What is a body corporate reserve fund? A body corporate’s reserve fund is a designated pool of money set aside by a collective ownership entity, to cover future expenses related to maintenance, repairs, and replacement of common property or shared assets. The reserve fund is typically funded by contributions from the individual owners in the […]
The reserve fund, admin fund and levies all play an important role in creating a successful and sustainable 10-year maintenance, repair and replacement plan for bodies corporate and homeowners’ associations. The admin fund is used for day-to-day expenses such as repairs and maintenance, while the reserve fund is set aside for major expenses that are […]
10-Year Maintenance, Repair and Replacement Plans for Sectional Title Schemes: What you need to know
A body corporate has the responsibility to plan for the maintenance, repair and replacement of their scheme’s major capital assets. According to the Sectional Titles Schemes Management (STSM) Act, all sectional title schemes are required to have a 10-year maintenance, repair and replacement plan (MRRP) in place. Below are the most frequently asked questions we […]
Sectional title ownership comes with the responsibility of maintaining and managing the common property within the scheme. This shared responsibility falls under the purview of the body corporate, an organization elected by the owners to oversee the shared property’s upkeep. This includes preparing a 10-year maintenance, repair and replacement plan to ensure that the property […]
The body corporate is responsible for insuring the common property and built sections to the replacement value thereof. But what about the upgrades that owners make to their individual properties? The body corporate is NOT responsible for insuring owner-installed unit upgrades, such as: Swimming pools Security features Awnings Carports Lapas Air-conditioning systems Luxury interior finishes […]