When a new sectional title development is opened, the developer is bound by certain management and conduct rules as prescribed by regulations to the Sectional Titles Act, 95 of 1986. It is possible for a developer, subject to certain restrictions, to substitute these rules. This is done when the application for the opening of the sectional title register is lodged. These rules inter alia deal with control, management, administration, use and enjoyment of the sections and common property, the election and remuneration of trustees, voting, improvements and owner meetings. 

A body corporate is established  on the date on which any person other than the developer becomes the owner of a unit in the scheme. The effect of this is that the first members of the newly established body corporate will be the developer and the owner(s) of a unit. The developer will remain a member of the body corporate for as long as he is the owner of at least one unit in the scheme and any other member’s membership will terminate automatically when he ceases to be the owner of a unit.

The body corporate, once established, is a legal persona and capable of suing and being sued in its own name. It can enter into contracts with third parties and act in any other matter for which a body corporate is responsible. It is however specifically excluded from the provisions of the Companies Act.

The body corporate has as its main object the control and management of the scheme, which it does through the rules referred to above. The said rules can be amended by the body corporate provided at least 30% of the units are owned by people other than the developer. Such amend normally takes place at a special general meeting with at least 

30 days written notice to members and the addition, amendment or repeal of a rule is effected by a unanimous resolution (for management rules) or a special resolution (for conduct rules.) Any amendments to the rules must thereafter be be filed at the Deeds Office.

The body corporate has the following specific functions in terms of the Sectional Titles Act:
1. To establish a fund for its expenses and in particular for the upkeep, repair, control, management and administration of the common property;
2. Payment of rates & taxes and supply of services;
3. To insure the building(s) at replacement value;
4. to raise money by collecting levies from owners in proportion to their participation quotas;
5. to maintain the common property;
6. to appoint agents and employees as needed;
7. purchase, acquire, mortgage, sell, hire or let units;
8. establish & maintain gardens and lawns as well as recreational facilities;
9. to borrow monies & repay loans made by it;
10. to make investments on its behalf;
11. to enforce the rules;
12. to enter into agreements with the local authority regarding supply of services.