STO Forums

Search

Type your search criteria above and click Search to search the forums.

To see if someone has already answered a query similar to yours, click the Search button above and search for terms related to your question.

Special levy on garage same as on unit?

By Sue Wylie on Thu, 01 Mar 2012 at 23:53

A special levy of over R400 000 has been raised at our complex due to previous mismanagement and neglect of maintenance, along with a 30% increase in levies. My large garage (32m sq), has attracted the same proportion of the special levy, is that legal/fair seeing that there is virtually no maintenance at all required/done on the garage? Do I have any recourse to object, the other owners are not to concerned as mine is the largest, and most don't have garages?

Replies

You must login to post a reply.

RE: Special levy on garage same as on unit?

Peter Vickery replied on Fri, 02 Mar 2012 at 07:57

Hi Sue - You need to look at the Participation Quotas (PQ) in your Management Rules and the Rules themselves. If the garages carry the full quota then you should be paying the same levies per sq.m on the garage as you do for your section - and the same would also apply to the Special Levy.
In reality the garages should only carry a part quota and this is probably an oversight by the developer?
But correcting this is easier said than done. You need to look at Sec 32 of the Act which will tell you that the PQ's may be altered by a Special Resolution of the members, as well as the written consent of those adversely affected - not easy!
You also need to bear in mind that if the PQ's are altered - you need to file the amendments with the Deeds Office.

Regards...Show More

RE: RE: Special levy on garage same as on unit?

John Yates replied on Fri, 02 Mar 2012 at 08:13

You should check on the Sectional plan of your scheme in order to establish exactly where your garage fits in. For example is it part of your section or is it shown as an exclusive use area. If it is part of your section then this would be part of your participation quota (PQ). This would determine your contribution to the special levy.

RE: RE: RE: Special levy on garage same as on unit?

Swazi Coetzee replied on Fri, 02 Mar 2012 at 09:20

rEAD sECTION 34(2) of the S.T.Act

RE: RE: RE: RE: Special levy on garage same as on unit?

Sandie Glee replied on Sun, 04 Mar 2012 at 09:58

I'm interested in this for similar reasons, can anyone explain on what basis one would justify proposing lower levies on garages?

RE: RE: RE: RE: RE: Special levy on garage same as on unit?

Anne Greening replied on Sun, 04 Mar 2012 at 11:28

Hi, Sandie. I can't think of any reason.

RE: Special levy on garage same as on unit?

Peter Vickery replied on Sun, 04 Mar 2012 at 16:04

Hi All - the reason that garages could be at a lower contribution than the sections, is normally because they're finished to a lower standard as a residential section. No ceilings, no water supply/plumbing,fewer windows, doors etc.
I know of a scheme that has 2 tandem garages, which are separate sections and have their own PQ. Because of the width vs length and general layout, their sq.m/PQ is greater than the residential sections and they bear a disproportionate portion of the levy.
This has caused major problems within the scheme because of the cross subsidy effect, and which can't be amicably resolved, because those who're getting the benefit, are very reluctant to give it up. If the PQ were amended the levies of the sections would go up, and the garages would go down.

Regards...Show More

RE: Special levy on garage same as on unit?

Sue Wylie replied on Sun, 04 Mar 2012 at 18:43

Sadly, this one is not going to fly - there will be no buy in from any of those required to vote in my favour - the PQ? is the same for the living area and the garage, and no one in their right mind is going to support a resolution that sees me pay less levies and special levies and them pay more! I just have to accept the situation!

RE: Special levy on garage same as on unit?

Myburgh Brink replied on Sun, 04 Mar 2012 at 23:02

All contributions have to get calculated either on the PQ value of the section or another value determined i.t.o. §32 (4). Sue, you say your garage and flat special levy is the same. Do you mean the amounts are equal or the amount/m² is the same? If it is the former it means your flat and garage are the same size, which is highly unlikely and not correctly calculated. If it is the latter then it is correct.

The only way the "values" of non-residential sections, such as garages, can be amended without a fight is if the developer does it at the outset i.t.o. §32 (4). ...Show More

RE: RE: Special levy on garage same as on unit?

Peter Vickery replied on Mon, 05 Mar 2012 at 09:01

Hi All - Myburgh is correct. Many Sectional Title issues are a direct result of the developer not applying his/her mind, at the outset. These issues then raise their heads at some point in the future
and can become major sticking points that the trustees have to deal with.

Regards...Show More

RE: RE: RE: Special levy on garage same as on unit?

John Yates replied on Mon, 05 Mar 2012 at 09:46

PQ's are established by a qualified land surveyor not a developer. If these PQ's have not been established the surveyor is liable interms of Section 8 of the S/T Act. Sections 5 to 7 of the S/T Act prescribes how the draft sectional plans must be prepared. Section 5(3)(g) refers particularly to the Participation Quota of each designated Section of the Scheme that is determined by the suveyor by measurement.

RE: Special levy on garage same as on unit?

Myburgh Brink replied on Mon, 05 Mar 2012 at 10:28

John
The "values" I am talking about are those mentioned in §32 (4) "… by which a different value is attached to
the vote of the owner of any section, or the liability of the owner of any section to make contributions for the purposes of section 37 (1) (a) or 47 (1) …" Such values might or might not have anything to do with size or measurement of a section but may be related to its position in the scheme or any other unique criteria relevant to the scheme. So a surveyor would have very little, if any, input in such a determination. Also the surveyor, in my opinion, does not determine the PQ, he only supplies the measurements to be used. The ofrmula for the caluculation is set out in § 32 (1).

RE: RE: Special levy on garage same as on unit?

John Yates replied on Mon, 05 Mar 2012 at 10:37

Initially the Surveyor has to establish the PQ by measurement and has to attach his calculations to the Draft Sectional Plan that he submits to the Surveyor General. Section 32(4) is only applicable after the developer has sold 30% of the Units in the Scheme. Only after 30% have been sold, may the owners (body corporate)pass a special resolution to make rules under section 35 by which a different value is attached to the vote of an owner or the liabilityof the owner to make contributions for the purposes of Section 37(1)(a)or 47(1)

RE: Special levy on garage same as on unit?

Myburgh Brink replied on Mon, 05 Mar 2012 at 11:17

The opening sentence of §32 (4) states "… the developer may, when submitting an application for the opening of a sectional title register, OR the members of the body corporate may by special resolution …" This appears to be an "either, or" situation. It is either the developer on lodging his application OR the members of the BC once 30% of sections have been sold.

1
Advertisements
Banner
Website Statistics
  • Forum Topics: 11683
  • Users: 21199