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Calculation of levy changed

By odette smith on Mon, 05 Mar 2012 at 16:04

I found out that at an AGM, where I was not present, it was suggested that the manner in which the levy for each unit is calculated be changed. Instead of it being based on square meterage it is now based on municipal values. Since the values were the same for each unit, each unit now pays the same levy. This matter was not put on the agenda. Instead the agenda simply said annual levy increase will be discussed. Also, the minutes do not accurately reflect this change. Unfortunately it happend over a year ago and I only found this out now. What can I do?

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RE: Calculation of levy changed

John Yates replied on Mon, 05 Mar 2012 at 16:56

Follow.

RE: Calculation of levy changed

Carel Basson replied on Tue, 06 Mar 2012 at 09:09

Follow

RE: Calculation of levy changed

Gerhard Bezuidenhout replied on Tue, 06 Mar 2012 at 16:36

Hi, Odette
You fail to mention if the PQ's are equal.
If they were, the new proposed method will have the same result. And if they were, why would anyone want to change the apportionment?

Which leads to a assumption that the PQ's are NOT equal, hence the suggestion.
HOWEVER, be aware that the method to apportion contributions are contained in the Management rules and shall only be amended by unanimous resolution to this effect....Show More

RE: Calculation of levy changed

Myburgh Brink replied on Tue, 06 Mar 2012 at 23:03

§32 (4) states: "… the members of the body corporate may by SPECIAL RESOLUTION, make rules under section 35 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) is modified …"

Levies are NOT an agenda item for the AGM (PMR 56) only the estimates are approved either without or with amendments. Once this has been done then the trustees have to determine the new year's contributions i.t.o. PMR 31 and notify the members accordingly. This rule also refers to §32 (4) for the method to be used in the calculation and i.t.o. §37 (2) the contributions only become legally enforceable once a trustees' resolution has been passed. ...Show More

RE: Calculation of levy changed

Anne Granada replied on Wed, 07 Mar 2012 at 09:47

It has been found that the participation quota in our complex has been incorrect for the last 10 years. the trustees knew about this as they are the ones who enlarged their units.the units are all 120square meters, and they each added 24 square meters. OK so we are stupid, we did not pick this up until 2 owners started investigating. For how long back can we ask them to pay the correct levies? They were also clearly in breach of their fiduciary duties and deliberately set about to deceive the other owners. Yes, AGM's were hel annually, but to mislead the other owners pertinent and vital information was not forthcoming. Do you suggest we lay a charge of fraud?

RE: Calculation of levy changed

Anne Granada replied on Fri, 16 Mar 2012 at 21:28

In our case the charges were also incorrect. Only the levies were charged. The trustees conveniently forgot to charge rent for the parts of the property / land which some of the owners were "renting" - illegally - without anybody's permission - purely to enrich themselves. so how to we collect this rent now? for how many years can we go back? the other owners paid the water, teh gardener, etc to enrich the trustees and their gardens.

RE: Calculation of levy changed

odette smith replied on Mon, 02 Apr 2012 at 10:27

Hi All,

Thank you for the replies. They have been most useful. I have in the meantime chatted to other residents and seems no one but the trustees know that the levy calculation has changed. I doubt that the decision was even made at an AGM....Show More

RE: Calculation of levy changed

Anne Granada replied on Thu, 12 Apr 2012 at 15:48

If the levies were calculated incorrectly, not taking into addcount the addition / enlargement of units, for how many years can we go back to claim corrections?
If it was a PTY LTD , I understand that we can go back 10 or even 20 years.
If the trustees maliciously Loaded the levies of other owners, to enrich themselves - the trustees - what can we do at this stage? Obviously it is a breach of fiduciary duty.

RE: RE: Calculation of levy changed

Gerhard Bezuidenhout replied on Fri, 13 Apr 2012 at 15:51

IMO you can go back as far back as you have records for. Take into account that you cannot implement a recovery on a unit for the period BEFORE it has been sold.
You also have to attend to the re-measure of the sections and due registration as per the Act

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