We frequently find that potential buyers in Sectional Title schemes are concerned about the cost of a property in a sectional title scheme particularly when the monthly levies are considered as "high". Often there are further concerns about the possible escalation thereof in the future says Gerhard van der Linde Managing Director of Seeff Pretoria East.
Van der Linde agrees that it is important to fully understand what these levies amount to and what are covered by these levies before making a decision to invest in a sectional title scheme. He furthermore recommends that buyers obtain details from the estate agent who markets the property on the financial position of the Body Corporate, what is included in the levies, if any special levies have been raised and who will be responsible for the payment thereof should a sectional title property be sold.
The Sectional Titles Scheme Management Acts and The Community Schemes Ombud Service Act regulate the management of Body Corporates, and buyers and owners can have the assurance that these acts govern how a body corporate must manage a scheme and conduct its affairs.
Van der Linde says that clients sometimes consider levies to be high, but one needs to understand what you are paying for, and how these levies are determined.
All owners of units are also "participants" in the common property of a sectional title scheme. Monthly levies, and in some cases special levies (for example when the buildings in the scheme needs painting) are paid as a contribution to the upkeep and repair of such common property to be managed by the appointed trustees, acting on behalf and in the interest of the body corporate, ie the owners of the units.
These monthly levies may include also the cost of garden services in the common property, security access control, communal swimming pool maintenance, insurance of the complex and provision for future maintenance expenses.
Despite the levy, chances are that the cost of living in a sectional title scheme may be lower, as the cost of maintaining the common property is share by all the owners and not paid by one owner as is the case with a full title property.
The body corporate is a legal entity made up of all owners in the sectional title scheme and affords every owner the opportunity to be part of the decision making process regarding the management and control over the buildings and ensuring that its financial, administrative and physical needs are taken care of.