Page 26 - Robin Twaddle PTG 2017 Digital

The body corporate is responsible for the enforcement of the Rules of the scheme, the
control, administration and management of the common property for the benefit of all
Owners. Section 3 of the STSMA sets out the functions of the body corporate. Some of the
more important (and newly added) functions are:

Section 3(1)(a): To establish and maintain an Administration Fund
An Administrative Fund must be used to fund the operating expenses of the body corporate
for a particular financial year. These estimated annual operating costs would, inter alia,
include the repair, maintenance, management and administration of the common property
(including reasonable provision for future maintenance and repairs), the payment of rates
and taxes and other local municipality charges.

Section 3(1)(b): To establish and maintain a Reserve Fund
Every development and its Trustees are required to establish and maintain a Reserve Fund,
in such amounts as are reasonably sufficient to cover the cost of future maintenance and
repair of common property, but not less than such amounts as may be prescribed by the
Minister. The Trustees need to include contributions to this fund when preparing the ensuing
financial year’s budget, and the minimum amount must be determined according to a
prescribed formula (set out in Regulation 2).

Section 3(1) (c) to (f): Require owners to contribute
The body corporate must require the owners wherever necessary to make contributions to
the Administration and Reserve Funds, and to raise these amounts by levying contributions
on the owners in proportion to the quotas of their respective sections.

Section 3(1) (h): Insure buildings
The body corporate must insure the building or buildings and keep it or them insured to the
replacement value thereof against fire and such other risks as may be prescribed.

The body corporate must obtain a replacement valuation of all buildings and improvements
that it must insure at least every three years and present such replacement valuation to the
annual general meeting.

Section 3(1) (o): Notify Chief Ombud of service address
The Chief Ombud, local municipality, and local registrar of deeds need to have the domicile
of the community scheme registered, so that in events of cases being brought against
bodies corporate by owners or vice versa, there is one address by which to serve notices.
This is also to simplify matters as all three bodies will have the same address registered.

TEN-YEAR REPAIR, REPLACEMENT AND MAINTENANCE PLAN

A body corporate or the Trustees are required to prepare a written, ten-year repair,
replacement and maintenance plan for the common property, setting out a number of items

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