The calculation of levies is done by using the formula of the participation quota of each unit in a sectional title scheme, in order to determine their contribution towards the repair, upkeep, management, control and administration of the common property.
In the Sectional Titles Act, the entrusted functions of a body corporate include the establishment of funds to cover administrative expenses, the payment of rates and other local municipal charges, as well as raise the levy contribution on the owners in proportion to the participation quota of their section.
According to the Sectional Titles Act, a participation quota is a formula used to determine the percentage that an owner should contribute towards the collection of levies.
The participation quota of a section is expressed by four decimal places which can be arrived at by dividing the floor area to the nearest square metre, as determined by the developer.
Levies can be calculated using the following formula:
Total square meters of a sectional title scheme ÷ Total square meters of each unit = Participation Quota.
e.g. 1162 m2 ÷ 95 m2 = 8.1756
Total budgeted amount x participation quota of the unit = Amount
e.g. R 221 088.00 x 8.1756 = R 180 7527.05
( R180 7527.05 x 100.0000) ÷ 12 = R 1506.27
Rounded off to a total of R 1506.00
If you have any queries relating to the calculation of levies, or if you want a clarified understanding of the participation quota, contact the experts at Van Deventer and Van Deventer Incorporated.
Subscribe to our Newsletter
Book a Free Consultation
Bond & Transfer Calculator
Estate Agent Training
Although cutting your tenant’s electricity or changing their locks may seem like a good idea at the time, it is in fact a bad idea and automatically puts you, as a landlord, in the wrong.
Read More ...Posted by Cor van Deventer on Friday, May 22, 2020 Views: 14
It should not be the choice of either the public health or the state of the economy. It is a necessity to safeguard both. Fabricius J
It is imperative that preservation of the economy is of major importance in South Africa's COVID-19 strategy.
Read More ...Posted by Cor van Deventer on Wednesday, May 20, 2020 Views: 703