Sectional title levies payable as soon as trustees pass them


Section 37 (2) of the Sectional Title Act, says Michael Bauer in his latest weekly sectional title newsletter on, General Manager of IHFM, the sectional title management company, states that these are payable immediately following the passing of the resolution by the trustees of a body corporate. This, he said, is usually taken to mean 14 days after the Annual General Meeting in the case of the ordinary levies.

“The due date, amount and payment form of levy contribution is usually the most important resolution that trustees will pass in any given year,” said Bauer, “and it will very often be the one most debated by body corporate members, even though once their trustees have agreed to it, they have no right to object.”

The Sectional Title Act, added Bauer, makes provision for the trustees to take court action against any sectional title owner who does not pay his levy promptly.

“One important fact regarding this matter should be clarified,” said Bauer, “and that is that the levy is the responsibility of the person who owns the unit on the day the resolution is passed by the trustees.

“Unit holders who were about to sell their units have sometimes argued that an increased or special levy should be paid by the new owner – but, although this is understandable, it is not what the sectional title act states.”

Special, or increased, levies, added Bauer, should not be resented by members as it is through these that their properties can be correctly maintained and thus increase in value.

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