Sectional Title Levies

Although the sectional title community uses the word levies the act and regulations refer to them as contributions it is possible then for owners to face two levy increases in a year.

Sectional title levies. Johannesburg scores of sectional title st schemes and home owners associations hoas around the country are going to be in financial trouble soon if owners don t start making up the levy. In sectional title schemes levies are the only source of income and owners are obliged to pay these but what should be kept in mind by the trustees is that the owner does not become liable for his levy payments when the body corporate approves the budget or decides that it needs to collect money what is needed is a resolution passed by the trustees stating the amount of the levy to be paid. 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.

Calculate 5 percent of the total levies and divide this by twelve to arrive at the monthly levy payment. However it is important to understand what these levies cover and who is responsible for what.