questions.answers
- General FAQs
The Sectional Titles Schemes Management Act No. 8 of 2011 (STSMA) requires all owners in a sectional title scheme to pay levies. Rates and taxes cover municipal services like garbage collection, streetlights, and road repairs. Levies, however, are used by the body corporate. These funds manage and maintain common areas, fund insurance, and cover shared expenses. In short, you need to pay levies as it is required by Section 3 of the STSMA.
A body corporate must be legally formed when the developer of a sectional title scheme sells the first unit to an owner. Section 2 of the STSMA states that all owners are part of the body corporate. It manages the common property, enforces the rules, and ensures compliance with the STSMA and other regulations.
Trustees are elected under the STSMA criteria to manage the daily operations of the body corporate. Section 7 of the STSMA lists their duties. These include looking after common property, managing the body corporate’s finances, and enforcing the rules. Trustees must act in the best interest of all owners and are accountable to them. They must follow the powers set by the STSMA.
Yes and no. According to the STSMA, owners can change the inside of their units as long as it doesn’t affect the building or other units. Changes to the outside or common areas need written approval from the trustees, as per Regulation 30 of the STSMA. Unauthorised changes can lead to legal issues, as they might affect other owners or the building’s structure. Extensions to a section are also different and handled under Section 24 of the Sectional Titles Act and Section 5(1)(h) of the STSMA.
In some sectional title schemes, water and electricity are metered collectively, with costs shared among all owners. This practice permits the corporate body to allocate these costs across all owners. Fixed costs, like service availability charges, must also be shared by everyone, no matter how much each owner uses.
Upon purchasing a unit in a sectional title scheme, you automatically join the corporate body as per the STSMA. The managing agent, appointed under Section 4, is authorised to manage the scheme’s finances, including billing. These charges are mandatory by law, so your consent is not required.
If you receive a high water or electricity bill, start by checking for possible leaks or faulty meters. Sometimes, a sudden increase in consumption can be due to a leak in the unit or common property. You can contact the managing agent to investigate further if the high bill is unexplained. They may arrange for the meters to be checked and ensure accurate billing. If a mistake is found, the managing agent can assist in rectifying it with the utility provider. If the issue persists, it might be necessary to involve a professional to assess your unit’s plumbing or electrical systems.
questions.answers
- Levy Contributions
The STSMA also requires certain obligations from body corporates. Like to have a reserve fund. This fund is for expected maintenance and repairs of common areas, as stated in Section 3(1)(b). In other words, it is for big repairs and replacements not covered by the regular levy. Its main purpose is to help body corporates be liquid enough to respond to the larger works required in proper maintenance without putting extreme financial pressure on owners.
Special levies are extra charges used for unexpected costs. These can be emergency repairs or any major projects not in the regular budget. According to Section 3(2)(a) of the STSMA, even if your regular levies are current, a special levy can still be implemented to cover additional expenses. Trustees can set these levies without owner approval for urgent matters. Special levies are temporary and calculated based on each unit’s share, ensuring fair distribution of costs. However, as the STSMA encourages, reserve fund levies should be used for long-term planning to minimise the need for special levies.
Levies cover various expenses as per Section 3(1) of the STSMA. The amount you pay is based on your unit’s share, ensuring costs are shared fairly.
Costs that levies cover include:
- Maintaining and repairing common property
- Insuring buildings and common areas
- Management and admin costs
- Security
- Adding to the reserve fund.
Levies cover visible and hidden expenses as required by the STSMA. Simply put, you may not see the services immediately. Levies pay for invisible services like insurance, security, management fees, and the reserve fund. Regular payments are vital for the complex’s long-term upkeep and financial stability, not to mention required by Section 3 of the STSMA.
We are sorry this happened to you. Under the Property Practitioners Act, No. 22 of 2019, estate agents and brokers must get a signed disclosure document from the seller before accepting a mandate. This document must be given to potential buyers OR tenants as part of the basic sale or lease agreement. However, the responsibility is yours. Even if these details are missing due to an oversight by the broker or agent, you are still legally required to pay your levies as required by the STSMA.
For bodies corporate, the disclosure must include the following:
- The conduct rules
- Financial status
- Details about levies, rates, taxes, and any special levies.
The Community Schemes Ombud Service (CSOS) levy is for everyone in sectional title schemes, homeowners’ associations, and other community schemes. It is a percentage of your monthly levy and is paid through the body corporate.
This levy gives you access to CSOS services such as:
- Independent dispute resolution
- Training and Education
- Rule checks
- Scheme registration
- Section 6(9) applications
- Certificates for annual returns
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