Challenge of change in Sectional Title /HOA industry?
This is also the topic of our workshop that we conduct for
managing agents and trustees.
We don’t adopt easy to new changes do we?
Let’s look back over the years and just have a look at
technology…Would you have thought in the early 80’s that you will one day be
able to speak to someone without been connected to some sort of wire and that
all people no matter how poor or rich you are will be able to enjoy this
benefit?
Some of us still try to keep up with the latest trends in
technology.
The way people conduct business has changed and as most of
the specialists advice that you have to adapt or otherwise someday you will be
without a business.
What has changed in the sectional title /HOA industry?
Here is a couple of things that has changed but not limited
to.
Legislation –
with the new acts coming into play there are certain things that you as body
corporate need to comply with. CCOS is one example of these compliance points
that needs to be checked
Weather Patterns –
The weather and storms we experience lately were never experienced before. What
are we going to do to assist us in eliminating the risk?
Insurance requirements
– Insurers are looking at ways and means on putting stricter requirements in
place due to loss ratios
Liability – we are
in a very legislative environment and the understanding of what am I liable or
responsible for as trustees has changed.. do we know that?
This list can go endless but what are doing about it?
Let’s use an example .
One of the obligations of the
trustees is to make sure that the body corporate are correctly insured as this
section from “The Sectional Titles Act, 95 of 1986: Management Rule 29” clearly state the following:
Section 29. Insurance
29. (1) (a) At the first
meeting of the trustees or so soon thereafter as is possible, and annually
thereafter, the trustees shall take steps to insure the buildings, and all
improvements to the common property, to the full replacement value thereof,
subject to negotiation of such excess, premiums and insurance rates as in the
opinion of the trustees are most beneficial to the owners, against-”
Against what? Do you know what needs to be insured?
If you don’t insure the body corporate /HOA correctly
you are liable in your personal capacity as trustee /director …did you know
that?
So
what is the solution?
One of the solutions is to get
assistance from specialists that will provide you with the necessary information
that take an informed decision. There are help out there if you look for it!
That’s why we conduct workshops that
will assist trustees/ directors with the necessary information to make informed
decisions.
I will unpack some of these issues in
the months to come!
Please don’t miss my next article :
“Your broker should no longer just do the
policy but assist you in risk management!”
Please enquire about our workshops that
you can attend.
Sakkie Stoltz – Bestsure
Financial Services – FSP 13663 – 0839952075 - sakkie@bestsure.co.za
