In October 2016, the Sectional Titles Schemes Management Act was promulgated.

This provided for, inter alia, the implementation of a Maintenance Repair and Replacement Plan (MRRP) and the creation of a Reserve Fund, to fund the projected expenses in the plan.

To do this, the scheme requires a plan which includes, inter alia, the following:

the major capital items expected to require maintenance, repair, and replacement within the next 10 years;
the present condition or state of repair of those items;
the time when those items or components of those items will need to be maintained, repaired, or replaced;
the estimated cost of the maintenance, repair and replacement of those items or components;
the expected life of those items or components once maintained, repaired, or replaced; and
any other information the body corporate considers relevant.

To this end, we advocate the use of a professional company that specialises in the drafting of Building Condition Reports and aligned maintenance plans.

We interviewed several such companies and reviewed the reports issued, pricing models and turn-around times, and settled on one company, which we refer all of our sectional title clients to.

This has worked well, and it assists the trustees in all capital or major maintenance and related budgeting areas.

The MRRP and aligned budget, once drafted, are then circulated to all owners for adoption at the next annual general meeting.

Thereafter, the trustees are in a position to resolve the requisite levies, and undertake the proposed maintenance and or replacement of common property plant, equipment, and facilities.

Although the aforementioned Act was promulgated in 2016, Intersect had applied a similar methodology for years prior, which resultied in minimal impact on most of our clients when the time came to implement the provisions of the Act.