DETERMINATION OF LEVIES IN BODIES CORPORATE

Levies in sectional title schemes are determined through a well-defined and regulated process that ensures fairness and transparency. The determination of levies is guided by various legal and financial considerations, as outlined in the Sectional Titles Act and the scheme's management and conduct rules.

The levies in a sectional title scheme are calculated based on the budgeted expenses required to maintain and manage the common property and shared facilities of the scheme. These expenses include, but are not limited to, costs for security, maintenance, repairs, insurance, and administrative fees.

The process of determining levies typically involves the following steps:

1. Preparation of the budget: The body corporate, which represents the collective interests of the unit owners, prepares an annual budget detailing the estimated income and expenditure for the upcoming financial year. This budget takes into account the anticipated costs for various services and maintenance activities.

2. Allocation of expenses: The budget is then allocated among the unit owners based on their respective participation quotas. The participation quota, determined by the developer or assigned by the Registrar of Deeds, is a mathematical formula that determines each owner's share of the common expenses.

3. Calculation of levies: Levies are calculated by multiplying the total expenses allocated to each unit by its participation quota. This ensures that each owner contributes proportionately to the overall costs of maintaining the common property.

4. Approval of levies: The budget, including the calculated levies, is presented to the body corporate for approval. The levies must be approved by a majority vote of the members of the body corporate in accordance with the scheme's rules and regulations.

5. Collection and management: The levies are collected by the body corporate in regular intervals, usually monthly or quarterly, and are deposited into a dedicated trust account. These funds are then used to cover the expenses outlined in the approved budget.

It is important to note that any changes or adjustments to the budget and levies must be communicated to all unit owners in a timely manner. This ensures that owners are aware of the financial obligations they are required to meet.

In conclusion, the determination of levies in sectional title schemes follows a regulated process that considers the budgeted expenses, participation quotas, and approval by the body corporate. This process ensures fairness and transparency in the allocation and collection of funds necessary for the effective management and maintenance of the sectional title scheme.

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