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The Concept

Whether you are an owner, a trustee, a managing agent or an attorney, you will agree that the contributions levied on members by the body corporate are essential to the efficient running of sectional title schemes. Often referred to as the “life-blood” of the body corporate, owners have to pay levies (now called contributions) and trustees, managing agents and attorneys may have to collect them. Every person involved in a sectional scheme needs to understand how contributions work, from the procedures to be followed when they are raised to the consequences of non-payment.

Why are contributions raised?

Each body corporate is required in terms of section 3(1)(a) and (b) of the Sectional Titles Schemes Management Act of 2011 (“the Act”) to establish an administrative fund and a reserve fund, reasonably sufficient to cover its expenses. A body corporate’s expenses include the repair, upkeep, control, management and administration of the common property, payment of taxes and other local authority charges for electricity, gas, water, fuel, sanitary and other services to the building/s and land, any premiums of insurance, and sufficient for the discharge of any duty or fulfillment of any other obligation of the body corporate. Additionally, the body corporate must prepare a 10 year maintenance, repair and replacement (MR&R) plan and pay for its implementation from the reserve fund. Contributions are raised to gather the the money necessary to pay for these expenses and usually make up the bulk of the funds credited to the body corporate’s administrative fund.

How are contributions raised?

The outgoing trustees estimate the body corporate’s expected expenditure from both the administrative and the reserve funds in the next financial year  and these budgets are considered at the annual general meeting (“AGM”). Once approved by owners, perhaps with alterations, the trustees meet again to divide the estimated expenditure between the owners and work out what amount each owner must pay as their annual contribution, in what installments the contribution will be paid and what rate of interest will be charged on overdue  payments. The trustees then notify each owner of the amounts due and each owner is then liable to pay their contributions, normally in monthly installments.

How is the quantum of each owner’s levy contribution determined?

The approved budgets of estimated expenditure are normally divided amongst owners in accordance with the participation quota (PQ) of each owner’s section. The PQ is expressed as a  percentage to four decimal places worked out, for residential sections, by dividing the floor area of each owner’s section as shown on the sectional plan by the total of all the floor areas of sections in the scheme. For example, if owner A’s section has a floor area of 50 square metres and the sum of all the sections floor areas is 1000 square metres, then owner A’s PQ will be 5,0000 or 5% because 50 ÷ 1000 = 0,05 x 100 = 5.

However the PQ formula for liability to pay contributions is not absolute; it can be varied if the correct procedure is followed. Section 11(2) of the Act makes it possible for the developer when opening the sectional title register, or later for the body corporate by special resolution, to make rules by which the liability of the owners to make levy contributions is modified so as not to be based on the PQ. But where an owner is adversely affected by the adoption of a rule in this regard, their written consent must be obtained. A rule of this nature could be adopted in a scheme where the owners specially resolve that owners of ground floor sections should not have to contribute towards lift maintenance costs, or where it is specially resolved that owners will pay an equal contributions, provided of course that those owners who are negatively affected give their written consent.

Special contributions

In terms of section 3(3) of the Act and prescribed management rule (PMR) 21(3)(a) the trustees may from time to time raise special contributions for expenses which are necessary but were not budgeted for in the estimated expenditure approved at the last AGM. Trustees do not have the power to raise a special contribution when a budgeted expense exceeds the approved estimate. They can only raise a special contribution for unexpected expenses which were not included in the budget. These special contributions may be payable in one lump sum or by such instalments as the trustees think fit.

It is important to note that the trustees alone have the power to raise special contributions for genuinely necessary and unbudgeted expenses. Many owners think that because they were not consulted by the trustees or did not vote in favour of a special contribution, that it was invalidly raised. Not so! Trustees are under no obligation to consult owners in this regard and are entitled to raise special contributions in accordance with the provisions of PMR 21(3)(a).

When do contributions and special contributions become payable, who is liable to pay them and what happens when units change hands during a financial year?

In terms of section 3(2) and (3) contributions and special contributions are due and payable on the passing of a resolution to that effect by the trustees of the body corporate, and may be recovered from the persons who were owners of units at the time when the resolution making the contributions due and payable was passed. However, if a unit is transferred during the course of the financial year or during the period in which a special contribution is paid, the new owner becomes liable to pay the contribution, pro rata, from the day of transfer.

This can become a contentious issue when, for example, a special contribution is raised and becomes due and payable after an owner has sold his unit but before the transfer of ownership has taken place. As soon as the unit has been transferred from the seller to the purchaser the the new owner becomes liable for any unpaid portion of the special contribution . Similarly, if the day after transfer has occurred a special contribution is raised for something that occurred ‘before the purchaser’s time’ – the purchaser as the owner at the time the special levy was raised and became due and payable is liable to pay the special contribution.

Can an owner ever legally withhold payment of a contribution?

If an owner believes for some reason that the body corporate owes him money, he may also believe that he is fully entitled to withhold his contributions, to ‘set-off’ the debt he believes is owed to him. Imagine this scenario:

An owner has had water leaking into his section and the leak is clearly emanating from a defect in the common property. The owner has asked the body corporate on numerous occasions to repair the defect, yet after two months the body corporate still has not done so. The frustrated owner resorts to employing a contractor to repair the common property defect and foots the bill which comes to R15000. His levies are R2500 per month so he decides that he will not pay levies for six months to set-off the money he believes is owed to him by the body corporate. Although this action may sound reasonable it is not legally justified.

One is only entitled to set-off a “liquid debt” once a matter has been adjudicated, in such a case, by a Community Scheme Ombud Service adjudicator or a judge. Therefore an owner cannot simply decide to set-off what he considers to be the amount of his claim against the body corporate by withholding his contributions without the matter being adjudicated. He must continue to pay his contributions and can attempt to recover the money spent on repairing the common property defect by declaring a dispute and applying to the Ombud for relief.

Can I ever re-claim contributions that I have paid to the body corporate?

PMR 21 states that owners are not entitled to a refund of contributions lawfully levied upon them and duly paid by them. Therefore, unless the owners can prove that a part or the whole of a contribution levied upon them was unlawful, they are not entitled to recover or be refunded any money that they have paid to the body corporate.

What sanctions do I face if I don’t pay my contributions?

The prescribed management rules set out a ‘sanction’ for owners who do not pay their contributions in spite of a court or adjudicator’s order to do so. PMR 20 provides that, under these circumstances, the member is not entitled to vote for an ordinary resolution. However, as this “no vote” sanction is only applicable to ordinary resolutions the owner is still entitled to attend trustee and body corporate meetings, and to speak and to vote for any special or unanimous resolutions. It is clear that this sanction is not really effective and does not act as a deterrent to owners considering not paying their contributions.

An owner who continually defaults in his levy payments is effectively being subsidised by the other members of the body corporate who conscientiously pay their contributions. This is not an equitable situation and the body corporate is obliged to follow a process of notifying the owner that they are in arrears and must pay the outstanding amount within a certain time period, and if they do not, it may apply to the Ombud for a payment order.

If an owner believes that he is entitled to withhold his levy then he should declare a dispute with the body corporate and apply to the Ombud for relief. If an owner is in default for any other reason, he will have to defend himself in an adjudication instituted by the body corporate to recover the arrears and will almost certainly find that he has to pay the outstanding amounts, as well as interest and legal costs.

This article is published under the Creative Commons Attribution license. 

137 Comments.

  • Edgar Stafford
    21/01/2016 11:03

    I am a pensioner and purchased a unit in a sectional Title Complex in Edenglen, Edenvale Gauteng.
    The access control is biometric that most of the time does not work so a pin number has been allocated to the unit number. My problem is that tenants that leave still has access via the pin number, come in ,drop their kids to play and use the pool without proper supervision. Some of the kids are unruly , kicking balls around in the unit yet the Trustees refuse to act, What if damage is done or somebody drowns? I have gone so far as to get a quote for a card system last year and their it stops.
    My question is, in the event of a crime what recourse do I have as an owner? Can we as Owners force the Body Corporate to comply with a secure access control?
    Your reply and advice will be appreciated.
    Regards
    Eddie Stafford

    • Paddocks
      27/01/2016 08:43

      Dear Eddie.

      Thanks for your question. In terms of section 38(j) of the Act and PMR 28(3) the trustees must do all thins reasonably necessary for the enforcement of the rules. The trustees have a fiduciary responsibility to the body corporate and are not indemnified against acts done in the discharge of their duties that are mala fide (acting in bad faith) or grossly negligent. If the trustees do not do all things reasonably possible to enforce the access and safety rule then it may be possible that they are held liable for any cost, loss, expense or claim that arises if it can be shown that the trustees were mala fide or grossly negligent.

      Regards,
      Paddocks

      • Theresa
        11/04/2019 14:52

        Hi,
        I live in a complex and the levies goes up every year. End of last year they told us they will increase the levies more than usual because water usage is very high, witch I understand but now they want to increase our levies and each unit owner must pay for a water meter installation. My question is: if each unit owner install a water meter, then our levies must be cheaper. Am I correct to assume that?

        • Can you help me
          23/10/2019 11:20

          Hi Theresa, exactly my question, as where I stay, the levies for a very old building (30 years plus) the levies is extremely high, due to water usage, reason why levies is high. Levies is almost the same as my bond!

      • HBK
        20/05/2019 09:19

        How do you get the trustees laible as all of them protect each other?

  • Mary
    05/02/2016 14:41

    Today owners of units in a block in Sydney were advised they were required to pay $25,000 in a special levy, to help cover costs of legal action that the Body Corporate has taken out against the property developers. The court case was apparently lost so owners now have to pay this special levy within one month. To make matters worse, more special levies of similar amounts are being predicted.

    What recourse do owners have in such matters, if any? To come up with $25,000 in one month is a hardship for most.

    Any advice would be greatly appreciated.

    • Paddocks
      18/02/2016 11:05

      Hi Mary,

      Paddocks is a South African firm and not an expert in Australian strata title law, so we are not able to make any worthwhile suggestions.

      Thanks,
      Paddocks

  • sophia
    23/02/2016 00:08

    Pls help me. The windows outside need new pitty ad old ones are falling off. Does that come out the levy.

    • Paddocks
      02/03/2016 11:58

      Hi Sophia,

      The cost of replacing the putty should be shared 50/50. The putty holds the window in place and is therefore part of the window installation. There is putty on the inside of the section which also might need replacing in the process. Therefore I suggest that the cost be shared between the owner and body corporate.

      Thanks,
      Paddocks

    • Can you help me
      23/10/2019 11:22

      Hi sophia, same where I stay, the patty come of, looks awful, must I do it myself, next time, as we had some one who fix it 4 years ago, bad work was done, as almost all of the patty is of.

  • Geoff
    19/04/2016 15:28

    I am a pensioner and bought a sectional title unit in Randburg . my offer was accepted in August 2015. In September 2015 a special paint levy of R500/month was raised. I was not told about this special levy until February 2016, when I found it on my statement. I took transfer in November 2015. Upon querying this special levy, I was sent a letter that was dated September 2015. The letter doesn’t say how many months the levy will be in place but I have been told the quote to paint all 30 units is around R360,000-00 which would result in the special levy run for two years. I’m disappointed that I wasn’t advised about this and also unsure if I even have to pay the levy as I had not taken transfer until after the decision was taken . Also, should I sell my unit, will I have to pay the balance outstanding?

  • Neela
    20/04/2016 11:43

    Hi our building has only six units, when there is a meeting most of the owners give their proxy to the chairman with the result that whom ever is there cannot argue as the chairman has the majority of the proxies is this legal, the chairman doesnt bring any written proxies as he states that he was phoned this is causing the chairman to do whatever he wants

  • Frank
    07/09/2016 20:49

    Hi, the body corporate recently had an AGM that I could not attend. the result of the AGM was an agreement to increase the levy by 17% and added a special levy for painting.
    I recently received the report after the AGM which indicated this. I subsequently received a invoice for the levy that has increased by 30%.
    Is it legal for the AGM/trustees to increase a levy by 30% even though they indicated 17% in the report?
    I queried the mistake and was told that they made a typo in the report.
    I then requested the meeting minutes on the 30% agreement but nothing has been forth coming.
    what are my rights as a tenant.

  • leticia
    24/10/2016 10:35

    Hi, our body corporate wants to raise special levies of R42000 per unit. The special levy is for 2 x lifts @ R580000; spalling and water drainage for R150000; gutters and facias @ R350000; painting and waterproffing @ R530000/R1100000. We have 42 townhouse units and 32 flat units. Can the townhouse owners be held responsible for the lifts special levy? Can they raise so much special levy all at once?

    • Paddocks
      04/11/2016 10:03

      Dear Leticia,

      Thank you for your comment. However, we do not provide free advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Marelize
    09/03/2017 16:33

    Hi. We pay an montly levy due by the 7th of a month. If the levy is oaid 1 day late we get charged a collection fee automatically by the agent as well as a body corporate late payment penalty (the latter I don’t have a problem with). The management company does NOTHING extra. Not a phone call. Not a special email. Just add the amount of R75 to your next statement and on the monthly mail where it is attached (normally atound the 11th) they say – you did not pay in time therefor the collection fee. Is this legal? Should they not at least have ‘done’ something to recover costs to charge thes collection fee?

    • Paddocks
      23/03/2017 15:51

      Dear Marelize,

      Thank you for your comment. We are more than happy to help, however we do not give free opinions / advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Michael
    09/08/2017 09:00

    Dear Paddocks,
    Firstly this is an excellent article as it contains pertinent information.

    My question is that my body corporate together with the managing agent have recently embarked on billing owners annually in full for thier levies- unless they sign a form that gives them essentially carte blanche over billings, charges, penalties and so on. I have refused to sign the form but have agreed to continue to pay my levies in full and on monthly basis as previous done. My questiom is there any law that allows owners to be billed the full annual levies in a single month?

    Appreciate your response.

    Regards
    Michael

    • Paddocks
      23/08/2017 15:37

      Dear Michael,

      Thank you for your comment. We are more than happy to help, however we do not give free opinions / advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you. Alternatively, join us on http://www.paddocks-club.co.za.

      Kind regards,
      Paddocks

  • Linda Hattingh
    04/09/2017 09:14

    I have now tried several times for more than eight years to get the damage from my roof leak fixed. The roof leak was only fixed after seven years of struggling. Please advise.

  • Thabo
    10/10/2017 19:00

    Good day,

    I have received an email stating that my application for land has been approved and has been transferred to my name. I am currently waiting for the developer to start building but I have already been served with a bill for levies. I have not as yet used any of the facilities as my application has been approved a month ago. Is it normal that I be expected to start paying levies on an open land that I dont even stay in? My understanding is that I am expected to pay levies when I am staying in the estate not on bond registration. This becomes unfair as I am paying levies where I am currently renting and also pay for the levies where I am waiting for the coinstruction to take place. When I called in the lady just told me it is for security and lights and I told him I dont stay there and I derive no benefit for the things she just mentioned why must I pay she said I “just” need to pay thats all. She had no reason expect that I have to pay. Please advise when is the right time to pay for levies?

  • Thomad
    10/10/2017 21:13

    If developer is still building units. Is he not liable for the levy of the land owning?

  • Zimkhitha
    24/10/2017 16:56

    Good day

    I recently brought a flat in May and I was informed of the Property Management company which manages the complex. which is to ensure statement are sent to unit holders. I then contacted the company in June 2017 requesting for statement so I can make the payment. I then receive a statement in September 2017, no disputes done I then question why it has taken this long for the statement to be sent. I was then informed that I have been handed over to lawyers. I then inform the Property Management company that I will only be able to make payment in October which I then did. I now receive a statement from the lawyers of money I have to pay which now has been debited to my account. Can you please advise as to what process can I follow to dispute the charges.

  • Jaco
    02/11/2017 10:13

    Can a levy be decreased after the AGM (mid year)?
    The wait removal was part of our levy. The munisipality now decided to add it to our individual account. Now can we change (decrease) the levy?

  • Ryan
    09/11/2017 10:27

    Hi there, advise needed please?

    As a sectional title owner, am I allowed to refuse paying a special levy if i can simply not afford it?
    Or can i pay R200 a month instead of the R2000 they require?

    thanks in advance!

    • Paddocks
      08/12/2017 10:24

      Dear Ryan,

      Thank you for your comment. We are more than happy to help, however we do not give free opinions / advice. We do offer a 10-minute consultation telephonically for R390. If you are interested, please email consulting@paddocks.co.za.

      Kind regards,
      Paddocks

  • Faith
    01/12/2017 09:41

    In our complex we pay gardening service separate from the Body Corporate levy, is this the practice and what are levies for?

    • Paddocks
      08/12/2017 10:25

      Dear Faith,

      Thank you for your comment. We are more than happy to help, however we do not give free opinions / advice. We do offer a 10-minute consultation telephonically for R390. If you are interested, please email consulting@paddocks.co.za.

      Kind regards,
      Paddocks

  • Marianette
    22/01/2018 12:14

    If an owner in a Sectional Title Scheme is in arrears with his levies, is he still covered by body corporate insurance and may he claim?

  • Vivienne McCance Price
    19/03/2018 08:13

    Morning.
    The block of flats I live in front faces onto a busy road and has 7 garages. The back of the property faces onto a quiet lane and we have had a number of bad experiences, such as hijacking, etc. There are 5 garages at the back lane.
    I am looking to have a walkway built onto the garden section of the back garages so that those owners garages will have direct access into the garden rather than walk in the street to the gate into the property. Each garage to have a door and garage doors to be automated so that individuals drive directly into the garage, close their garage door and can walk out of the front door onto the walkway inside the property.
    Unfortunately the front garages are not able to do this sort of thing as they do not have access from their garages directly onto the property.
    I have been told by various people that in fact ALL the owners can be asked to contribute to this construction not just the 5 owners at the back. So my question is, are all owners (12 units) responsible for the payment of this under their PQ, in which case how do we go about this? Or do only the 5 garages at the back take responsibility for the payment thereof and is it reasonable that everyone makes equal payments as all garages are the same size?
    Thank you.

  • Marlene Mare
    20/03/2018 07:40

    good day, I wish to know which part of a dwelling form part of a PQ calculation? I was told only the section covered with tiled roof. we have an open park area covered with chromadeck inside our property and also a patio area that was an open patio to hang washing that we covered with chromadeck. there is a gap between the top of the wall and the roof. does these areas have to calculated as part of the PQ’s of a home?

  • STEVEN
    07/04/2018 11:31

    I NEED SOME ADVISE PLEASE.
    IF A PLACE IS NOT YET FULLY REGISTRED,AS A ESTATE CAN THEY THE APPOINTED HOA START CHARGING THE TENANTS LEVIES. WE FEEL THAT THIS IS AGAINST THE LAW. WOULD SOMEBODY PLEASE ANSWER THIS.
    THANK YOU.

    • Paddocks
      10/04/2018 09:12

      Hi Steven,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Home Owners Association 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Selby
    15/04/2018 00:09

    Hi Paddocks

    Before I purchase a unit can I be furnished with the previous owner outstanding bills? because I would like to purchase a unit with you guys. I just want to know what I’m getting myself into before I purchase

    • Paddocks
      04/05/2018 16:50

      Hi Selby,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • STEVEN
    15/04/2018 23:42

    Goodday.
    We need to know that if a proposed area has not yet been officially approved can they start asking for contributions. As they come with stories to collect the money now leave it in the bank on a persons private account until the place has been approved. Is this legal? please help.
    Thank you

    • Paddocks
      04/05/2018 16:51

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course (R199 admin fee). You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Fiona Craill
    16/04/2018 10:16

    I am a homeowner in a cluster complex South Africa and have not received Annual Financial Statements since 2011.
    I am now being offered statements only for 2015, 2016, 2017 that show a disclaimer that opening balances cannot be verified due to unforeseen circumstances – can I withhold my levies as the Home Owners committee have not fully disclosed to me what has been done with my levy over the years of missing accounting statements?

    • Paddocks
      18/05/2018 16:50

      Hi Fiona

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Home Owners Association 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Elize
    16/04/2018 12:29

    My mother owns and resides alone in a flat in Phalaborwa (my father passed away about 3 years ago) and her only income is a small monthly pension (Less than R10 000 per month)

    The body corporate increases levies without having meetings and notifying the home owners, they act and make decisions in general with the owners there having no say;

    Now, about 3 months ago they decided that they needed new water pipes and their reason being that somewhere is a leakage because the water consumption is extremely high (not providing any proof of the high consumption)
    The contract to install new pipes went to the Body corporate’s (the trustee’s) son, which I already doubt if that was legal..
    please give advice?

    Not only does the owners of the flats feel that this was an unnecessary expense, since there was no problem with the water and there was nowhere any leakage to be seen, now most if the outside taps do not even work anymore and the sprayers that use to be there is also not working anymore, to top it all off, my mother received notification via sms saying, and I quote: “Special Resolution payment R3900 payable before 30 June 2018. Legal action will follow non-payment” this being fees charged to the home owners for the new water pipes installed.

    There was also a sms sent out (only after the one above) saying: “From 1 May 2018 every owner is responsible for all excess payments on insurance claims regarding: “Geysers, Ceilings Roof damage, Outside water pipes”

    Is this people acting within the legal framework.
    Are they allowed to act like they do?

    • Paddocks
      04/05/2018 16:49

      Hi Elize,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course (R199 admin fee). You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Pieter Pienaar
    03/05/2018 12:24

    I have been told that copies of the last month’s bank account (current account) will not be distributed to owners because a levy defaulting owner(who has since paid as a lump sum) will be identified. Surely owners of sections in a Sectional Title Scheme have the right to know who the defaulters are? Similarly, if owners consistently contravene the Conduct Rules they should be identified in the trustees minutes.

    • Paddocks
      21/05/2018 17:07

      Hi Pieter,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • reshay
    21/05/2018 16:09

    Hi,can i be levied without my permission

    • Paddocks
      21/05/2018 17:06

      Hi Reshay,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Lana
    22/05/2018 15:47

    Good Day Paddocks
    We are owners in a sectional title complex in windsor. The complex has a body corporate with a trustee and a managing agent. Now I have two questions regarding this:
    How much is the maximum levies to pay as currently it is R2000 in levy that we have to pay. What steps do I take when I cannot afford to pay this monthly?
    Secondly, we recently had an incident at the complex where our car was stolen. Thereafter we requested the gate to be fixed and they closed it but it is not fixed properly with brackets. There is a process to be followed in getting and approving of quotes between trustees and management agent. We wrote an email with possible solutions to this challenge but nothing was tabled. What can we do?

    • Paddocks
      23/05/2018 11:57

      Hi Lana,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Sarisha
    24/05/2018 12:14

    Good day.

    We are facing challenges with the current managing agents in our complex.

    There are certain things budgeted for in our levies.

    For example, we have budgeted R500 for insurance for instance. The managing agents pay the the insurer R600. Are you allowed to pay Any amounts above the budgeted amount on the prescribed levies?

    Here is another situation. For example, we haven’t budgeted for the intercom subscription but the managing agents pay R200 for the intercom. Are you allowed to pay for things which are not stipulated in the monthly budget?

    There is a third scenario. We have requested for bank statements. But the agents are refusing to give those statements to us.

    The bank account is a trust account but the account is on the managing agent’s name.

    Are we allowed to get those bank statements?

    They simply refuse to send those statements to us but there after they send building statements.

    Please assist.

    Kind regards.

    • Paddocks
      24/05/2018 16:39

      Hi Sarisha

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Janet English
    27/05/2018 07:08

    As a Trustee member of a Body Corporate in a Sectional Title complex, am I correct in saying that no member of the Body Corporate, trustee or Chair person may be in arrears with levies of any amount at any time. If they are, they need to step down and be dealt with as any other owner would be dealt with and handed over. Many thanks.

    • Paddocks
      28/05/2018 17:00

      Hi Janet,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Nozipho
    28/06/2018 13:53

    Good day
    I would like to find out, if monthly levies are necessary in a town house where the lawns are devided and both owners are responsible for maintaining their side? Also everyone pays for own municipal bills. Do we really need to put money in every month just for insurance and painting every 10 years and maybe occasional fixing the roof? Im thinking we can each get own home insurance and then put money together whenever we need to paint the outside or do the fence? Am I deluded?

    • Paddocks
      06/07/2018 13:37

      Hi Nozipho,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Home Owners Association 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Bongiwe
    17/07/2018 06:28

    Good day.

    I wish to find out if it will be legal for a BC to cut or limit electricity to a unit that owes it levies? The unit has a prepaid electricity meter installed, so that the levies owed are for other services and will include electricity in so far as way back before the BC decided to go on prepaid.

    • Paddocks
      25/07/2018 09:56

      Hi Bongiwe,

      Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
      – We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.

      Kind regards
      Paddocks

  • Heide Botha
    07/09/2018 14:27

    Hi there
    How can I be forced to pay Levies when my estate managers act unethically. The claimed my geyser was burst – I sent 3 independent plumbers at my cost to inspect and all 3 gave the same report – my geyser is fine.
    Now I receive a bill to pay insurance excess for a geyser replacement that I did not give consent to replace.
    I have video proof that my geyser is fine. All proof was sent to the insurance and they still put the claim through. Please advise how do I get rid of untrustworthy estate managers. The trustees do nothing.

  • John
    30/10/2018 16:51

    Hi.
    If I have a prepaid electricity meter in my exclusive use area garage in a body corporate complex, can I have it taken out if I do not want to use it as there is no need for electricity in my garage? What is the process to follow?

    • Paddocks
      02/11/2018 09:01

      Hi John,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer a 1-week Free Basics of Sectional Title short course.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks

  • Martha
    08/11/2018 18:06

    My levy account is uptodate after struggle.I have requested for the services to be reinstated via email.I have received feedback on email from the agency stating the my servicves will not be reinstated due to fact that the account was overdue for long time.Apparently the decision was taken by the board of trustee. How can I pay for something that I am not allowed to use?(Dustin and gardern services habe been suspended and intercom disconnected.

    • Paddocks
      13/11/2018 13:59

      Hi Martha,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks

  • Leah
    03/12/2018 10:58

    Good day I have recently purchased a sectional title property and the sales agreement said the levies will be charged at 9 rands a square metre. Now they’ve changed it to R10 a square metre. Can they do this? And on what grounds if I have signed for 9rand sqm?

    • Paddocks
      07/12/2018 09:13

      Hi Leah,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer a 1-week Free Basics of Sectional Title short course.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks

  • Sonja
    10/01/2019 11:28

    Good day, Please advise if the body corporate can withhold services if an owner does not pay his levy?

    • Paddocks
      06/02/2019 09:36

      Hi Sonja,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer a 1-week Free Basics of Sectional Title short course.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks

  • Rebone Dikotla
    30/01/2019 09:59

    Good Day

    Please advise whether or not it is legal to charge new owners of a sectional title a once off levy when they buy property. Is this acceptable?
    Thanks

    • Paddocks
      06/02/2019 09:41

      Hi Rebone,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer a 1-week Free Basics of Sectional Title short course.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks

  • Cindy Webb
    03/03/2019 07:39

    Good day.

    I need advice on the following issue.
    I bought a sectional title unit in Kalgaro Fourways in 2016. Unfortunately due to lack of experience, I was sold a NON DISCLOSED fraudulent property.

    The reason why I’m saying this is because the previous owners didn’t disclose the ongoing leaking issue in my unit which has cost me now over and above 27000 rand to repair.Not to mention lawyer fees etc.

    It’s now apparent that the leak is coming from a building defect and the leak still hasn’t been repaired.

    Every time it rains, the water leaks from my unsuite bathroom sealing as the water drips from my sealings. It’s now going into my walls and cupboard.

    I’ve been up and down with lawyers and management and the problem doesn’t seem to be taken seriously and lands on deaf ears.

    I’m now starting to feel frustrated as this is now going on 3 years of struggling.

    I’m now thinking of putting a STOP to my levies and not paying my monthly payment of 1420 rand as I’m not getting the service I’m paying for.

    I’d like this matter dealt with asap because the leak won’t fix itself.

  • marc
    06/03/2019 14:52

    if a resident owner asks the Trustees of HOA a question and they are not able to have the info, are the Trustees allowed to carte blanche contact a Professional Attorney of their choice and the send the said resident a bill.
    Thanks.
    Marc

  • Megan
    08/03/2019 18:51

    I live in a security complex in southern suburbs cape town… Our body corporate has run into financial difficult due to mostly the water account.. Our levy has increased over the last two years from R900.00 to R1400.. Our levy basically cover, water, refuse, security in evening, gardening, property management and repairs and maintenance for 36 untits. We have to instal water meter per unit, which I am in agreement with but they refuse to reduce our levies.. I will also be paying for the full cost of the water meter and installation.. Any advice on how to get the body corporate to reduce levies!

  • Moeketsi
    14/03/2019 10:55

    I am a owner at Winchester Peaks and we pay ridiculous levies not even funny my Unit is a 76sqm is there anyway that I can investigate this matter as the service that they provide is not even up to standard .

    Levy for month of May 2018
    1 501.86+10.5% increase 2019
    Csos government levy
    20.04
    Reserve fund levy
    155.74

    This is excluding Water\Electricity

  • Siphelele
    26/04/2019 09:42

    Good day,

    We bought a stand in an estate in 2017 October, specifically attracted by the fact that there was no time frame set for when one must build.

    In Nov 2018, the trustees passed a resolution that all stands that have been vacant for 2 years will be penalized R2000 after year 2.

    So this month, I received a levy statement with a penalty of R2000.

    Surely this can’t be legal. I would think that the resolution would be applicable to all those who properties register after the date the resolution was taken.

    Or at the least, our 2 years to build start from the date the resolution was made.

    Please advice.

  • Ornet
    01/05/2019 18:23

    If an owner does not pay levies and the matter has been handed to debt collectors, do the trustees have a right to cut electricity and water supply of the bad debtors?

  • Marita
    03/05/2019 12:23

    What is the Ombud that is mentioned here? Does all body corporates needs to be registered with it?

  • Kiewiet
    20/05/2019 13:23

    Good day,

    We are in the process of doing the online course as trustees by Graham, however we are at a disadvantage at this stage. Our managing agent has advised that one can load outstanding levies onto a unit’s prepaid to force them to pay the levies for the month with a added amount for the arrears. Is this legal? The units in question has been advised multiple times that there contributions are in areas…

  • Maureen
    23/05/2019 21:48

    Good evening

    I am a owner of a flat in a complex that has 24 units. 19 of the units are owned by a company that bullies the rest of the owners because they are a majority holder.

    Recently they held a meeting and they decided to increase levies and back date the increase to march (the meeting was held in May) is this legal?

    Invoices where sent saying i must pay R2000 from R480? What can we do as the 5 owners to object decisions made by this company?

  • Jessica
    27/05/2019 20:55

    Good evening. I need some advise. We live in a complex where some of the owners have never paid levies since moving in. One owner is R60, 000.00 behind on levies alone. What can be done about this? We have a GM coming up and I would like to bring this matter up. Is the managing agents allowed to inform other owners who is defaulting on paying their levies?

  • maggie govender
    13/06/2019 11:19

    Does the body corporate need a resoultion every year for arrears on a levy account?

  • Jonathan Heath
    14/06/2019 13:21

    Can the owners of units in a sectional title development refuse to approve the budget for the next year at an AGM? This is to allow the incoming Trustees to investigate the expenses and then prepare a new budget.

  • Louise
    21/07/2019 21:25

    Hi, is a debit order rejection fee incurred from a managing agent allowed to be included on my levy bill?

    • Paddocks
      06/08/2019 15:50

      Hi Louise,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.

      Kind regards,
      Paddocks

  • Karen
    16/08/2019 12:41

    Hi please let me know if a body corporate is allowed to charge vacant land for refuse removal, sewerage removal, electricity connection, communal electricity charges?

  • Luis
    01/10/2019 07:43

    Hi There
    Just a quick question.
    Is it against the law for a body corporate (or managing agent) to backdate levies?
    i.e
    In this case there were disputes with the “budget” and hence caused the increase of the levies to be delayed.
    At the AGM it was agreed to backdate levies to the “correct” date at which the levy increase should have started.

    I just want to know if that is legal or not.

    Thanks.

  • Lee
    14/10/2019 17:33

    Good Day

    I would like to find out.. I live in a complex our levies are being increased as we were sitting in the trustee meeting the amount being present to us on paper at the meeting did not at up. The Developers claim that all figures are estimation and the figures wont be correct. My question are we liable to pay even though the figures were not correct. They also present us with another once off payment which needed to be paid for a electrical fence and this estimate comes to 800 plus our levies. Can they only give us a month notice to pay the levies and the increase amount of 800

  • Lebo
    28/10/2019 14:44

    Hi Please help me i recently bought a property in a sectional tittle complex and when i my water comes up to over 500 monthly when i asked managing agents i was told they use the PQ method to determine what i need to pay and also that Ekurhuleni will not allow us to move from mothly billing system for electricity to prepaid .
    How possible is that as i feel i am being overcharged . Is it possible that as a owner to apply for prepaid meter for water and electricity?

  • Irma Bense
    05/11/2019 10:38

    We have been notified of an AGM to be held on the 19th Nov. In the agenda for the meeting, the Trustees have mentioned that they will be starting a special levy of R500 backdated to Sept 2019. Can they back date special levies?

  • Naomi Pens
    06/11/2019 14:26

    Our Body corporate they dont do any maintanance in our complex , we sweep our own yard and the building is dirty and old but they charge us a lot at the end of the month only staed in that complex for 3 years but now am owing them 72000

  • Marble
    07/11/2019 13:49

    Hi Paddocks

    We have a challenge of levy payments, some owners simply do not want to pay. In the past, the managing agent made submissions to the attorneys for debt collection. however that had its own consequences as the attorneys would charge the Body Corporate attorney fees in a case where they cannot locate the culprit.

    My question is, does the law allow, for the Body Corporate to sign a petition against the none paying owner, to collect levy money from such an owner’s tenant? or rent such an owner’s flat so as to recover the levies?

    • Paddocks
      08/11/2019 09:44

      Hi Marble,

      Thank you for your comment. However, we do not provide free advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Veronica Williams
    13/11/2019 16:45

    Hi. My mother owns (no bond) a sectional title unit. Last year was a very tough year financially and she fell behind on her levies. She was given notice that they were handing the account over to lawyers. She has tried really hard to communicate with the lawyers and the management group. She has been paying either the full levy amount plus some extra if she can or as much as she was able to afford. I have just recently found out the whole situation and I’m trying to help her as best I can. The lawyers have sent a notice that they are seeking a judgement against her – she is obviously quite scared at the moment. She has no cover for legal assistance and doesn’t know what comes next. Is there any advice that you might be able to give?

  • remone
    05/02/2020 13:26

    Hi, i have an inquiry with regards to special levies. I recently purchased a sectional title unit and special levies has been raised. The reason for the special levies is due to over expenditure in budgeted expenses such as cleaning, gardening , security. The expenses of certain services were doubled without an explanation. Is it correct for special levies to be raised in this situation

    • Paddocks
      07/02/2020 09:14

      Hi Remone,

      Thank you for your comment. However, we do not provide free advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Mare-Lize
    26/02/2020 14:32

    I am an owner and trustee at a body corporate. We make use of a gardener that is of no use, when we give him orders he refuse to do it, according to him he only have one boss and that is the old lady that is “running the place” since the beginning of time. He gets paid R600 per day that he comes, he only cleans at 2 houses in the complex. We had a meeting in January and 4 out of the 6 owners decided that we will rather make use of gardening services as it will be cheaper, now the chairperson is to “slapgat” to pull through with the decision, every time we ask him about it he just never get back to us. Is there anything else we can do about it, it feels like all our levies goes to a gardener that we don’t benefit from.

    • Paddocks
      28/02/2020 08:59

      Hi Mare-Lize,

      Thank you for engaging.

      That’s a great question. This is something our attorneys would be able to assist with. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Martin
    24/03/2020 10:52

    Dear Paddocks,
    In 2005 we purchased a piece of 3 ha land in a Game reserve which has 107 plots with full title. A lovely piece of paradise in which we planned to retire. At the time there was no Body corporate and the reserve was managed by the developer. Our levy was R350 and Water and Lights R800 which were paid directly to the developer.
    In 2009 a Body corporate was created and we paid our levies directly to them. The developer still had 27 of the plots and was exempted from paying any levies by the body corporate, however during AGM meetings the developer was given 27 votes when we had to vote. The majority vote counts which resulted in the levy cost spiralling out of control and far outgrowing the inflation rate. With inflation taken into account the levy should be in the region of R460, but it is already R2300. The Body corporate leadership had a fall out with the developer and he increased our Water and lights to R4300 per month. We reported this to Nersa and they were not able to help us. This means our monthly cost went up from R1150 to R6600 which is out of our reach. During a AGM in 2016 we were not allowed to vote because we were R500 behind on our levy because of an admin fault on their side. At that point I stopped paying our levy and declared a dispute against the body corporate. We then had a meeting with them to discuss the dispute. They admitted their fault and apologized and further agreed with my points on the dispute and asked me to summarize my dispute and they will get back to us. They never got back to us, and while we were still waiting for their feedback they handed us over to their attorneys. A court case was held against us, without our knowledge, which we lost and the next thing we knew the sheriff arrived at our door step to write up our belongings to be sold to pay the arrear levies. What is the best way to proceed?

  • Tshepo Letwaba
    21/04/2020 20:02

    Is it legal for the Trustees of the sectional title to cut water supply to a unit if the owner of that unit does not pay levies?

  • Anisha Munien
    07/05/2020 17:08

    Hi I would like to know, we have experienced financial difficulty in the past 2 years, causing us to default on our levies Electricity and water, and since last year when we were back on our feet we have kept to our payments to eliminate this and are continuing to do so, and we are living in a sectional title and the body corporate has a building insurance and you as an owner are not allowed to be double insured.
    Can the body corporate neglect to help you for structural damage which falls part of the building.
    Please advise

  • S Moodley
    08/06/2020 14:54

    The Body Corporate has submitted a claim for damages to a number of units based on Quotations obtained by the Body Coporate .The Insurance company was only prepared to pay the costs to repair as opposed to replacement . The Managing Agent advised that when the funds are released from the insurance company, same would be paid to the Unit Owner. The money was paid to the Body Corporate and the service provider is not prepared to attend to the repairs at the price agreed upon with the Body Corporate. The Owner is now told by the Body Corporate that he must go and attend to the repairs at whatever the price is and when he has done so and provided proof then the Body Corporate then only will the Body Corporate reimburse him with the money paid by the Insurance company. The Owner has had no dealing with any service providers or the insurance company. Everything was done by the Body Corporate . Is this right or fair that the Body Corporate can accept the value of a claim and settle at the value with the Insurance company and now hold the Owner to ransom by holding on to the funds received Surely the Owner is contributing to insurance and ought to have some say

  • Megan
    18/06/2020 08:17

    Hi, I just bought a flat in Johannesburg. We paying for ever uptill security which is non-existent and the building is dirty – the bins never get taken out. No caretaker, nothing. What can I do?

    • Paddocks
      19/06/2020 14:52

      Hi Megan,

      Thank you for your comment.

      This is something our attorneys would be able to assist with. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Richard
    01/07/2020 00:18

    Hi

    Can a Body Corporate publically publish an age analysis of all unpaid levies by unit number or are the personal financial affairs of the members of the Body Corporate considered confidential?

    • Paddocks
      06/07/2020 10:32

      Hi Richard,

      Thank you for your comment.

      This is something our attorneys would be able to assist with. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Candy
    19/08/2020 20:53

    Hi, I am the owner of the Unit and I am in arrears on my levies and I ask the body Corporate for the arrangement to pay the arrears. And they said I must write down my budget for the month and they will decide how much I can pay. Is that fair to disclose that?

    • Paddocks
      24/08/2020 10:45

      Hi Candy,

      Thank you for your comment. Our legal team do not provide free advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Andrew Nel
    22/08/2020 06:27

    Good day, we have unit which is the only asset in an insolvent estate. Due to the arrears levies and condition of the unit it had not sell for the past 5 years. We now received an offer to purchase but it is far less than half the outstanding amount (and value of the unit). The bank also wants to share in the sale. Some of the trustees and attorney handling the offer to purchase came up with “discounted levies” where the trustees (not the BC) make the move to accept the offer. “At least have a new owner who is paying levies”. The term “discounted levies” is not mentioned in the STMA or regulations and I as a Trustee do not know how to handle it. Only the BC by unanimous resolution can write off levies. We do not get 80% of the owners at AGM’s. We are at a deadlock.
    I need input please.
    Thank you.

    • Paddocks
      24/08/2020 10:43

      Hi Andrew,

      Thank you for your comment. Our legal team do not provide free advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Gerhard dedekind
    14/09/2020 12:56

    I pay R 1,200 for maintenance and there is a wall between my property and neighbors. According to me it is common property. The wall is broken my question is who is responsible for repairs.

    • Paddocks
      21/09/2020 09:51

      Hi Gerhard,

      Thank you for your comment. This would be something that our legal team would need to assist with. Please send an email with all the details of the matter to consulting@paddocks.co.za and the team will provide you with a no-obligation quotation for their assistance with your matter.

      Kind regards
      Paddocks

  • Riley
    27/10/2020 21:25

    Hi
    I pay my general levy contribution every month without fail however a special contribution was implemented and I found myself in arrears. For the past 3 months I have started paying my normal levy and special contribution amount as required however the body corporate demand that I pay off the arrears of the special contribution within 6 months which at this time I just cannot afford. I did go to them for help and suggested a 24 month plan but was denied. I really can’t afford to pay off the arrears of the special contribution within 6 months.. What can I do?

    • Paddocks
      28/10/2020 12:31

      Hi Riley,

      Thank you for your comment.

      This is something our attorneys would be able to assist with. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Devon
    02/11/2020 18:35

    Hi

    Can a body corporate back date charges where a clerical error was their own? In my scenario, I was not being charged correctly and have been paying as per invoice ce received. Now that I require a levy clearance, they are trying to claim 36 months flworth of back charges. Is this legal?

    Thank you

    • BW
      01/03/2021 11:20

      Same here, same problem. Clerical error by management agent. I alerted them to it early on but it was nor rectified.
      Did you get an answer to this question? I’d be grateful if you can share? Thanks!

  • Gin
    21/12/2020 12:24

    Hi
    We have a Levy calculation for the last 15 years that incorporates both PQ (Participation Quota) and PU (Per Unit/ Equal Value) principles. This calculation has been around since the developers no longer owned a portion of the complex and all 100% of the owners unanimously voted in the change.
    Our trustees are considering changing this back to PQ only. This change could double the levies of larger units and reduce smaller unit levies by +_33%. My understanding is that the trustees require consent from every owner that is adversely affected before any changes to the levy can occur. If a single owner that is adversely affected rejects the change, the new levy calculation cannot be implemented. Please confirm whether this is correct.

    • Paddocks
      04/01/2021 13:17

      Hi Gin,

      I trust all is well, thank you for getting in touch with us. This is something that our legal team would need to advise on, please send your query, along with the name of the property and any supporting documentation, to consulting@paddocks.co.za, and the team will provide you with a no-obligation quote for their assistance with your matter.

      Kind regards
      Paddocks

  • Regina Botha
    19/01/2021 12:29

    Hi my mother in law owned a unit in a complex, but she died in november 2020.The estate is now in the hands of an executer. The levy is going up to R600/month for 2021. My question is who is responsible for paying the new levy rate seeing that the property is not on my husbands name yet and we don’t have the authority to increase the debit order on the bank.

    • Paddocks
      19/01/2021 12:57

      Hi Regina,

      Thank you for your comment. Please note that our legal team would need to advise on this. Please send the details of the matter, including any supporting documentation to consulting@paddocks.co.za and the team will provide a no-obligation quote for their assistance with your matter.

      Kind regards
      Paddocks

  • Agatha Maria Viljoen
    21/01/2021 17:39

    Do you pay levies in advance also so you pay for Feb and march is that legal to pay cause levies maintenance in advance

    • Paddocks
      22/01/2021 16:55

      Hi Agatha,

      Thank you for your comment. Please note that our legal team would need to advise on this. Please send the details of the matter, including any supporting documentation to consulting@paddocks.co.za and the team will provide a no-obligation quote for their assistance with your matter.

      Kind regards
      Paddocks

  • Francois van Loggerenberg
    24/01/2021 18:12

    Thank you for the article. I would like how the Body Corporate calculate the contribution for an exclusive use area. Can you help me with a formula?

    • Paddocks
      25/01/2021 11:31

      Hi Francois,

      Thank you for your comment. Please note that this would be something that our legal team would need to assist with – please email consulting@paddocks.co.za and they will provide a no-obligation quote for their assistance. Alternatively, how to collect owner contributions for EUAs is covered in our Sectional Title Survival Manual, which you can purchase at the “Books” link at the top of our website.

      Kind regards
      Paddocks

  • BW
    01/03/2021 11:16

    Hi, the Bode Corporate of the flat block in which I own a flat appointed a new management agent. This agent forgot to add the monthly levy for an exclusive use area to the monthly levy invoice. I alerted them to the omission in the first month. It took them 5 months to add it to the account. Was on the monthly account for a few months, then disappeared again for 5 months.

    Now I want to sell the flat and the BC wants me to pay for all the months for which the management agent did not charge me for the use of the garden. Do I have to now pay the ‘arrears’ that was never charged (as far as my levy statements I received I paid everything I was charged). Or is there a way for holding the management agent accountable for the incorrect invoices that they shared with me? Can I hold them accountable for the amount they never added to my account even though I raised this with them numerous times?

    • Paddocks
      03/03/2021 10:46

      Hi BW,

      Thank you for your comment. Our legal team would need to assist you with this matter. Please email consulting@paddocks.co.za, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Louise
    01/03/2021 21:29

    Thank you for the informative article.
    At our complex water consumption formed part of the levy, but individual water meters have since been installed. Apparently our levies will not be adjusted, for water which is now being charged individually, as well as pro rata in the levy, as the amount which would have been adjusted, will instead become the new, increased levy (levies are X amount, less Y amount for the water, plus Y amount for the levy increase).
    So – water is now charged individually as an additional cost, and levies stay the same.
    Could you kindly advise:
    a) is this legal? should owners not on the one hand receive an adjusted levy, while on the other hand (separately, as this should be 2 completely separate issues), be charged an increased levy?
    b) since no one can give us the figures of how much the pro rata amount in our levies was for water, how can we know that the resultant increase in our levies is not more than the allowable 10%?
    Thank you so much for your time and assistance

    • Paddocks
      03/03/2021 10:47

      Hi Louise,

      Thank you for your comment. Our legal team would need to assist you with this matter. Please email consulting@paddocks.co.za, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks

  • Wihcs
    11/03/2021 14:10

    Good day,

    According to the act when do levies for a new build in a HOA complex become payable, upon first registration of the bond? Or upon final registration one house is completed and the final payment is made?

    • Paddocks
      12/03/2021 07:29

      Hi there,

      Thank you for your comment. Please note that this article relates to sectional title, not HOAs. However, our legal team should be able to assist with your query. Please send the query to consulting@paddocks.co.za and they will provide a no-obligation quote for their assistance.

      Kind regards
      Paddocks Team

  • Annie
    19/03/2021 12:47

    Good day,

    With regards to levies – do the “old” Regulations under the Sectional Title Act 95 of 1986 specifically Annexure 8 Rule 31 to the Sectional Title Act still apply? What is the use of the “Sectional Title Scheme Management Act 8 of 2011. Why are the 2 sets of rules and regulations. An annexure 8 in one act and an annexure 1 in another act – all referring to management rules. Which one does one use.

    Please help.

  • Angelique
    24/03/2021 15:49

    Hello
    I find myself being the owner of sectional titles in a sectional title scheme as well as being appointed as Trustee after my husband’s passing. I have received the municipal rates and refuse accounts and noted that they charge each of the nine units the amount of R834 per month for refuse seperately. That includes charging the 3 outbuildings (store rooms) of 9, 10 and 15sqm respectively each R834 per month. The total floor area of the sectional title scheme is 810sqm.
    I understand that each owner should pay rates seperately, but surely each unit can not be expected to pay R834 refuse. And surely the outbuildings should be included in the rates and refuse of the main buildings. It works out to more than R7506 per month for refuse removal only. I have tried to find info about this but could not. I would like to know my rights before approaching the local municipality which is under administration. Thank you for assisting.

    • Paddocks
      25/03/2021 16:52

      Hi Angelique,

      Thank you for your comment. Please note that our legal team would need to assist you with this matter. Please send the details of the matter to consulting@paddocks.co.za, and the team will provide a no-obligation quotation for their assistance with your matter.

      Kind regards
      Paddocks Team

  • Tswakai
    30/03/2021 15:45

    Good day, I have purchased a property in Sanberg Village which is in a sectional title. We are still awaiting the property to be transferred to our name. The deed of sale had an option for occupational rent excluding levies, to which we were only paying the rent not the levies as we believed that they are the responsibility of the seller. The body corporate has subsequently invoiced for levies for February and March to which we disputed and the transferring attorneys acknowledged that the seller will pay.
    Yesterday the transferring attorney says the levies are the responsibility as per clause 3 of the deed of sale occupational rent excluding levies.

    • Paddocks
      31/03/2021 09:55

      Hi Tswakai,

      Thank you for your comment. Please note that our legal team would need to assist you with this matter. Please send the details of the matter to consulting@paddocks.co.za, and the team will provide a no-obligation quotation for their assistance with your matter.

      Kind regards
      Paddocks Team

  • Nkele
    23/04/2021 12:00

    Hi All! I am in a terrible situation in my complex and I don’t know what to do now.

    When I bought my unit I was working and later lost my job. I started not to pay my levies but other months I was paying. I informed the body corporate about my situation and that I am a single parent.

    In 2018 individual water meters were installed and I could not afford to pay my bill.

    Earlier this year ( 2021) I went to negotiate my bill and to also make an arrangement. The meeting went successfully and I never defaulted on my arrangement payment.

    I tried to make an arrangement for my levy arrears, unfortunately trustees and Attorneys refused, stating that the arrangement amount is very small.

    Even after the unsuccessful arrangement for my levy, I started to make payment into my levy account. Although I could not pay the entire amount I am owing, I paid something.

    March 2021 a resolution was taken to combine water and levy bill.

    Interested since 2020 started to be around R900 some month R1000. This month interest rate is R1500. By the way my levy is R1200 plus Other municipal bills, csos, reserve amount, water and water arrangement. There is also collection commission charged since I paid something into my levy.

    Interested rate is 18.5% per annum.

    Is this interest rate correctly charged and can they charge collection commission even if payment was made voluntary by myself as owner and without any arrangement whatsoever from attorneys?

    • Paddocks
      23/04/2021 16:50

      Hi Nkele,

      Thank you for your comment. Please note that our legal team would need to assist with this query. Please send the details of the matter to consulting@paddocks.co.za and the team will provide a no-obligation quote for their assistance.

      Kind regards
      Paddocks Team

  • Suzette
    30/04/2021 09:32

    Please advise if the Sectional Title Act allows for discount to be passed on a special paint levy if some of the owners would like to pay the full amount up front by a specific date?

    • Paddocks
      30/04/2021 16:58

      Hi Suzette,

      Thank you for your comment. Please note that our legal team would need to assist with this query. Please send the details of the matter to consulting@paddocks.co.za and the team will provide a no-obligation quote for their assistance.

      Kind regards
      Paddocks Team

  • Henry
    20/05/2021 13:24

    Hi there, I own a house in a sectional title. The tap used for watering the garden outside the house got broken and was eventually replaced by the Body Corporate but I see that they have charged me for the excess amount incurred for the replacement of valve and tap heads. Are they correct in doing so?

  • Graham Paddock
    21/05/2021 11:18

    If the tap is in your exclusive use garden, yes you are liable for any costs the BC incurs in maintaining it.

    If this is not a complete answer to your question, please consult a local attorney for advice based on your particular circumstances.

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