The Duty of the Body Corporate to Make Adequate Financial Provision for the Proper Maintenance of the Common Property of a Sectional Titles Scheme: Lessons to Be Learnt from the Provisions of the Strata Legislation of New South Wales and New Zealand

Abstract

The purpose of this contribution is to examine the three significant changes pertinent to financing the maintenance function of the body corporate which were introduced by the new South African sectional titles legislation. The three changes are: (1) stricter control of the contributions to the administrative fund to cover the operational expenses of the scheme for a particular year; (2) the compulsory establishment of a reserve fund (sinking fund, capital works fund); and (3) the introduction of the 10-year maintenance, repair and replacement plan.

Keywords: sectional titles, body corporate, common property, maintenance of common property