One of our complexes feel that working on PQs to calculate the levies are not the right way to go as some of the sections are parkings/garages. They want to know how they can amend this in order to charge a lower levy on the parking/garage sections.

The Sectional Titles  Act states the following about participation quotas:

Section 32 Participation quotas

(1) Subject to the provisions of section 48, in the case of a scheme for residential purposes only as defined in any applicable operative town planning scheme, statutory plan or conditions subject to which a development was approved in terms of any law, the participation quota of a section shall be a percentage expressed to four decimal places, and arrived at by dividing the floor area, correct to the nearest square metre, of the section by the floor area, correct to the nearest square metre, of all the sections in the building or buildings comprised in the scheme. 

(5) The specification in the schedule to a sectional plan of the quota of each section and of the total of the quotas of all the sections in the building or buildings comprised in a scheme, shall for all purposes be deemed to be correct in the absence of proof to the contrary. 

So the participation quotas that are shown on the sectional plans are to be used.

In the STSM Act it then states that all levies (and votes) are to be calculated by using these participation quotas (Section 11 (1))

The STSM Act also makes provision for the scheme (or the Developer when opening the sectional title register) to change from working on the PQs of the sectional plans to working on nominated values.  A special resolution is needed for this and written permission from all owners adversely affected by this change.

The Trustees of the complex in our Question of the Week must therefor draw up a proposed list of nominated values for each section (to be used in stead of the PQs on the plans) and then get this approved by the owners (special resolution and written permission from all owners adversely affected)

Quote from the STSM Act:
Section 11. (1) Subject to subsection (2), the quota of a section must determine—

  • the value of the vote of the owner of the section, in any case where the vote is to be reckoned in value;
  • the undivided share in the common property of the owner of the section; and
  • subject to section 3(1)(b), the proportion in which the owner of the section must make contributions for the purposes of section 3(1)(a) or may in terms of section 14(1) be held liable for the payment of a judgement debt of the body corporate of which he or she is a member.

(2) (a) Subject to section 3(1)(b), the developer may, when submitting an application for the opening of a sectional title register in terms of the Sectional Titles Act, or the members of the body corporate may by special resolution, make rules under section 10 by which a different value is attached to the vote of the owner of any section, or the liability of the owner of any section to make contribution for the purposes of section 3(1)(a) or 14(1) is modified.

(b) Where an owner is adversely affected by such a decision of the body corporate, his or her prior written consent must be obtained.

(c) The member of the body corporate may not make rules by which a different value is attached to the vote or liability of the owner of any section as contemplated in paragraph (a), until such time as there are owners, other than the developer, of at least 30 per cent of the units in the scheme.

(d) Where the developer alienates a unit before the opening of a sectional title register in terms of the Sectional Titles Act, the developer may not make rules by which a different value is attached to the vote or liability of the owner of any section as contemplated in paragraph (a), unless the developer has disclosed such intention in all deeds of alienation.