Must I pay a special sectional title levy?

2016-03-02 06:00


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories


I AM considering buying property in a sectional title scheme. The estate agent mentioned that a normal levy will be payable every month, but the trustees of the body corporate of the scheme have the authority to determine a further special levy from time to time. I was aware of the normal monthly sectional title levy, but what is a special levy?


Quite often, buyers and owners are unaware of all the financial implications of owning a sectional title unit. An important aspect thereof is to be aware of and differentiate between a normal monthly sectional title levy and a special levy. These levies are not determined in the same manner and the person liable for payment thereof may also differ.

Section 37(2A) and prescribed Management Rule 31(4B) of the Sectional Titles Act provide the trustees of the body corporate of the sectional title scheme with the discretion to determine special levies by passing a resolution to that effect. The trustees can, however, only pass a resolution for a special levy if they adhere to the following two requirements.

The first requires the special levy to be necessary Z this means that it must be urgent and cannot wait to be included in the next financial year’s budget. The second requirement is that the expense may not already have been included in the annual budget of the scheme. The trustees have the discretion to state whether the special levy should be paid in a lump sum or in installments over a certain time period.

The Sectional Titles Act provides that the person who is the owner of the sectional title unit at the time of the passing of the resolution for the special levy is liable for the full amount of this levy. This means that should a special levy be passed and an owner sells his unit thereafter, that owner remains liable for the full payment of the special levy before the unit can be transferred to the new owner. The Body Corporate of the sectional title scheme can even make such payment a condition for the issuing of the Levy Clearance Certificate, needed to enable the transfer of the sectional title unit.

In general, special levies are for emergencies only and to deal with unforeseen expenses or expenses that have been inadequately catered for in the annual budget, but should not be used for maintenance expenses, which must be included in the annual budget of the sectional title scheme.

Whatever its purpose, if the resolution is validly passed, the owner of a sectional title unit will have to pay the special levy.

  • Corlia de Beer is an associate at Phatshoane Henney Attorneys.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.


6 myths about male cancer

It is important to be aware of the most prevalent cancer diseases amongst men in our country.


You won't want to miss...

Who are the highest paid models of 2017?
10 gorgeous plus-sized models who aren't Ashley Graham
5 top leg exercises for men
10 best dressed men of 2017
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.