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Levies and Special Levies
Hi, can the trustees increase your annual levy by 30%? They are also insisting that i pay my Special Levy{which amounts over ten thousend rand} off over a period of three months. otherwise they will charge interest!!!
surely they can't force owners to pay these amounts once off?
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RE: Levies and Special Levies
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RE: Levies and Special Levies
H, Graham. To answer your first question: the trustees may only increase the levies for the period between the end of the financial year, and the next AGM; and then by no more than 10% (see PMR 32(4)A). Other than this, they have no rights to increase levies; except after an AGM, when the BC has approved the new Estimates of Income and Expenditure. There is no legal limit on this increase (which could be and icnrease of 30%), provided that the BC has approved the estimates on which it is based.
In terms of PMR 31(4) the trustees may make a special levy payable in one sum, or by such instalments and at such times as they think fit. If the members of the BC consider the terms of payment too onerous, they always have the option of calling a SGM (by written request of 25% by value of owners) to give the Trustees directions to vary the payment option (or whatever).
RE: Levies and Special Levies
Hi
As I said in my other reply the contributions are determined as per the approved estimates. So if your estimates increased from one year to the next by ±30% then that would be your increase, but the trustees' only authority to increase contributions is in PMR 31 (4A) and this is a maximum of 10% (unless the rule has been amended) between the year end and the AGM.
As for the special levy the trustees are authorised to determine the method of payment (PMR 31 (4)): "… such levies and contributions may be made payable in one sum or by such instalments and at such time or times as the trustees shall think fit."...Show More
The references to the Act and Rules can be found in the Library section.
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