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SHARE BLOCK, SECTIONAL TITLE, AND TIME-SHARING ADMINISTRATION
By arlene | June 21, 2008
In a share block scheme, each shareholder controls an individual unit by virtue of the fact that he has shares in the company which owns the entire property. In a sectional title scheme, each owner has a registered title to a section and owns an undivided share in the common property of the scheme. In a time-sharing scheme, every unit is divided into time periods, which are either controlled or owned by participants in the scheme.
All three forms of property tenure involve multiple owners who are organized into controlling bodies for the entire property. In all three cases, a managing agent is usually appointed to administer the scheme.
The administration of these schemes is similar to that for conventional rental properties. For example, instead of rental, participants contribute towards operating and administrative expenses by way of levies which are usually paid monthly. Rules of conduct for these schemes are similar to the restrictions on tenants in conventional leases. The managing agent is responsible for cleaning and maintaining the property, enforcing rules of conduct, collecting levies, and paying expenses in respect of municipal taxes, rubbish removal and water provision. In cases where units or time periods are leased out, the managing agent also administers these leases on behalf of the owners. The requirements of owners may differ substantially and the property manager must cater for every owner individually.
The administration of these schemes differs from that for conventional rental properties in two important respects.
Firstly, the managing agent does not deal with individual owners, but with the group of people responsible for controlling the scheme. In the case of a share block scheme, these are the shareholders or directors; in a sectional title scheme, the trustees or members of the body corporate; in a time-sharing scheme, the owners, management association, directors or trustees. This makes the task of the managing agent more complex. Much of his interaction with the owners takes place in meetings of the controlling body of the scheme, where his role is similar to that of a company secretary, his duties typically include
E drawing up an annual budget of income and expenditure;
- arranging venues for meetings;
- attending all meetings;
- keeping minutes of these meetings;
- assisting with procedural matters such as quorums, proxies, resolutions and voting rights; and
- drafting and dispatching notices and circulars.
Multiple ownership and the wider range of services rendered by the property manager make the administration of these schemes complex. The managing agent should be completely conversant with relevant Acts and regulations, and with meeting procedures and should be able to communicate with people as a group. As a result of the increased complexity, only experienced property managers will take on this type of management.
A second way in which the administration of these schemes differs from that for conventional rental properties is that units are often occupied by their owners: the owner is also the “tenant”. Individual owners typically expect a higher standard of service and requests from individuals for special treatment may become a problem.
Owner-occupiers ease your maintenance task considerably, since they take pride in the property. However, maintenance costs may often be underestimated in budgets, especially as the building grows older, and you may have difficulty in persuading the controlling body to establish a maintenance reserve to cater for nonannual items of expenditure such as roof repairs, or to do long-term planning.
Time-sharing schemes often have an additional dimension, since many are run along the lines of a resort. In managing these you require experience of hospitality management, as well as a suitable organization or reliable contractors. Timesharing schemes are unique.
Possibly related posts: (automatically generated)
SHARE BLOCK, SECTIONAL TITLE, AND TIME-SHARING ADMINISTRATION
- Buying a Flat / Apartment: sectional title or block share schemes?
- Sectional Title: The Pros and Cons part 1
- Sectional Title Re-sales
- The Completion of Mortgage Loan Application Forms
- Time-sharing Summarized
- Group Housing Schemes
- Sectional Title: The Pros and Cons part 3
- Housing Development Schemes for Retired Persons Part 3
- The Purpose of Standard Documents
- Sectional Title: The Pros and Cons part 2
Topics: Agent, Company, Form, Property, Rental | 7 Comments »
August 11th, 2008 at 12:37 am
The following persons or organizations are significant owners of the company; Shares Heldpercentage Ownership Professional Support… … Share Ownership
August 11th, 2008 at 2:00 am
A fractional or partial owner usually enjoys priorities and privileges, such as reduced rates, priority access on holidays and income sharing. … Fractional Ownership Company
September 2nd, 2008 at 6:26 am
Span style="e; 7.0pt ” Times New Roman”" Some of our vendors may work closely with us to ship your order directly to you for certain specialty items such as furniture, shoes and dinnerware. … Macy Department Stores
September 20th, 2008 at 12:44 am
We do not share equipment or databases with these companies and will not share your credit card information with them without your express permission. … Hertz Car Rental
September 22nd, 2008 at 6:53 pm
We ask you for personal information, such as your contact information including your name, email address and phone number; and your financial information such as your credit card number and security code. … International Phone Cards
September 23rd, 2008 at 11:43 pm
This has narrowed the gap between London and the rest of the country, where the proportion of letting agents saying there are more properties than tenants has increased slightly. … London Lettings
August 30th, 2009 at 5:40 am
Are property management administrators legally required to be members of a fidelity fund (as with estate agents) when they control rental collections and manage other monies on behalf of the shareblock or sectional title scheme?