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Restriction on Trustees and special levies

By willem visser on Thu, 29 Jul 2010 at 12:14

The restrictions placed on the trustees in terms of the rules are an amount of R 15 000 in case of emergencies. Our complex consists of 50 units. The units are freestanding units with an upstairs balcony and downstairs patio underneath the balcony.20 of the units are experiencing leaking balconies. The cost of repair will amount to R220 000. The balconies and patios are not registered as exlusive use areas or as part of the units. We had legal opinion that it is common property and body corporate is liable for maintenance.The leaking balconies are causing other problems i.e.cracking of plaster, damaging ceilings etc. In terms of rule 31(4) it is necessary to have it repaired and it was also not budgeted for. Can the trustees raise a special levy without calling a SGM and requesting approval for the expense?

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RE: Restriction on Trustees and special levies

John Yates replied on Thu, 29 Jul 2010 at 12:33

A special levy may be raised by the Trustees without referring to the owners but it is a good idea to call a general meeting to explain the position that necessitates implementing a special levy as this is not the most popular of situations.
Special Levies may only be raised for items that were not included in the Trustees' Estimates of Income and Expenditure that were approved by owners at the last AGM. Provision should have been made in these estimates for future maintenance and if insufficient provision was made to attend to the leaks this may preclude the trustees from introducing a special levy. Under the circumstances it may be adviseable to convene a meeting of owners to establish the way forward in this regard.

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