Q&A | EstateIQ - Sectional Title Questions Answered

Questions & Answers

Find answers to common sectional title questions answered by our AI Assistants. Search by keyword or filter by topic.

Can owners remove interior walls without trustee approval?

Understanding the implications of removing interior walls and the legal requirements for structural alterations within sectional title units.

Alterations & Renovations Compliance

Do unauthorised EUA balcony extensions affect participation quotas?

Learn about the legal implications of extending exclusive use area balconies over common property and their effect on participation quotas.

Alterations & Renovations Compliance

How do you enclose common property for a body corporate storeroom?

Learn the step-by-step process for enclosing common property including trustee notice requirements and owner approval procedures.

Alterations & Renovations Governance

How serious are body corporate audit findings for non-compliance?

Understanding the severity of audit findings including non-holding of AGM, lack of building valuation, and financial record issues.

Compliance Financial Governance

What are the retention periods for body corporate records?

Understanding the 6-year minimum retention period for financial records under Management Rule 26(3) and best practices for other documents.

Compliance Governance Trustees

Can a body corporate cancel its insurance and get individual policies?

Learn whether a body corporate can cancel its building insurance policy and allow individual owners to take out private insurance instead.

Insurance Compliance

Can trustees change the body corporate's insurance?

Learn whether trustees can change insurance providers or if this decision must be made by owners at an annual general meeting.

Insurance Governance Trustees

Can trustees use reserve funds to pay municipal bills?

Learn whether trustees can authorise the use of reserve funds to pay municipal bills during cash flow shortages.

Financial Governance Trustees

How are levies determined in sectional title schemes?

Learn how levies are calculated using participation quotas and discover alternative methods through special resolutions under STSMA Section 3 and 11.

Financial Governance

What is the legislation around levy increases?

Comprehensive guide to levy increases including ordinary levies, special contributions, the 10% temporary increase rule, and reserve fund requirements.

Financial Governance Trustees

Can a managing agent charge percentage-based debt collection fees?

Learn whether percentage-based receipting fees charged by managing agents are legally compliant and what the legislation says about fair and equal treatment of owners.

Financial Governance Compliance

What recourse is available if trustees misuse reserve funds?

Learn about owner remedies when trustees misuse reserve funds for operating expenses and refuse to provide accountability.

Financial Governance Compliance Trustees Owners' Rights

How do proxy limits work for company and trust ownership?

Learn how the two-proxy limit applies when companies and trusts appoint representatives to attend general meetings.

Governance

What is a proxy and who may hold one?

Learn about proxy voting in sectional title schemes including Form C requirements, the two-proxy limit, and who can be appointed as a proxy.

Governance

Can owners terminate a managing agent contract early?

Learn whether a body corporate can terminate a fixed-term managing agent contract before the agreed term expires.

Governance

Can participation quota be enforced without an active body corporate?

Learn about participation quota enforcement and repair liability in schemes without active body corporate structures.

Governance Financial

How does a round-robin vote work?

Learn how round-robin voting works in sectional title schemes, including the legal basis, process, and minimum timeframes for written resolutions under the STSMA.

Governance Compliance

Explain the difference between ordinary, special and unanimous resolutions

Understand the differences between ordinary, special and unanimous resolutions in sectional title schemes, including voting requirements and when each type is used.

Governance Compliance

Who is responsible for repairing a garage door?

Learn who is responsible for garage door repairs based on whether it's part of a section, exclusive use area, or common property.

Maintenance

What is an undivided share and why do owners have rights to access common property?

Understanding undivided share in sectional title and the legal basis for owner rights to access and utilise common property.

Governance Compliance Owners' Rights

What documents do owners have rights to access and in what time frame?

Learn about your legal rights to access body corporate documents including the mandatory 5-10 day compliance time frames under Management Rule 27.

Governance Compliance Owners' Rights

What are the functions and duties of a trustee?

Understanding the defined and regulated role of trustees under the STSMA and their fiduciary duties to the body corporate.

Governance Trustees

What is a conflict of interest for trustees in sectional title schemes?

Understanding conflict of interest requirements including disclosure, recusal obligations, and member approval under STSMA Section 8 and Management Rule 6(3).

Governance Compliance Trustees

What is the correct process to remove an elected trustee?

Learn the formal process for removing an elected trustee including notice requirements, ordinary resolution procedures, and filling trustee vacancies.

Governance Trustees Compliance

Can the trustees make exceptions or amend the code of conduct without owner approval?

Learn why trustees cannot amend or make exceptions to conduct rules without special resolution and Chief Ombud approval under STSMA Section 10(2)(b).

Governance Compliance Trustees
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