A Levy is defined as "an additional amount of money usually paid as a tax".
An owner of a sectional title must be aware of the implications surrounding monthly levy payments. One should understand what the levy includes, and how much it is, also the impact of special levies in the complex, and the contributions for any exclusive use areas which may or may not be excluded from the monthly levy. Every purchaser who buys a sectional title unit must understand that there will be a monthly levy to pay.
What is included in the levy?
* Cost of repair, control, upkeep, management and administration of common property;
* Administrative expenses of the body corporate -Auditing fees -Managing agent fees;
* Charges for amenities and services, water and sewerage (unless charged separately);
* Insurance premiums;
* Staff salaries, UIF, PAYE, pension, RSC Levies;
* Electricity in respect of common property;
* Lift maintenance ( if applicable);
* Security (if applicable)
* Gas-fired boiler
* Geyser ( if applicable)
Rates and Taxes used to be included in the levy, however since the Property Rates Act came into effect in July 2004, each owner of a unit will be directly responsible to the Council for rates and taxes.