A Simple Formula for Sectional Title Levies
Category Newsletter: Property News and Views
Owners of units in sectional title schemes pay monthly levies towards the upkeep and management of the scheme. The levies cover the anticipated costs of the running of the scheme such as insurance, management agent fees, audit fees, security and maintenance costs.
The scheme’s total annual budget, as determined at the scheme’s annual general meeting, is calculated and then divided into 12 monthly instalments, collectively paid by the individual owners. Each owner’s payment is calculated with reference to the owner’s participation quota, being the floor area of a given section in relation to the total floor area of all the sections in the scheme.
Here are the simple formulas:
Total annual budget / 12 = monthly budget
Owner’s contribution = Square meters of owner’s section / Total square meters of building floor space x monthly budget
Author: Smith Tabata Buchanan Boyes
