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Sectional title corner – How to calculate the CSOS levy

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Q

Good day, please confirm that in order to correctly calculate the CSOS levy, one does the following:

Take monthly levy of flat and add the monthly MRRP levy and ignore the levy for the garage and  maids room and storeroom and the contribution for the exclusive use parking bay. From that figure of the two levies, one must deduct R500 and multiply by 2% with a maximum of R40. Thank you – H Berman

A

Good day, as per the new Community Scheme Ombud Service (CSOS) Act, 2011 (Act no. 9 of 2011) the CSOS Levy is calculated on the “monthly levy charged by the community schemes”.


How to pay the CSOS levy


This term “monthly levy” is very wide as the amended Sectional Titles Schemes Management Regulations only refers to “Administrative and Reserve Funds” on the one hand and “Contributions and Charges” on the other. “Monthly levy” could be seen as the administrative fund which must be used for the operational expenses of the scheme, this would then include all levies charged monthly to cover the expenses of the scheme, e.g. monthly levy, parking levy, security levy, domestic effluent levy, storeroom levy, etc. and not only amounts linked to the words “monthly levy”. Currently this is still a grey area in the industry and more clarification would be required from CSOS on this.

The calculation should then be straight forward:  The (“monthly levy” LESS R500) multiplied by 2%, to a maximum of R40.


Got a burning question? Email mariette@hometimes.co.za and we will be sure to assist you


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Answered by Andries Erasmus at Belmont Property Management

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ungerermariette@gmail.com

Mariette Steynberg is a qualified economist with a post-graduate diploma in financial planning. She has enjoyed working on holistic financial plans for clients in various stages of life, as well as a development economist assessing the socioeconomic impacts of new developments. When she is not working, Mariette enjoys parenting her quirky, delightful toddler girl. Cloth diapering, Eskimo kisses and the importance of reading to your child are all causes close to her heart. Mariette is passionate about financial education and hopes to use the experience she has gained to share knowledge with HomeTimes’ readership. Her goal is to provide information that is implementable by everyone.

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