HISA SEPT 2015 low b

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Housing
Many feel that they have the
right to use a certain area
but are not happy to pay the
extra cost or the cost of the mainte-
nance of this area.
Sectional title property specialist,
Michael Bauer, says that it makes
sense to charge for the use of the
area, as this area is reserved for the
use of owners who wish to use it
exclusively for events or gatherings
contribute to its upkeep. If an owner
owned the extra portion, the owner’s
levy would be higher and the owner
would be responsible for its upkeep
and maintenance.
If it is a garden, for instance, the
costs of maintaining the garden, e.g.
replanting of plants, composting,
weed removal, etc., would need to
be paid for. If it is a parking area and
the road surface needs redoing or if a
balcony is leaking and needs to be re-
paired, the costs of the maintenance
need to be borne by someone. The
Sectional Titles Act is clear that the
users of the exclusive use area are
responsible for themaintenance and
repair of it.
The Act says that an additional
levy for exclusive use areas must be
charged, but usually in sectional title
schemes the ordinary and special lev-
ies are based on a participation quota
and should already be covering all the
running costs of the scheme.
“There might be an over-recovery
of money from the collection of ad-
ditional levies from the owners,” said
Bauer. “This surplusmoney collected
for the exclusive use areas should
then be allocated to reducing the
scheme’s levies.”
Problems usually arise when a repair
is needed and is not being done time-
ously, for example, a leaky enclosed
balcony. This, said Bauer, is often a
tricky situation as the body corpo-
rate can compel the owner to pay
for the maintenance or repair of an
exclusive use area. If the owner does
not comply, the body corporate can
give 30 days’ notice and if the owner
doesn’t act the body corporate can
then arrange for the job to be done
at the owner’s expense, according
to Prescribed Management Rule 70.
The other problem that the body
corporate might encounter is access to
the exclusive use area. If it is a balcony
for example, the owner will have to give
workmen and the managing agent ac-
cess via his apartment.
“It is recommended that the ad-
ditional levy for the exclusive use of
an area be standardised within the
scheme.”
Bauer says, “Trustees must budget
correctly andonly raise levies according
to the actual expenses of the scheme.
If there is an over-recovery, the regular
monthly levies should be reduced by
the proportionate amount.” ■
Sectional title exclusive use areas
The right to the exclusive use of a common area in a sectional
title development and the rental charged for that use is often
raised by owners.