How does the participation quota (PQ) factor into the calculation of a scheme’s levies? The participation quota (PQ) of each unit in a sectional title scheme is based on the floor area of the section as specified on the sectional plan. The PQ determines the proportionate share of ownership interest that each unit has in […]
What are body corporate levies and why are they important? In sectional title ownership, a body corporate is responsible for the management and maintenance of the common areas and facilities within a development or complex. Alongside the body corporate’s obligation to establish a thorough 10-year maintenance plan, each individual owner of a sectional title unit […]
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 […]
Bodies corporate are responsible for managing and maintaining the common property of their sectional title scheme. This includes preparing a 10-year maintenance, repair and replacement plan to ensure that the property remains in good condition and to identify potential issues before they become costly problems. In order to fund this plan, along with the reserve […]
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