When buying a sectional title unit – flat or townhouse – you become a member of what is called the body corporate.
Essentially, the body corporate is made up of all the people who own a unit in the scheme.
The trustees who are elected by all the owners (body corporate) represent the other owners in dealings between the body corporate as a building and the outside world.
One of the jobs of the body corporate is to have a budget for running the building from which each owner pays a monthly levy, which together collects enough money to do all the things necessary for the running of the building – for example, pay cleaners’ wages, take out insurance on the building, repair and maintain the outside of the building or tenancy in common.
What the levy does not cover is your rates and taxes.
Rates are what you, as a property owner, pay the municipality for their services – roads, clinics and the like.
Included on your rates bill are your charges for refuse removal and sewage collection.
Rates do not form part of your levy bill.
It has to be paid separately to the municipality.
It is very important that you do pay it, because if you don’t, there are penalties and interest to be paid plus legal fees if they hand you over for your unpaid bill.
Make sure that municipality has your correct address.
For example, if you are living in the Mangaung Metro, you can write to the municipality at enquiry@mangaung.co.za
Tell them your flat unit number and not your door number (your sectional title number may be different) and the name of your building.
They will then send you your bill directly to you to pay.
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant.
