Property glossary
Body corporate
Also known as: bodies corporate
The legal entity made up of all owners in a sectional title scheme, responsible for managing the common property and raising levies.
Definition
A body corporate is the juristic person automatically created when the first unit in a sectional title scheme is transferred to a new owner. It comprises all the owners of units (sections) in the scheme and is responsible for managing, maintaining and controlling the common property. The body corporate raises levies, enforces the rules, insures the buildings and is governed by trustees elected by the owners at the annual general meeting (AGM).
In the South African context
Under the Sectional Titles Schemes Management Act (STSMA, Act 8 of 2011) the body corporate comes into existence on transfer of the first unit and must perform the functions and exercise the powers set out in the Act. It must establish an administrative fund and a reserve fund, prepare an annual budget, and act through its trustees. The body corporate is also a community scheme for purposes of the CSOS Act and must register with CSOS.
Example
In a 30-unit complex, all 30 owners together form the body corporate; they elect, say, five trustees at the AGM to run day-to-day affairs and approve a R900 000 annual budget.
Why it matters
The body corporate is the contracting and accountable entity for a sectional title scheme — it holds the bank accounts, sues and is sued, and is the party that appoints a managing agent.
Informational only — not legal advice. Confirm specifics against the current Act and your scheme’s rules.
Sources
- STSMA — Sectional Titles Schemes Management Act 8 of 2011 — establishment, functions and powers of the body corporate