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Careful investigation of the body corporate is not enough, and sectional title unit owners need to be responsible, comments a reader.
With regards to your article "Sectional Title ownership much debated" (17 May 2006), I would like to respond as follows:
I feel that your comments were a little harsh towards trustees, and obviously written from the view point of a property dweller, and not a sectional title owner.
Could I possibly make a couple of points with regards to this article from my own experience.
As Chairman of the complex that I live in, we are faced with much the same issues, from another point of view.
Yes I agree about the inexperience on trustee's, as the only person willing to step forward at the time of the AGM, and take on this responsibility, and having to learn how to run a complex, with no experience, just re-enforces your comment, but as no one is willing to become involved, it is generally left to a willing few very inexperienced owners, which are treated with contempt and abuse, and which has become a very thankless job.
So thanks to those willing yet inexperienced owners who are willing to take up the challenge of this position.
From my own point of view, how do you get experienced trustees, and chairman's, when there is nowhere to turn, well certainly nowhere that I could find, at a stage, I found a book, on the rules and guidelines on sectional title, which was a great help, further then that I have found no where else I can turn to for advice etc, most attorneys are unable to help with minor query's and with a fee in excess of R500.00 per session, this was not beneficial to the complex. We used to get a newsletter for about 6 months called the body corporate, which had some great advice, but that stopped as quickly as it began.
On the point of mismanagement of funds, I totally agree, however the trustee's should be accountable to the managing agents and vice versa, as this is where misappropriation of funds can easily occur, and if left unchecked these people can be earning an extra income thanks to the lax attitudes of owners.
I point to the fact that when I took over as chairman, we were having our lights and water cut, due to non payment, this was a knock-on effect of allowing unpaid levy's to go unchecked for far to long, as well as not budgeting properly for levy rates increase etc.
Today we find ourselves in a different situation, where 90% of the owners of the complex, have bought for investment purposes, we now have almost all tenants that stay in our complex. You would think that as an owner of a property that you would be only too willing to check up on it, and it would be your duty to ensure that you keep abreast of your investment, but sadly apathy and it seems a general disinterest has taken over this market. As your article alludes to the fact that careful investigation must take place as to the liquidity and management of the complex in which you are about to invest, your article seems to indicate that this is all that investors need do, with which I totally disagree!
In the past two years I have seen more and more owners of sectional title flats buy for investment purposes, never to hear or see from them again, until either the tenant's have an issue, or moves.
These investment owners are the reason why complex's are been over run by mismanagement and unchecked tenants.
Again when it comes to AGM meetings the number of owners who attend are dismal. If you don't have an interest in your investment, don't expect your investment to keep running by it's self.
I can foresee in the near future as I to look to move to a free-standing dwelling, who will be my replacement, are owners willing to have their investments managed by tenants? The same comparison could be made to business, an unchecked business, left to run by the employees, will eventually be run into bankruptcy, so where will your investment be then.
My point is two fold, investors need to take as much care of their investments as they do the initial investigation, and secondly, thanks to the willing few who are willing to take up the challenge and manage these complex's cause at the end of the day, it is the trustee's, that see to the day to day running of a complex, and not managing agents, who are only too willing to get their monthly fee, but are they really interested in the day to day running of the complex?
Andre Nel |
