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A special levy is an additional amount of money that needs to be raised for a project upgrade or extensive repairs that is outside the normal monthly expenditure of the complex says jansen.
Special levy sectional title. Such a levy would be in addition to the normal monthly levies for which members are customarily responsible. What is a special levy. There are many sectional title owners and buyers who are under the impression that the legislation which made it compulsory for schemes to establish and maintain substantial reserve funds also did away with the need for unpopular and often problematic special levies.
The sectional titles schemes management act 8 of 2011 the act which came into operation on 7 october 2016 had the impact of amongst other amendments repealing section 37 of the sectional titles act 95 of 1986 which section dealt with special levies. Sectional title schemes management act. As a result many new owners of sectional title schemes are surprised when they receive notice of a special levy.
While provisions have been set in the sectional title schemes management act stsma which became effective on the 7th october 2016 for a reserve fund to be established for future maintenance and repair work to common property in sectional title schemes there might still be the need for special levies to be raised in certain circumstances. Special levies in a sectional title scheme from time to time a body corporate may be required to raise a special levy on its members.
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