A Paddocks Sectional Title Lifestyle Blog
Special levies are the one thing we as sectional title property owners dread more than anything. We understand that we have to pay our general/ordinary levies and we budget for that, but special levies can hit us with no warning whatsoever and none of us like an unexpected call on our pockets that we have not budgeted for!
So when can special levies be legally raised?
Many owners mistakenly believe that the trustees are not entitled to raise special levies without first consulting them.
Sorry to be the bearer of bad news, but they can!
The Sectional Titles Act and Prescribed Rules allow trustees to raise special levies without any prior consultation with owners provided the additional expense is:
1) Necessary; and
In terms of the ‘necessary’ requirement the expense must not be for something that would be ‘nice to have’. ‘Necessary’ implies a sense of urgency. If the expense cannot wait to be covered by general levies collected for the next financial year then it may be necessary to raise a special levy for it, pronto!
If the expense can wait until the next financial year, then there is no urgency and the trustees should include it in the next annual budget that will be presented to the owners at the next AGM. This way, if the budget is accepted, the expense will form part of the general levies that each owner pays for the next financial year.
The expense for which the special levy is raised also must not be included in the budget that was approved at the last AGM. Special levies are meant to be for items that pop up unexpectedly throughout the year and not for ordinary and foreseeable general maintenance and repair items already included in the budget and being paid for out of the general levy fund.
Do you have any special levy stories to share with us? Comment below.
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