When buying into a sectional title scheme (complex/estate) always ask for a copy of the latest levy statement, prior to making an offer even the financials for the complex, where possible.

Levies pay for the administration and management of common property, services costs such as water, as well as general maintenance (incl gardening services), complex security, insurance, staff salaries, building projects (incl painting) and service contractor fees.

Sometimes a special levy may be raised to pay for once of large projects.

Levies are calculated using a participation quota (the size of your unit relative to the size of the complex).

Recently the Community Schemes Ombud Service (CSOS) levy has been added in terms of the CSOS Act. This is meant to fund the operations of the CSOS.

Levies are a statutory requirement sectional title owners, in terms of the Sectional Titles Act. So there is no escaping them.

The body corporate has a duty to collect these is usually through a managing agent.

Attending AGMs where the levy and associated management costs are decided is therefore vitally important.

Note: having sight of the financials is important so that you have a fair understanding of whether or not the complex has been managed well financially. Buying into a ‘sinking ship’ can be costly.

Note: some estates may be freehold and a an owners association levy will be payable.

@sibekoziyanda got my juices running on this