This article is part 3 of our sectional title series. In this installment we extend upon our previous explanations of the Body Corporate powers.

These are often confused with Trustees powers and often owners get confused about who has the right or the power to do what.

So, lets have a brief look at the powers of a Body Corporate.

1. The Body Corporate can appoint agents and employees as they see necessary to fulfill the functions and responsibility of the Body Corporate.
2. The law also says that, when it is necessary to fulfill the duties of a Body Corporate it can also buy, take transfer of mortgage bond, hire units or let out units. That is an interesting one that we saw happening in JHB CBD, in a case where the Body Corporate buys units because the owners can no longer pay levies and they become an absolute burden to the entire scheme. Of course, this has to follow correct process and procedure. Nonetheless one can see many units owned by Body Corporate.
3. The Body Corporate also has the power to establish (not only maintain) common property. This means that the Body Corporate, if suitable, can decide on suitable lawns or create recreational gardens for example.
4. It also has the power to invest money received.
5. The body corporate has the power to repay money that they borrowed, but also to take out, for example, a mortgage bond on any property vested in the Body Corporate. That's pretty much a lot of power.
6. The Body Corporate also has the power to enter into agreements with the local Authorities to supply electricity, gas, water or other services to the complex. In addition, it also has the power to enter into other agreements with local authorities, such as repayment of debt owed to the local authorities. This is often seen in areas under rehabilitation.
7. In respect to other owners, the Body Corporate has the power to enter into individual agreements. A good example is when the Body Corporate owns the parking lots or lockup garages and these are let to owners or to tenants. The Body Corporate also has the power to let out any area of the common property.
8. The Body Corporate must have some rules in a complex and according to those rules they also have the power to do all things reasonably necessary to enforce them.

Some owners, when they see all these powers, get a bit scared. But this shouldn’t be the case, as one must remember that the Body Corporate is, after all, the owners altogether. This is why we refer back to article one in the series where a property investors or home owners should think carefully if they wish to enter into living in a communal situation, where decisions are made by all and not one.

Before we move on to our next article, in which we will explore the responsibilities of owners individually, and other parties in a sectional title scheme, it is important to mention that all the powers that the Body Corporate has can be, and often are, delegated to the Trustees. This often creates big confusion where some believe that the Trustees are the “Boss”. This is not the case, and the Trustees can’t do anything they feel like or want to do, they are under the control of the Body Corporate at the end. But, we will discuss this in detail in an article about the Trustees.

See Also FAQ Body Corporate and When a Body Corporate is Formed .

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