Understanding Your Current Managing Agent Agreement
Before taking any action, you must look closely at the legal status of your scheme's current contract. Under South African legislation, specifically the Sectional Titles Schemes Management Act (STSMA), the rules for changing an agent depend entirely on how long they have been appointed.
When the Contract Has Expired
By law, a managing agent's agreement cannot run for a period exceeding three years without renewal.
If the contract has passed the three-year mark without a formal, newly signed agreement, it rolls over on a month-to-month basis. The Process: Trustees can vote to cancel the agreement simply by giving the required notice period stated in the contract, typically one calendar month. No special owner vote is required for an expired contract.
When the Contract is Still Active
If the managing agent is operating under a valid, unexpired contract signed within the last three years, the process requires backing from the wider community.
*The Process: According to Prescribed Management Rule (PMR) 28(7) of the STSMA, the trustees can cancel the agreement without penalty if the Body Corporate approves the decision by a special resolution passed at a general meeting.
How an Individual Member Can Request a Change
If you are an individual owner and your trustees are turning a blind eye to poor management, you do not have to wait passively. While owners cannot fire a managing agent unilaterally, the STSMA gives you clear tools to drive the process.
Step 1: Build Your Case
Trustees rarely act on emotional complaints alone. Gather concrete evidence of poor performance, such as ignored maintenance tickets, delayed financial statements, or budgeting errors.
Step 2: Petition the Trustees (The 25% Rule)
Under community scheme governance rules, owners representing at least 25% of the participation quotas can sign a formal petition requesting that the trustees call a general meeting.
*The Action: Submit a written requisition to the trustees demanding a special general meeting (SGM).
*The Agenda: The explicit purpose must be to review the managing agent's performance, look at alternative quotes, and table a resolution to cancel the contract.
Step 3: Attend and Vote
Once the petition is correctly submitted, trustees are legally required to call the meeting. Campaign beforehand to secure proxy votes from your neighbors, present your findings clearly, and push for the necessary resolution to pass.
Ensuring a Smooth Handover to a New Provider
Once the decision to switch has been made, protecting your scheme's operational stability is paramount.
Vet Potential Replacements
Ensure any prospective agency is fully registered with the Property Practitioners Regulation Authority (PPRA) and holds a valid Fidelity Fund Certificate (FFC) to protect your scheme's levy funds.
Manage the Transition
A smooth handover ensures that financial records, debtor books, compliance certificates, and contractor files move seamlessly from the outgoing agent to the incoming one, preventing any disruption to daily operations.
Need help vetting a new managing agent or navigating a transition in your scheme? Contact our property management team today for expert guidance.
info@cpmanagement.co.za 021 853 8824