The Role of Managing Agents in Ensuring Compliance with the STSMA and CSOS Act

Managing agents play a pivotal role in helping sectional title schemes comply with the requirements of the Sectional Titles Schemes Management Act (STSMA) and the Community Schemes Ombud Service (CSOS) Act. Their expertise and professional oversight ensure that schemes meet their legal obligations while maintaining smooth operations. This article explores the key functions managing agents perform to ensure compliance.

1. Administration and Record-Keeping

Managing agents are responsible for maintaining accurate and up-to-date records as required by the STSMA. This includes:

• Keeping minutes of trustee and general meetings.

• Maintaining financial statements, budgets, and levy schedules.

• Ensuring the registration of rules with the Registrar of Deeds.

Accurate record-keeping is essential for transparency and compliance with both the STSMA and CSOS Act.

2. Facilitating Financial Compliance

The STSMA mandates that schemes operate with financial discipline. Managing agents assist by:

• Preparing annual budgets and levy schedules.

• Collecting levies and managing arrears effectively.

• Facilitating audits and ensuring compliance with tax obligations.

Their expertise ensures the financial health of the scheme and minimizes the risk of non-compliance.

3. Ensuring Rule Compliance

Managing agents support trustees in drafting, registering, and enforcing conduct and management rules. They:

• Advise on the legality of proposed rules.

• Communicate rules to residents and address queries.

• Assist with enforcement processes, including issuing warnings and managing dispute resolutions through CSOS if necessary.

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4. Guiding Trustees on Legal Responsibilities

Trustees often rely on managing agents for guidance on their duties and obligations under the STSMA and CSOS Act. Managing agents:

• Provide training or workshops for trustees.

• Ensure trustees act within their mandate and avoid liability.

• Keep trustees informed of changes in legislation or regulations.

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5. Maintenance and Compliance with Maintenance Plans

The STSMA requires schemes to adopt a 10-year maintenance plan. Managing agents play a key role by:

• Coordinating the preparation and regular updates of the plan.

• Overseeing maintenance activities and ensuring proper execution.

• Monitoring the reserve fund to ensure adequate funding for planned maintenance.

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6. Dispute Resolution Support

Disputes between residents, or between residents and the body corporate, can disrupt scheme operations. Managing agents:

• Mediate conflicts to achieve amicable resolutions.

• Guide parties through the CSOS dispute resolution process when necessary.

• Maintain records of disputes and resolutions for future reference.

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7. Facilitating Compliance with CSOS Requirements

The CSOS Act mandates that schemes:

• File annual returns.

• Pay annual contributions to CSOS.

• Submit updated governance documentation, including management and conduct rules.

Managing agents handle these administrative requirements, ensuring schemes avoid penalties for non-compliance.

Conclusion

Managing agents are indispensable partners in ensuring that sectional title schemes comply with the STSMA and CSOS Act. Their professional expertise reduces the administrative burden on trustees, promotes legal compliance, and fosters harmonious community living. By engaging a competent managing agent, schemes can focus on creating a thriving and well-managed environment for all residents.