An ongoing question being asked by people who live in sectional title schemes is when the unit is sold who is responsible for the special levy if it is called for during the sale process, says Lanice Steward, managing director of Knight Frank Anne Porter.
Sectional Title Act 37 (2A) says that when the property is passed on to the new owner if a special levy is due then whoever the current owner is at the time of the resolution being passed shall be responsible for the payment.
If someone has purchased a sectional title unit and at some stage between the sale and transfer takes place a special levy is called for, the current owner will have to pay this. So, if the transfer happens just before the special levy resolution is passed, you as the new owner will have to pay it.
“It is important to check the financials when looking to buy into a sectional title scheme. If there is a chance of a special levy needing to be raised in the year ahead, it could become problematic for you as the buyer of the unit. No one will want to pay over and above what should be paid, especially if you’ve just bought a new home as there are so many costs involved here,” said Steward.
“All buildings will need ongoing maintenance and a building with a healthy balance sheet and a slightly higher levy is more attractive than one with lower levies. You could find yourself paying in multiples of your usual monthly levy down the line,” she warned.
Article from: www.anneporter.co.za
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