Written By Nawaz Peerbux
The general term “syndicate” refers to a group of entities, being individuals, companies or corporates who share the same interest in protecting or enhancing their business. Any building with multiple apartments or units requires a Syndicate and in this case, the members of this non-profit organisation collaborate to maintain the upkeep and ensure that all aspects of the building are addressed.
How Is The Syndicate Formed?
The syndicate is commonly created prior to the completion of the development, whereby the promoter tends to appointed as the “President of the Syndicate’ and as the units are sold, the new owners become members.
Once there are sufficient members and AGM (annual general meeting) is held to discuss how to proceed with operating the syndicate and these decisions are voted with the “majority rule” principle implemented. The promoter does not have to be included in any further operations if they are not an owner and can be discharged of all their responsibilities.
A separate bank account for the Syndicate is opened which itemises all sums and values received on behalf of the building, as well as all those paid out of it. The authorising signature of this account initially tends to be the Promoter, purely as their name is on the legal documents, but this again can be changed at the discretion of the members in the AGM.
What Is The Role Of The Syndicate?
The fundamental purpose and objective of the Syndicate is to ensure the communal grounds and amenities of the complex are maintained.
- The Syndicate must keep all necessary records of the building, including the addresses and voting rights of owners, changes of ownership of apartments within the building, insurance and service contracts, and payments authorised and made
- The syndicate is obliged to maintain accurate and up-to-date accounting information showing all expenditure, income and arrears.
- The Syndicate needs to keep insurance records. These are both for claims and payments under the building defects liability insurance such as a leaking roof, cracking terrace or rotten drains
- An AGM is mandatory whereby, a copy of the accounts are provided prior to the meeting, along with an agenda and a budget for the coming year. It is imperative to acknowledge that any item not mentioned on the Agenda has no legal standing. Members are all invited to add any items to the agenda prior tot he AGM being held.
Whats Does The Syndicate Fee Cover?
Communal areas and amenities are covered by the Syndicate. In most cases, the following applies:
- Pool Maintenance
- Gardening and maintenance of the grounds
- Cleaning of communal areas e.g. corridors, staircases, outdoor facilities.
- Electricity charged for communal areas e.g. car park lighting, interior lighting for common spaces, swimming pool pump, water pump and lift.
- The water bill for the entire complex
- Lift maintenance contract.
- Building insurance
- Any remedial works required to common areas e.g electric gate.
- Decorating exterior and common areas.
How much Is the Syndicate Fees?