Levies in sectional title schemes will probably have to increase 10% to 20% if schemes are to meet the minimum amount they must stash away in their reserve funds for the long-term maintenance of their buildings.This is the view of Andrew Schaefer, MD of national property managers Trafalgar, who estimates that less than 10% of buildings comply with the Sectional Title Schemes Management Act, which came into effect on October 7 2016. The legislation, among other things, addresses the common practice of schemes delaying if the body corporate does not have the funds.But owners of sectional title units are whingeing about the financial implications.Anton Kelly, a sectional title specialist and teacher at sectional title specialist firm Paddocks, who also manages an online forum for the firm, says that all the issues raised by the members on the forum about the legislation concern money. According to Kelly, prior to October last year, schemes operated their finances out of a sing...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.