Why am I paying so much levies on my flat?

Levies in a sectional title scheme are calculated based on the expenses required to maintain and manage the common property, the shared facilities, as well as the shares expenses of the scheme. Apartment buildings in more affluent suburbs or older apartment buildings that have high maintenance requirements, typically have higher levy fees. Higher fees are also found with complexes that take up a large overall land size, but have a low density ownership.

Each owner in the scheme is responsible for contributing towards these expenses in proportion to their participation quota (PQ), which is calculated based on the size and value of their unit, relative to the other units in the scheme.

The budget for the financial year is prepared by the Trustees, usually with the assistance of the managing agent, should the scheme have a managing agent as a service provider.

The budget is approved by all the owners who are present at a quorate AGM and includes expenses such as:

• Maintenance and repairs of the common property and shared facilities, such as the building structure, gardens, swimming pool, and security systems.
• Insurance premiums to cover the common property and shared facilities.
• Utility bills, such as water and electricity, that are used in the common property and shared facilities.
• Management fees for the body corporate and managing agent, if applicable.
• Any other expenses required to manage the scheme.

Once the budget has been approved by the body corporate, each owner is notified of their levy contribution for the year. The levies are payable monthly in advance and are usually due on the first day of each month.

It is important for owners to pay their levies on time to ensure that the scheme has sufficient funds to cover its expenses, maintain the common property and shared facilities, as well as be able to provide for unexpected expenses of the common property such as the breakdown of common heating facilities or the lift or similar, shared infrastructure.

Owners who wish to understand how their levies are calculated should speak to the scheme management agent or the trustees. It is further important that owners attend the annual general meeting of the scheme because this is where the levies for the new financial year, is discussed and voted.

Owners of sectional titles properties can consult with the Community Schemes Ombud Service (CSOS), should there be any disputes among the trustees and owners or with the managing agent.

Consult Julies Attorneys’ property lawyers in Johannesburg for legal advice on the specific circumstances of your case.