Sectional Title Trustees SA — Duties under STSMA

Nathan

17 Jun 2026 — 6 min read

"Who runs the sectional title complex?" My name is Nathan Fumal, CEO of KILICASA, and in this article I cover trustee responsibilities under the Sectional Titles Schemes Management Act.

Introduction

Trustees are the backbone of any sectional title scheme — legally accountable, practically indispensable. This article explains what South African trustees must know under the Sectional Titles Schemes Management Act (STSMA), how AGMs, reserve funds and maintenance plans fit together, and practical steps for trustees, owners and investors.

What is the trustee role in a sectional title scheme?

Trustees are elected representatives of owners who manage the body corporate. Their authority comes from the Sectional Titles Act and detailed duties are set out in the Sectional Titles Schemes Management Act (STSMA). Trustees act on behalf of all owners to administer common property, collect levies, enforce rules, maintain insurance, and ensure statutory compliance.

Legal status and fiduciary duties

Trustees owe fiduciary duties to the body corporate. They must act honestly, in the best interests of all owners, avoid conflicts of interest, and exercise reasonable care and skill. Failure to do so can expose trustees to civil liability or administrative penalties. Good practice includes keeping written conflict-of-interest registers and declaring interests before votes.

Key statutory responsibilities under the STSMA

The STSMA introduced new governance and financial requirements for sectional title schemes. Trustees must translate these statutory obligations into governance practice:

Adopt and implement a maintenance plan and a reserve fund plan (sometimes called a sinking fund plan).
Prepare an annual budget and financial statements, and present them at the AGM.
Hold regular AGMs and special general meetings (SGMs) with proper notice, quorum and minutes.
Keep statutory registers (owners, mortgage bonds, exclusive use agreements).
Ensure compliance with safety and statutory certificates where necessary (e.g., lifts, pools, electrical installations).

Maintenance plan and reserve fund plan

One of the STSMA’s most important additions is the mandatory maintenance plan and reserve fund plan for all schemes. A maintenance plan documents expected maintenance work (short-, medium- and long-term), timing and estimated costs. The reserve fund plan sets out contributions needed to finance future capital expenditure and repairs.

Trustees must review these plans periodically (typically annually) and update levy calculations accordingly. For example, a mid-sized scheme with a roof lifecycle replacement in 10 years should budget for that cost over time rather than allowing a once-off special levy that can burden owners.

AGM duties and governance practicalities

AGMs are the forum for accountability. Trustees must:

Give statutory notice (check your scheme’s sectional titles rules for exact notice periods and delivery methods).
Provide owners with the agenda, budget, financial statements and proposed maintenance and reserve plans in advance.
Ensure quorum is reached; if not, reconvene as per the scheme rules.
Keep accurate minutes and circulate them within the timeframe required by your scheme rules or STSMA.

Good governance means publishing clear minutes and actions, tracking resolutions and following up on decisions (e.g., appointing contractors, updating insurance covers). Many disputes arise from poor record-keeping rather than substance.

Financial management: budgets, levies, and insurance

Sound financial management is a top trustee priority. Key elements include:

Preparing a realistic annual budget that funds operations and small repairs.
Calculating levy contributions in line with the reserve fund plan so long-term costs are smoothed across owners.
Collecting levies and enforcing arrears recovery processes professionally and lawfully (issue written demand notices, consider payment plans, and use registered letters before litigation).
Maintaining appropriate insurance (buildings, public liability, fidelity cover for officers). Fidelity insurance protects the body corporate against theft by employees or agents.

Example levy ranges: a basic 1-bedroom apartment in Cape Town might carry monthly levies of R 2,000–R 5,000 (~USD 100–260) depending on location and amenities; a luxury complex in Camps Bay or Sandton with pools and security can cost much more. Trustees should benchmark levies against similar complexes (use Lightstone, FNB reports or local estate agencies as references).

Maintenance and repairs: proactive vs reactive

Trustees must balance daily maintenance with long-term capital planning. A proactive maintenance plan reduces total lifecycle costs and avoids surprise special levies. Elements of a good maintenance plan include:

Inventory of all common property (roofs, façades, lifts, pumps, filtration systems).
Lifecycle estimates and inspection schedules (annual roof inspections, biannual pool checks, electrical testing every few years).
Priority categories (safety-critical, essential, cosmetic) and estimated costs.

Contract procurement should follow fair procurement practices: obtain multiple quotes, check references and confirm contractor licensing and tax compliance. Document all decisions and change orders.

Compliance, safety and legal exposure

Trustees must ensure the scheme complies with multiple layers of law: STSMA, the Sectional Titles Act, municipal by-laws (rates, building compliance), occupational health and safety, and privacy laws such as POPIA when handling owners’ personal records.

Safety duties include ensuring that common areas are safe, lifts are certified, swimming pools meet by-law standards, and parking areas are secure. When in doubt, trustees should seek professional legal or engineering advice — being cautious is cheaper than litigating after an accident.

Dealing with disputes and enforcement

Disputes in scheme life are inevitable: noise complaints, parking, renovations, unpaid levies, and rule breaches. Trustees must act impartially, follow dispute-resolution steps in the scheme rules, and maintain written records. If internal resolution fails, consider mediation or arbitration before litigation. The Community Schemes Ombud Service (CSOS) deals primarily with home owners associations, while sectional title disputes can also move through the courts or negotiated arbitration depending on the matter.

Trustee liability and protections

While trustees have duties, they also have protections when acting in good faith. Employers and bodies corporate typically purchase directors’ and officers’ (D&O) insurance and fidelity cover. Trustees should:

Act transparently and document decisions.
Obtain professional advice on complex or high-cost matters.
Ensure schemes have adequate insurance to indemnify trustees where appropriate.

Personal liability arises mainly when trustees act dishonestly, negligently, or outside their authority.

Practical tips for new trustees

Taking a trustee role requires organisation and an appetite for governance. New trustees should:

Read the STSMA and the scheme’s own management rules and conduct rules.
Request access to all financial records, previous minutes and the register of owners.
Insist on monthly financial reporting and a simple cashflow forecast.
Prioritise urgent safety and maintenance issues, then tackle long-term planning.
Engage owners with clear communications: newsletters, noticeboards, and online portals.

Actionable Tips and Key Strategies

Create a 10-year maintenance schedule and link it to a reserve fund plan; update yearly.
Establish online levy payments and arrears reporting to reduce administrative friction and improve collection rates.
Insist on at least three competitive quotes for capital projects and keep procurement records for audit trails.
Use standardised templates for minutes, resolutions and contractor agreements to reduce disputes.
Budget for a contingency (5–10% of operational costs) to absorb unexpected repairs without special levies.

Role of KILICASA

KILICASA helps trustees and bodies corporate streamline administration and improve transparency. Our portal simplifies owner communication, centralises documents (maintenance plans, minutes, financial statements), and helps match reliable service providers with trustees. For investors and owners, KILICASA provides market visibility and tools to check levy histories and scheme governance — reducing surprises during purchase or ownership.

Find practical tools and property listings at KILICASA and use our platform to access template governance documents and verified contractors.

Conclusion

Trustees hold a demanding but vital role in South African sectional title schemes. The STSMA emphasises planning — maintenance plans, reserve funds, and transparent financial governance — to protect owners and preserve property value. Trustees who act transparently, budget prudently and engage owners reduce disputes and costly surprises. For investors, checking a scheme’s maintenance plan, reserve fund position and trustee track record is essential due diligence.

KILICASA, because everyone deserves a place.

Frequently Asked Questions

1. Are trustees personally liable for scheme debts?

Generally, trustees are not personally liable if they act in good faith and within their authority. Personal liability can arise from dishonest or grossly negligent acts. Ensure schemes have adequate insurance and keep thorough records.

2. How often must a maintenance plan be reviewed?

Maintenance and reserve fund plans should be reviewed at least annually and updated after major inspections or capital works. Trustees should present any changes to owners at the AGM.

3. What can owners do if trustees fail to act?

Owners can call a special general meeting to remove or replace trustees, request mediation, or pursue legal remedies. Documented requests and a formal follow-up process strengthen the owner’s position.