Body corporates have budgets for running their buildings or complexes and a levy is charged to each owner as their share of running the place.
Rates and taxes, on the other hand, are a separate cost to the owner collected directly by the municipality – these have nothing to do with your body corporate.
Some owners may remember when rates and taxes were paid by the body corporate and formed part of the levy but that has not been the case for at least 10 years.
As a new owner, it’s your responsibility to contact the municipality and give them your contact details.
In Bloemfontein for example, this is done at the Bram Fischer Building.
Just pop into the banking hall and they will help you.
Alternatively, you may email them on enquiry@mangaung.co.za.
Don’t leave it because they will charge you penalties and will hand you over if you are behind.
The same applies to electricity directly connected to Centlec and individual metro water meters.
It’s unfortunate that many estate agents do not discuss the costs involved with owning a sectional title property.
It would be helpful if they did as many buyers buy to their financial limit and don’t have the extra to pay for these items.
Buyers should also remember that levies are normally increased on an annual basis by five to 15 percent in a well-run scheme but much more in one that is badly run.
New buyers should always ask for a copy of the last approved annual financial report and have a knowledgeable person critique it for them.
You also need to ask for the last completed monthly account.
It should never be more than 35 days old – March should be available by mid-May.
It is especially important to see how many owners are in arrears at that time, especially by more than two months.
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.