The lowdown on sectional titles, body corporates and levies

Body corporate...levy...special levy...trustees...the world of sectional title real estate can seem full of jargon. In this article, Jawitz Properties gets to the bottom of what the role of the body corporate is, who the trustees are and what they are responsible for, what your levies pay for, and when a special levy might be raised.

The basics of a body corporate

The body corporate consists of everyone who owns property within a sectional title block of flats or complex. As a property owner and body corporate member, you have a right to have a say in how things are run, and a responsibility to take an interest in what is happening with regards to the property. This means paying your levies on time, attending the annual general meeting and, if possible, volunteering to become a trustee as and when this is required. The rules and regulations around body corporates are written into law and can be found in the Sectional Title Schemes Management Act.

Entrusting the trustees

Trustees are members of the body corporate who are appointed, on a voluntary basis, to manage the sectional title and ensure that everything runs smoothly. It is up to the trustees to ensure that rules are followed, levies are paid and that the sectional title scheme does not get into financial difficulties.   

The trustees' job also includes employing staff when required and ensuring that those maintaining the common property have everything they need, from lawnmowers and gardening equipment to pool chemicals and cleaning products. These items will be purchased out of the money raised by collecting levies from owners.

The lowdown on levies

If you live in a sectional title property, you will be required to pay a monthly levy. The money raised from levies is used to pay for the common property to be maintained. It also covers wages for caretakers and security staff, and pays for contractors who will inevitably need to be called out to carry out repairs every so often. Levies also cover the cost of water and electricity used on the common property. When possible, these funds will also pay for any improvements or additions to the property that may be needed, although in some situations, a special levy will need to be raised to cover those costs.

Owners should note that levies do not cover repairs or maintenance to their units, but only to the common areas of the block of flats or complex.

What's special about special levies?

Over and above the levies that are paid monthly, the trustees of the body corporate can, when required, raise a special levy. This will be done when an unforeseen expense crops up and there is no provision within the existing annual budget to cover it. It is important for those buying into a sectional title scheme to understand that if there is a pre-existing special levy that is still being paid by the body corporate at the time when the property becomes theirs, they will be liable to pay this it. 

Property owners can be required to pay the special levy as one lump sum, or the trustees can divide the lump sum into monthly payments for three, six or 12 months. 

If you're considering buying a sectional title property, your Jawitz #RealPartner can help. We have a wide range of sectional titles properties on the market in every corner of South Africa, and with decades of experience with sectional titles, we fill our prospective buyers in on everything they need to know. Contact us today and allow us to help you find the sectional title property that's right for you and your family.