Sectional Title Levy Collection

 

Sectional Title Levy Collection

In order to understand levy collection in a sectional title scheme, one first need to understand the function of the trustees in determining and raising levies and the expenses that levies relate to.

The functions of the trustees

Trustees are elected to represent the members of the body corporate, and one of their most important functions is to establish funds for the repair, upkeep, control, management and administration of the common property.

Trustees are also responsible for the payments of rates and taxes, insurance, water, electricity, and other services that the building requires.

Additionally, trustees may determine the amount of money to be raised for the aforementioned purposes, and will then raise the levy contribution on the owners in proportion to their participation quota.

Section 3 of the Sectional Titles Schemes Management Act sets out the functions of the body corporate, which must be performed by the trustees in terms of Section 7(1) of the Act.

Expenses that levies relate to

The Sectional Titles Schemes Management Act introduces the requirements for a reserve fund, which contains amounts sufficient to cover the cost of maintenance and repairs of common property.

This amount should not be less than the amounts that may be prescribed by the Minister in the Regulations of the Sectional Titles Schemes Management Act.

In cases where owners are entitled to the right of exclusive use, it is necessary to defray the costs of rates and taxes, insurance and maintenance, as well as the provision of electricity and water.

Trustees may also raise levies in order to extend the scheme in terms of a right reserved as set out in Section 25(1) of the Sectional Titles Act, as it may be necessary to defray the costs of rates and taxes, insurance, electricity and water, in the area of the common property affected.

The Sectional Title Act provides that trustees may make special levies upon on the owners in respect to the expenses not included in the budget for the financial year.

Amendments to levy collection in sectional title schemes

The most noticeable amendments to levy collection in sectional title schemes, is the future statutory requirements for a reserve fund to cover the maintenance and repairs of the common property, as well as the ability to apply to the Community Scheme Ombud Service.

Van Deventer and Van Deventer Incorporated

If you have any queries relating to levy collection, or if you want a clarified understanding of the purpose of levies or functions of trustees, contact the experts at Van Deventer and Van Deventer Incorporated.

 

[Title]Cooling Off in the Context of Property Purchase Transactions & The Consumer Protection Act

The Alienation of Land Act provides that for immovable property sale transactions of R250 000 and below, a cooling off period of 5 business days applies. In this period the purchaser may notify the seller and revoke the offer with no consequences.

Read More ...
Posted by Cor van Deventer on Wednesday, August 25, 2021 Views: 102


[Title]Lease Agreements, Consumer Protection Act & Public Liability

Lease agreements are no different either, tenants are in a position to study a lease agreement before signing off and accepting rented properties. Despite having lesser bargaining power, tenants may also negotiate terms of the lease agreement with the landlord before parties eventually settle on what they agree on.

Read More ...
Posted by Cor van Deventer on Tuesday, August 24, 2021 Views: 130


[Title]Does the Consumer Protection Act apply to Estate Agents?

The Consumer Protection Act 68 OF 2008 (CPA) came into effect in 2011 with an aim of ensuring fair, competitive and responsible markets that protect South African consumers as well as to promote ethical business practices. It makes a distinction between suppliers of goods and services on one hand, as well as consumers on the other. This article seeks to implore to what extent the CPA is applicable to Estate Agents.

Read More ...
Posted by Cor van Deventer on Tuesday, August 17, 2021 Views: 63


CloseCOVID-19 Corona Virus South African Resource Portal