This is an age-old issue in the field of property management regarding body corporate responsibilities. Several bodies corporate consider that by hiring a manager, they are essentially giving over control of their plan to the hired professional.
The obligation of the members of the body corporate
The members of the body corporate bear the first degree of accountability. They must select and designate suitable and capable trustees who will operate in the best interests of the plan and its members without bias or personal agendas.
Poorly chosen trustees have little awareness of sectional title laws and have no desire to make a constructive change in the scheme’s activities. As a result, trustee nominations must be carefully reviewed, and the body corporate’s choice of trustees should be treated seriously.
The obligation of the trustees
Trustees are chosen at the general meetings held annually with the exclusive purpose of overseeing the business of the body corporate. This involves budgeting, hiring contractors, managing employees, executing the scheme’s regulations, and maintaining the shared property.
They must follow the laws that regulate sectional title living as well as respect the scheme’s guidelines while performing their tasks. Furthermore, it is anticipated that they would operate in a just and equitable way, never seeming to be prejudiced towards one side.
Sadly, a few schemes are plagued by inept and indifferent trustees who ignore their obligations and obligations to the scheme’s harm and try to blame the managing agency.
Responsibilities of the managing agent
The managing agent is primarily hired to help the trustees in doing administrative duties including levy invoicing as well as an account payment. Their position is usually contractual, and the trustees or participants of the plan may cancel it at any moment.
A sectional title system has a ladder of duties and powers, as shown by the foregoing. The managing agent is at the apex, supported by the trustees, and finally the body corporate. Power is distributed from the highest to those under because one cannot operate without the other. The trustees have exclusive responsibility for the administration of a body corporate. The managing agent acts as a faithful aide, following the trustees along with their chairperson’s guidance.
The agent must advise trustees when making choices that may affect the scheme and its beneficiaries based on their technical know-how and comprehension of sectional title legislation.
Due to a lack of regulatory guidance, it is typically recommended that a formal agent contract be prepared, which includes the managing agent’s particular duties. This will allow the agent’s effectiveness to be monitored and the managing agent’s mission to be clearly understood by everybody.
It is also a good idea to have a managing agent join the National Association of Managing Agents (NAMA), an organization dedicated to improving the effectiveness of managing agents and binding members to a code of conduct and best practices.