“Owners of sectional title units,” he says, “expect their levies to be managed properly and that, once they have paid these, no further calls should be made for additional payments from them, even if it can be clearly shown that capital raised in this way will add value to their units.”
The main cause of members’ resentment, says Bauer, is often they will feel that the special levy is being raised because the trustees have failed in their fiduciary duty either to collect all outstanding levies or to keep the building in good condition and as a result expensive repairs or improvements have become necessary.
However, said Bauer, in many schemes the levies are only just enough to maintain the premises in “working order” and to run the essential services. When there are leaks in the roof, decaying electrical systems, breaches in the security system, new windows needed or even so simple a task as a repaint of the perimeter walls – it is discovered that there is not enough money available to get the work done.
Sometimes, says Bauer, the members will agree in principle to a special levy being raised for a specific purpose but will not have a clear idea of how much is required. This, too, can then lead to disagreements when the amount of the special levy is revealed, especially among those whose “participation quota” in the scheme is above the average and they, therefore, feel that they are subsidising other members.
Resentment can also be caused among ground floor members when levies are called for for lift and stair improvements or for the installation of a lift for the first time – but the rule is that all members must contribute.
A well-managed scheme will have levies set slightly higher than the day to day needs of the building so that a healthy reserve fund is built up to tackle improvements as and when they are needed. Here, says Bauer, the sums spent in this way are repaid later by the increased value of each unit in an attractive, well maintained scheme.

