How to keep the EUA but stop having to pay an EUA levy?

One of the new owners in a scheme found that they have a registered exclusive use area (EUA) and there is an EUA levy attached to this area. They would like to rather take responsibility for maintaining the area themselves and not have to pay the EUA levy. How can this be achieved?

First of all – having a registered EUA means that it is an EUA created in terms of the sectional plans.  This is a registered real right.

The STSM Act states that the Body Corporate is responsible for maintenance of an EUA.

Section 3. (1) A body corporate must perform the functions entrusted to it by or under this Act or the rules, and such functions include—

(l) to maintain all the common property and to keep it in a state of good and serviceable repair;

Section 13. (1) An owner must—

(c)        repair and maintain his or her section in a state of good repair and, in respect of an exclusive use area, keep it in a clean and neat condition;

 

The STSM Act states that should any owners have registered EUAs they must pay an EUA contribution (what we call an EUA levy) unless the Rules state that they are responsible for maintenance of the area.

 

Section 3. (1) A body corporate must perform the functions entrusted to it by or under this Act or the rules, and such functions include—

(c) to require the owners, whenever necessary, to make contributions to such funds: Provided that the body corporate must require the owners of sections entitled to the right to the exclusive use of a part or parts of the common property, whether or not such right is registered or conferred by rules, to make such additional contribution to the funds as is estimated necessary to defray the costs of rates and taxes, insurance and maintenance in respect of any such part or parts, including the provision of electricity and water, unless in terms of the rules the owners concerned are responsible for such costs;

If the owner want to keep the area as an EUA but want to stop paying the EUA levy then the following steps need to be taken:

  • Cancel the registered EUA (special resolution and amend the sectional plan)
  • Create a new EUA ito the Rules (Conduct rules is easiest – special resolution; or Management rules – unanimous resolution)
  • In the rules make the owner responsible for maintenance of the area – then they do not have to pay an EUA levy as well