[CPT-FGC] Re: Hi

  • From: Ilitirit Sama <ilitirit@xxxxxxxxx>
  • To: cpt-fgc@xxxxxxxxxxxxx
  • Date: Tue, 12 Nov 2013 15:46:46 +0200

What Stu said.  You just have to be reasonably sure that you're aren't
going to get screwed.  When it comes to financials many places will be
reluctant to give you detailed info because it can expose various owners'
financial situation.  After our AGM we get a statement containing a full
breakdown of where the money comes from and where it goes to, and what debt
(if any) exists.  Maybe they'll give you that info, but they won't give
more than they need to.  But when with a full breakdown, there are some
things you just won't know unless you study it thoroughly and ask the right
questions.

For example, I was under the impression the gym at my apartment was owned
by the body corporate and use thereof was covered by the levy.  Turns out
the space is actually owned by one of the apartment owners, and he lets
people use it as long as the BC maintains it.  Now, he's thinking it's
unfair that he's being asked to pay levies without receiving rental money
from the BC.  So now, our monthly levy goes up to cover the rental of the
gym (voted on during AGM).

Stuff like that is virtually unavoidable so I wouldn't really worry about
it.  As I said, just be reasonably sure you aren't going to get screwed.
Only time you really need to go through financials etc with a fine tooth
comb is if you're a big buyer.  Retailers in Sea Point are having big
problems at the moment because they conflated the meanings/roles of the
owners, BC and tenants.  Noob error.



On Tue, Nov 12, 2013 at 3:19 PM, euraima tobias <euraima@xxxxxxxxx> wrote:

> Can someone maybe advise me? How does the financial state of the body
> corporate of a complex affect you as a owner of one its units? Ie. Its
> solvency, its insurance etc. What happens to your sectional title in a case
> where they are declared insolvent?
>

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