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Sectional Title & Community Schemes
Article 06 of 74

A healthy reserve fund matters.

Roofs, painting, paving, lifts, plumbing, electrical systems and other major common-property items eventually require repair or replacement. Reserve funding is intended to prepare the scheme for those costs.

Insights›Sectional Title & Community Schemes
PROPERTY INSIGHT 06 A healthy reserve fund matters.
Scheme-specific reminder

Community-scheme rules can differ. Always check the current rules, approvals and documents for the specific complex or scheme.

What to know

  • Bodies corporate must prepare a written 10-year maintenance, repair and replacement plan for major capital items.
  • The plan should address current condition, expected timing, estimated cost and expected life after work is done.
  • The reserve fund is separate from normal annual operating expenditure.
  • A buyer should compare the plan with the cash already available and upcoming projects.
Important Information

The information in Fabulous Homes Insights is provided for general property education and information. Property, tax, finance, sectional-title, rental, municipal and compliance matters can differ according to individual circumstances, contractual terms, scheme rules, municipal requirements and changes in law. Where necessary, readers should obtain advice from an appropriate attorney, conveyancer, tax practitioner, financial professional, property practitioner, engineer, inspector or other suitably qualified professional.

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