Do we or don’t we …is a question many sectional title schemes ask themselves when it comes to appointing an Executive Managing Agent (EMA).
Brought about with the changes in legislation that came with the ‘new’ Sectional Title Schemes Management Act (no8 of 2016), an EMA is ‘an external individual / company employed by a Community Scheme who performs the functions and exercises the powers that would ordinarily be performed by Trustees.’ Essentially, the EMA ‘steps into the shoes’ of the conventional Trustees and is responsible for the day to day decisions that the Trustees would normally make. It’s important to note that there will no longer be any Trustees if an EMA is appointed.
For most people, the purchase of a home, is the single largest investment they will make in their lifetime and even for a small scheme, the asset value is extensive. Many schemes are either badly managed or, because it’s often a thankless task, especially when there is apathy and non-participation from the members and the full brunt of the task,falls on a few, it’s a constant battle to get members to stand as Trustees.
The truth is, as a homeowner you cannot afford NOT to be involved. It’s like a company being run by a board elected on popularity with nobody in charge. Every sectional title scheme is a business and should be run responsibly and with due diligence. This is where appointing an EMA, would make a lot of sense.
ZDFin is a specialist finance company providing smart solutions for Sectional Title Bodies Corporate, Home Owners’ Associations and Share Block companies. This year alone, ZDFIN has signed up five new schemes and as a result, not only saved them money in the short-term, but has put in place plans to keep the schemes on top of their maintenance commitments and budgets, to ensure that they can better take care of their commitments in the medium-long term.
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Joanne Hayes, Tumbleweed Communications
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