Ricochet News

New provisions: who pays special levies - the buyer or the seller?

By Goldberg & de Villiers - Dec 7, 2016
New provisions: who pays special levies - the buyer or the seller?

Although the Sectional Titles Scheme Management Act, (the Act), makes provision for a reserve fund, special levies may still be imposed by the Trustees. It will usually be necessary to raise a special levy to cover unforeseen and emergency expenses not budgeted for as part of the usual maintenance expenses of the scheme.

The Act provides that a special levy becomes due on the passing of a resolution in this regard by the trustees and may be recovered from the persons who were owners of units at the time when such resolution was passed.

The Act however adds that upon the change of ownership of a unit the successor in title becomes liable for the pro-rata payment of such contributions from the date of change of such ownership. The implication of this is that when special levies are not paid as a lump sum but in monthly instalments a new owner will become liable for the pro rata instalments from the date of registration.

Make sure that you obtain the relevant information from the seller or agent and that the deed of sale addresses these issues.

Contact Bardine Hall and her professional team on Tel 041 5019800 for assistance on your property related matters or visit www.goldbergdevilliers.co.za