HOW DO THE COSTS OF RUNNING THE SCHEME GET PAID?

HOW DO THE COSTS OF RUNNING THE SCHEME GET PAID?

The costs incurred in running a scheme have to be paid by the body corporate. These costs include:

• Rates, taxes and other charges
• Insurance premiums
• Repairs and maintenance of the It is all the land in a sectional title complex, as well as those parts of the buildings which are not included in a particular section or unit. Common property can include stairwells, lifts or elevators, carports, swimming pools, gardens, etc. Afrikaans - Gemeenskaplike Eiendom
  ">common property
• Wages and salaries of cleaners and other staff
• Water and electricity used on the common property
• Provision of Collateral for the bank that a client pledges in case they default on their mortgage payment. Afrikaans - Sekuriteit
  ">security or other services

 

These costs are paid by individual owners in the form of a monthly Levy is the owner of a sectional title unit’s proportionate share of the costs incurred by the complex for the month. Afrikaans - Heffing

">levy, calculated in accordance with the Participation Quota Used to calculate the individual owner’s monthly levy in a sectional title, it is determined by dividing the size of each section into the total floor area of all the sections. Afrikaans - Deelnemings Quota

">Participation Quota or nominated value for their unit. The Act requires an owner who has the benefit of an The owner of a sectional title unit can never become the owner of any portion of common property, but they can acquire the right of the exclusive use of a certain portion, such as gardens and parking bays. Afrikaans - Eksklusiewe Gebruiks Area

">exclusive use area to make an extra contribution to cover Taxes are levied on all property owners by the municipality. Rates are included in the levy if you buy Sectional Title. They are payable on a monthly basis and are calculated as a percentage of the value of the property. Afrikaans - Eiendomsbelasting

">rates and taxes, insurance and maintenance of the exclusive use area. This applies to all registered exclusive use areas and to exclusive use areas created under the rules of the 1971 Act, but may not apply to those created under the rules of the current Act.

In addition to the above, the body corporate is obliged to establish a fund for future maintenance and unexpected expenses. The size of this fund is not specified in the Act, but a wise body corporate will make sure that the fund is adequate for the size of the scheme and the present A clause that renders the operation and consequences of the contract as a whole dependent on an uncertain future event. A suspensive condition suspends the operation of the contract for a period of time, subject to the occurrence of a future event, and only if and when the condition has been fulfilled will an enforceable contract exist. In the case where a resolutive condition is stipulated, the contract is immediately binding and will remain binding unless the condition is not fulfilled. Afrikaans - Toestand

">condition of the property. If the fund becomes excessively large, the Act does not allow any part of the excess to be refunded. However, the excess could be used to subsidise future levies or to improve the common property.