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General and Special Levies in Sectional Title Schemes

 
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General levies are raised by the Body Corporate at an annual general meeting  (AGM) held by the owners of units within a Sectional Title scheme.

 

General levies are based on the annual budget and are approved by the Body Corporate and are applicable for the following financial year.


Special levies are raised at the discretion of the trustees (trustees are elected by the body corporate at its first meeting and at every subsequent Annual General Meeting (AGM).


Special levies can cause disputes between individual owners and the Body Corporate.


Prescribed Management Rules (PMR) 31(4) in terms of the Sectional Titles Act 95 of 1986 gave trustees the power to raise special levies to provide for unforeseen expenses, as long as the following requirements were met:

  1. the expense for which the special levy was raised was necessary; and
  2. the expense had not have been included in the budget approved by the owners at the last AGM.

The trustees would decide whether to make the special levy payable in one lump sum or in installments, as they saw fit.

 

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