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Published:
May 16, 2010Posted in:
Managing AgentsTags:
Role of Managing Agents in sectional title schemes
It is not compulsory for the trustees to appoint a managing agent, and
many smaller schemes manage their affairs without the assistance of a
managing agent due to the competence and active participation of their
owners. In other schemes, especially medium to large-sized schemes, the
workload involved in managing the affairs of a body corporate as well as
the usual lack of compensation, encourages trustees to appoint a managing
agent to bear most of the workload.
In terms of
the prescribed management rules, the managing agent must be appointed by
written contract for an initial period of one year, with one month’s
written notice of termination to be given by either party thereafter. The
scope of the managing agent’s services will be specifically stipulated in
the contract of appointment. Generally however, managing agent is
appointed to control, manage and administer the common property and any
obligations the body corporate has to any public or local authority on
behalf of section owners. The functions delegated to the managing agent
usually include the responsibility and authority to collect levies.
As managing
agents are governed by the Estate Agency Affairs Act and are required to
be in possession of a valid Fidelity Fund Certificate (FFC) at all times
the body corporates who employ them are protected against theft of their
moneys, being collected or received body corporate levies, which are
generally held in trust accounts administered by these managing agents.
Unfortunately, this requirement is not well-policed and enforced in
reality, there are many managing agents practising without FFCs, placing
the moneys of body corporates at risk.
Managing
agents may be removed from office without notice if they have breached any
of the provisions in the contract or if found guilty of conduct that in
common law would justify the termination of a contract between employer
and employee. |
