • Scheme rules;  • Owners’ decisions, and • Trustees’ decisions.

The Trustees are thus the elected managers of the scheme, the “executive” organ of the body corporate’s governance structure, while the owners in general meeting are the policy-making body, the “legislature”.

Trustees supervise or undertake the day-to-day management of the scheme, but their power to do so is always subject to reservations and directions given by the general meeting. This means that the “members in general meeting” is the ultimate internal authority because it can prescribe to and restrict the powers of the trustees. If no restriction or direction is given, the trustees can freely perform all the functions and exercise all the powers of the body corporate.

Hope this clarifies some of the terminology.  If you still have any questions about Sectional Living, please don’t hesitate to call us on  011 886-3161  send an email to info@mpm.co.za  or check out the information on our website  www.mpm.co.za