When you buy a section or unit on sectional title property, you will generally be required to pay a monthly levy. This is because you own a section in a complex or building and the rest is seen as “common property”.
This common property is seen as the responsibility of the corporate body, and they are supposed to use the monthly levy to cover the monthly expenses of the common property in which you stay.
The monthly levy should be covering the following expenses:
- Capital projects
- Maintaining existing recreation facilities
- Swimming pool – including repairs
- Maintaining gardens
- Managing agent fees
- Insurance against risks
- Water and electricity bills for the common property
- Reserve fund
- Municipal taxes
- Salaries of people that the body corporate employs
- Reserve fund
The difference between your unit and common property
Common property is the area beyond the apartment, unit or section that you purchased. This will always include entrance and exit gates, roads in the complex, parking spaces, passageways and common recreational facilities. But where are the boundaries when it comes to walls and floors and ceilings?
Confusion often arises when it comes to the technicalities of windows and walls. Read our article on the responsibilities of a unit owner for the finer detail involving the boundaries of units and what the sectional title owner and body corporate is obliged to pay for.
Source – http://www.sectionaltitlecentre.co.za/ST-and-levies.aspx