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Back Levies
I bought 12/2008 - Inaugural meeting will only be held in 09/2010. My purchase agreement stated that my levies were including the rates. My unit was valued, I started paying the rates myself and the MA refunded me 6 months (account was backdated), being the "rates portion" and I got a letter stating that my levies would be reduced on my account accordingly the following month. They even sent me a schedule which showed how the "rates portion" was calculated. Then the MA changed their minds and said "no more"....and they have charged me in full since then.
Now, when they decide to arrange the first meeting, I am told this will be dealt with in the meeting. I feel that I am 1 vote to the developers 9 (11 units)and he is never going to give me the credit on my account. The MA is employed by his company and the levies are paid into his trust. I don't stand a chance.
Any thoughts on this will be greatly appreciated.
Thanks
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RE: Back Levies
Hi, Theresa. There may be more in this than meets the eye! In terms of the Municipal Property Rates Act, rates for sectional titles properties are paid by the owners of sections and not by the BC.
RE: Back Levies
Please confirm the following at first
1.Date of registration in your name at Deeds Office.Up to this date you would have been liable for occupational interest as per your sales contract....Show More
2.On date of registration in your name you should have registered with your council as an owner and received the rates account direwctly from the council.
3.You can declare a dispute even if you are one owner but this can be expensive.
4.The Inaugaral General Meeting should have taken place within 60 days of the first unit registered.See PMR 50 AND 46 to 49.
RE: Back Levies
According to my information the charge for rates to a single unit is only implemented after the developer has lodged a certificate that he has completed the intended development. (How else would the local authority be empowered to determine which portion to allocate to any specific unit, as the PQ - as represented by measurement of the units - determines the calculation of the value (land and buildings) to be assessed per unit.
Therefor it is higly probable that the levies would still include a rates protion.
RE: RE: Back Levies
The owner is responsible for rates from the date the unit is registered in the name of the owner.The onus is on the owner to register at the council.The rates is determined by the council as per the market value of the unit as per date on the valuation role approved.The P.Q. does not determine the rates and taxes.
RE: RE: RE: Back Levies
To the contrary, Swazi. In most complexes, the municipal valuators seem to have done no more than access sectional title plans and allocate rates in terms of PQ.
RE: RE: RE: RE: Back Levies
Exactly. They have the most recent improvement figures for each unit and accumulates the project value until all units are handed over, apply the PQ - and voila! ready for assessment.
RE: RE: RE: RE: RE: Back Levies
My unit was only valued by the municipality 7 months after purchase. So up to that point the rates were included in my levy because the BC was paying. Thereafter I got a letter stating my levy would reduce pro rata in the future which has never happened. So I have had to continue paying the amount that was on my purchase agreement which stated "levy + rates".
How do I get my levy account adjusted when they just refuse?
RE: Back Levies
Hi
In terms of the Municipal Rates Act 2004 (§'s 46 and 47) all rateable properties are valued at market value – size has absolutely nothing to do with it.
RE: RE: Back Levies
Abundant proof to the contrary is available, Myburgh, merely by perusing the municipal valuation roll per scheme. You will find that, in most instances, size/PQ has EVERYTHING to do with the so-called "market value" determining rates - making unregistered extensions a bone of contention in this regard too. You will also note that the per sq metre rating of sectional title properties generally far exceeds that of freehold properties of triple or more the actual (as opposed to rated) market value. One also has to query "market-related" valuations that exceed the actual selling price of a property a year ago by 60% - simply because of the impact of the higher selling prices of a few units during the boom 3 years ago on PQ-based valuations. Of course this conflicts with the principle you cite - and it is on that very basis that I personally have lodged an objection to the municipal valuation of my unit. This is the kind of issue, however, which calls for a general outcry from sectional title owners throughout the country.
RE: Back Levies
To respond to your query, Theresa - In this case, given the quoted wording of your purchase agreement, a lawyer's letter may resolve your problem and be worth the cost. The system changed for all sectional title owners, however, with the individual rating of units, and in many instances the rates portion was not in fact deducted from the levies, with conflicting opinions from the top legal experts in the sectional title field as to whether it should or should not be. In essence, Prof Paddock argued for fair practice - while Tertius Maree argued that there was no legal necessity for that, and no legal basis anyway for reducing levies after approval of the budget. So take your pick ...
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