Trustee Duties: What to do, what to avoid, and why it matters

• Trustees must govern finances, rules and maintenance transparently, lawfully and in the collective interests of all owners.
• Poor governance, bias or inaction exposes schemes to disputes, financial risk and declining property values.
• Professional management support is essential as sectional title legislation and compliance grow more complex.

The role of trustees in Sectional Title Schemes

Sectional title (ST) living is now a dominant feature of South Africa’s residential landscape, with almost 60,000 schemes housing hundreds of thousands of owners and tenants nationwide. These communities rely on trustees to protect their financial health, physical condition and legal compliance.

Appointed by the body corporate, trustees are entrusted with the day-to-day governance of the scheme in terms of the Sectional Titles Schemes Management Act (STSMA), its regulations and the rules of the scheme. They are not merely volunteers helping out, they are fiduciaries, legally bound to act in the best interests of all owners.

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As Andrew Schaefer, Managing Director of Trafalgar, explains: “Trustees have a fiduciary duty, which means they must always act honestly, transparently and in the collective interests of owners. While most are untrained volunteers, the responsibility they carry is significant and the legal framework is clear about what they may and may not do.”

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What trustees should be doing

Effective trusteeship is built on disciplined governance and consistent communication.

Key responsibilities include:

1. Managing finances responsibly
Approving budgets, monitoring expenditure, ensuring accurate records, and collecting levies timeously in line with the STSMA.

2. Maintaining the common property
Planning preventative maintenance, appointing qualified contractors, ensuring safety compliance and protecting long-term asset value.

3. Enforcing rules fairly and lawfully
Ensuring conduct rules are properly approved, registered with CSOS, and applied consistently to all residents.

4. Ensuring legislative compliance
Adhering to the STSMA, Prescribed Management Rules, CSOS Act and relevant municipal bylaws in every decision.

5. Communicating transparently
Keeping owners informed through AGMs, trustee reports, minutes, circulars and prompt responses to queries.

6. Using professional expertise
Engaging managing agents, auditors, engineers and legal advisors where specialist skills are required.

As Schaefer notes, “Professional managing agents play a critical role in helping trustees meet their obligations and protect property values.”

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What trustees should not be doing

‍Just as important as knowing what to do is understanding what must never be done:

1. Acting unilaterally
Major decisions require collective trustee resolutions and, in some cases, special or unanimous owner approval.

2. Bypassing financial controls
Unauthorised spending, poor record-keeping or failure to act on levy arrears breaches fiduciary duty.

3. Showing bias or favouritism
Preferential treatment of certain owners or tenants undermines governance and invites disputes.

4. Neglecting maintenance
Deferred repairs increase liability risk and accelerate the deterioration of asset value.

5. Using the role for personal gain
Conflicts of interest must be declared, and affected trustees must recuse themselves from decisions.

6. Failing on governance processes
Missing minutes, undocumented quotes and unsigned resolutions can invalidate decisions and violate prescribed rules.

The Way Forward

Strong sectional title communities are built on sound governance, financial discipline and transparent leadership. Trustees sit at the centre of this ecosystem. Their actions or inaction directly influence property values, resident harmony and legal risk.

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As Schaefer concludes: “Successful schemes depend on informed trustees who understand both their powers and their limits. Increasingly, professional managing agents with the right systems, legal knowledge and governance structures are essential partners in ensuring compliance, stability and long-term sustainability.”

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In a regulatory environment that is only becoming more complex, the message is clear: Good trusteeship is no longer optional, it is the foundation of resilient, well-run sectional title communities.

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