Page 68 - Q&A 2019/2020

When do the levies of a sectional owner
increase after an extension of their unit?

Cleopatra Mukhari
September 2019

“I live in a sectional title scheme and pay levies according to the participation
quota of my unit. However, a number of unit owners have recently extended
their units and although the body corporate has approved such extensions,
I know the sectional plans have not been amended. So now although their
units are larger the owners are still paying the same levies. When must the
body corporate increase their levies?”
In terms of the Sectional Titles Schemes Management Act 8 of 2011 a body
corporate has to perform certain functions. One of these functions is to ensure
that reasonably sufficient funds are available for the maintenance, repair and
management of the common property.
Another function is to require owners of the sectional titles, whenever necessary,
to make contributions to the fund by means of levy payments. Such contributions Property
are determined by requiring the payment of levies from the owners in the
sectional title scheme in proportion to the quotas of their respective sections,
termed their participation quota. Accordingly, if a unit is extended, this should
lead to an amendment of that unit’s participation quota and consequently the
levy amount to be paid by the unit owner.
The question though is when does such an adjusted levy become payable. In
a recent Western Cape High Court case, the court found that such increased
levies will only apply after the registration of the sectional plans of extension at
the Deeds Office, and specifically only from the date of registration thereof.
Accordingly, even if units have been extended and the owners of those units
should technically be paying an increased levy, such increased levies will only
be enforceable from the date of registration of the extensions in the Deeds Office.
However, nothing prohibits the body corporate from entering into agreements
with the owners of the extended units in order to increase their levies before the
date of registration of the sectional plans of extension.

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