Calculation of Levies

The calculation of levies is done by using the formula of the participation quota of each unit in a sectional title scheme, in order to determine their contribution towards the repair, upkeep, management, control and administration of the common property.

The function of a body corporate in the Sectional Title Act

In the Sectional Titles Act, the entrusted functions of a body corporate include the establishment of funds to cover administrative expenses, the payment of rates and other local municipal charges, as well as raise the levy contribution on the owners in proportion to the participation quota of their section.

What is a participation quota?

According to the Sectional Titles Act, a participation quota is a formula used to determine the percentage that an owner should contribute towards the collection of levies.

The participation quota of a section is expressed by four decimal places which can be arrived at by dividing the floor area to the nearest square metre, as determined by the developer.

The formula for the calculation of levies

Levies can be calculated using the following formula:

Calculating a participation quota

Total square meters of a sectional title scheme ÷ Total square meters of each unit = Participation Quota.
e.g. 1162 m2 ÷ 95 m2 = 8.1756

Calculating a levy

Total budgeted amount x participation quota of the unit = Amount
e.g. R 221 088.00 x 8.1756 = R 180 7527.05
( R180 7527.05 x 100.0000) ÷ 12 = R 1506.27
Rounded off to a total of R 1506.00

Van Deventer and Van Deventer Incorporated

If you have any queries relating to the calculation of levies, or if you want a clarified understanding of the participation quota, contact the experts at Van Deventer and Van Deventer Incorporated.

Cooling Off in the Context of Property Purchase Transactions & The Consumer Protection Act

The Alienation of Land Act provides that for immovable property sale transactions of R250 000 and below, a cooling off period of 5 business days applies. In this period the purchaser may notify the seller and revoke the offer with no consequences.

Read More ...
Posted by Cor van Deventer on Wednesday, August 25, 2021 Views: 890

Lease Agreements, Consumer Protection Act & Public Liability

Lease agreements are no different either, tenants are in a position to study a lease agreement before signing off and accepting rented properties. Despite having lesser bargaining power, tenants may also negotiate terms of the lease agreement with the landlord before parties eventually settle on what they agree on.

Read More ...
Posted by Cor van Deventer on Tuesday, August 24, 2021 Views: 973

Does the Consumer Protection Act apply to Estate Agents?

The Consumer Protection Act 68 OF 2008 (CPA) came into effect in 2011 with an aim of ensuring fair, competitive and responsible markets that protect South African consumers as well as to promote ethical business practices. It makes a distinction between suppliers of goods and services on one hand, as well as consumers on the other. This article seeks to implore to what extent the CPA is applicable to Estate Agents.

Read More ...
Posted by Cor van Deventer on Tuesday, August 17, 2021 Views: 418