So says Andrew Schaefer, the managing director of leading national property management company Trafalgar, who notes that it has become quite common in recent years for big suburban homes to be renovated and sectionalised into “duets”, and for large stands to be developed into “boutique” ST complexes containing a few free-standing homes.
“These are excellent in terms of city densification policies and efficient land usage, and they suit many modern buyers who want convenience, security and affordability rather than large gardens. The problem is that the majority of these developments are being run on a handshake basis, rather than according to ST legislation and the Community Schemes Ombud Service (CSOS) Act.”
He says that although they are legally members of a body corporate (even if there are only two of them), the owners in these schemes usually don’t formulate budgets, collect levies, hold AGMs or establish reserve funds.
“They might agree informally to share certain costs like security and garden maintenance, but mostly they treat their homes as if they were freehold properties.