As previously mentioned, the Prescribed Minimum Rule (PMR) 22 requires that schemes MUST have a written maintenance, repair and replacement plan for the common property. In Part 3 we discuss the presentation of the plan.
The plan takes effect on its approval by members of the body corporate at an Annual General meeting (AGM) or a Special General Meeting (SGM). In the event that there is no plan, for whatever reason, one must be drawn up as soon as is possible and be presented at a SGM.
At the same meeting where the plan is discussed, conditions for payment of the plan from the reserve fund should be considered.
Once the 10 year maintenance plan has been approved and accepted, the document must be lodged at CSOS.
IMPORTANT NOTE: The compulsory reserve fund is inextricably linked to the 10 year maintenance plan. The body corporate funds the plan from the reserve fund, which may require the raising of a special levy.
In Part 5 of this newsletter we will look at the annual review of the Maintenance Plan.
Article courtesy of Marina Constas and Karen Bleijs Demystifying Sectional Title