What is a body corporate in property?
What is a body corporate in property?
Body Corporate. The body corporate is the collective name given to the owners of the units and common property within a sectional title scheme and this comes into being when the developer transfers the first unit to its new owner.
What does a body corporate consist of?
The body corporate consists of everyone who owns property within a sectional title block of flats or complex. As a property owner and body corporate member, you have a right to have a say in how things are run, and a responsibility to take an interest in what is happening with regards to the property.
What legal entity is a body corporate?
The body corporate is a separate legal entity of which each owner is a member. A body corporate comes into existence as soon as any person other than the developer becomes a registered owner of a unit. The body corporate elects trustees to carry out its obligations to manage and administer the scheme.
Does a sectional title have to have a body corporate?
There could be trouble ahead for the owners of duet homes and properties in small sectional title (ST) estates that do not have a functional body corporate and are not being run in terms of the Sectional Title Schemes Management Act (STSMA).
What is the difference between a body corporate and a homeowners association?
One of the key differences between a Homeowners Association (HOA) and a Sectional Title Body Corporate lies in the way ownership is defined. For example, you own your apartment, townhouse or unit exclusively but share ownership of common property areas such as gardens or a swimming pool with other owners.
Is a body corporate a legal person?
Separate Legal Identity Hence, members of a “body corporate” cannot be held liable for its act, as it is a separate legal entity having an identity of its own, distinct from that of its members.
Can a body corporate write off debt?
So a body corporate does not have the power to accept the owner’s offer, if the only reason is to settle the owner’s debt. Writing off any body corporate claim, prejudices all other owners in the scheme, as they must fund its expenses including any losses.
What is body corporate land?
Brief look at Body Corporate / Owners Corporation It is a term used to refer to the group of owners that collectively own the land on which their unit, apartment or townhouse is situated.
What does a body corporate mean?
A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.
Where does excess money go in a body corporate account?
This should be, according to Prescribed Management Rule (PMR) 21 (4), an interest-bearing account in the body corporate’s name or a trust account. “Sometimes, however, the owners in a scheme decide that excess money from funds should be invested instead – which can be done only if there is a written trustee resolution to this effect.
What are the accounting rules for body corporations?
For a body corporate that has not created a reserve fund, the budgeted contributions to this reserve fund for the 2017/18 year-end must be at least 15% of the budgeted contributions to their administrative fund. However, rule 21 (3) (b) limits the maximum increase on the annual contribution to 10% at the end of the financial year.
What is Rule 26 of the body corporate?
Rule 26 (1) (b) clearly states that the body corporate must keep separate books of account and bank accounts for its administrative and reserve funds.
Where do I deposit my body corporate money?
This is according to Mandi Hanekom, operations manager of sectional title finance company Propell, who says all money received by the body corporate must be deposited into an account with a registered commercial bank in the name of the body corporate.