Sectional title corner – Is my levy unfairly calculated?
I have taken a look at my complex’s proposed budget and I see a second rates increase for October this year to April this year. The problem I have is that the percentage increase is not spread evenly across the units and I get an increase of 27% while some get 13%. Is this allowed? – Reshini
Hi Reshini, I will have to look at the levy schedule of the current levies and the proposed schedule of the new levies to be able to give you a complete answer. But what usually find with some of the complexes we take over from previous managing agents is that when we do a “Health Check” on the complex we see that the levies have been incorrectly calculated all along. Some people are paying more than they should be and some people are paying less than they should. This mostly happens where they were using the incorrect method of calculation – i.e. the Sectional Title Act states that unless the body corporate decides to work on nominated values (and it passes the necessary special resolution for it) – the levies must be calculated using the participation quotas of the sectional plans. When we find errors in the calculation we notify the trustees and the owners, and correct the levies. This is a possibility in your case, but I will need more information to determine that.
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Who is Karien Coetzee?
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.