Wednesday, 13 February 2013 14:24

Levies on an equal “per owner" basis

Over many years of giving sectional title advice, I have seen a persistent theme of schemes charging levies on an equal "pro rata" basis, either for all expenses or for specified ones.

The root cause of most serious disputes in schemes is money. At the AGM, members have the opportunity to discuss, and have explained to them if necessary, how their money was spent. 

For various reasons, more and more people want to work at home rather than commute to an office every day, but this can pose a problem if they live in a sectional title (ST) scheme, and they may need to get the permission of the body corporate before they go ahead.

In most cases where sectional title schemes are placed under administration they would probably have been better off in the hands of the owners

In mid-2011 it was announced that two new Acts affecting Sectional Title and Community Schemes in South Africa had been signed by the President and were expected to become operational by the end of the same year. However, the end of 2012 is in site and these two Acts are still not operational

Monday, 08 October 2012 19:53

Making fines stick in community schemes

The executives in many sectional title schemes use fines as a way of discouraging rule breaking by members or tenants. 

A difficult situation may arise when it comes to voting at sectional title scheme general meetings and the correct procedures have not been followed with regard to proxies, or if those present are excluded from voting for various reasons, says Michael Bauer, general manager of the property management company IHFM

There is one issue that can be guaranteed to cause dissension among members of sectional title schemes and that is the raising of special levies for rescue or repair purposes, says Michael Bauer, general manager of the property management company IHFM

Increasingly, buyers are choosing to invest into sectional title schemes because of factors such as the level of security and the community lifestyle as well as the affordability compared to full title homes, and the reduced costs of maintenance. As such Sectional title has become one of the most popular forms of property ownership in South Africa. But do buyers really understand the rules governing and protecting them once they move in?

The trustees of bodies corporate are allowed to implement a new budget and levies from the beginning of the financial ahead of the AGM; also important for sectional title schemes is when the levies are due and products are available in assisting Bodies Corporate to successfully turn their arrears debtors into cash and alleviating the collections headaches associated with non-payers

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