I own a section in a sectional title scheme that is a flat. I also own a garage that is a section on its own and a storeroom that is a section on its own. How does the calculation of CSOS levies work on this?

In terms of the CSOS Act the following applies:

  • All community schemes must be registered with CSOS
  • All units in the community scheme must pay a monthly CSOS levy
  • The CSOS levies must be paid over to CSOS quarterly

The formula to calculate CSOS levies is as follows:

(The monthly levy of the unit minus R500) times 2% (with a maximum of R40 per unit per month)

This only applies to the admin fund levy, not the reserve fund levy, special levies, or EUA levies.

Some people add the levies together for all sections and then calculate the CSOS levy and just pay over one CSOS levy per owner.  This is not correct. And the owner might be disadvantaged by this as well.

You need to take each section separately and apply the above formula.  So if the levy is R500 or below on that specific section there is no CSOS levy payable on that section.

Remember the first R500 is exempt from CSOS levy calculations:

Section 1- garage – levy is R500 – this equals to no CSOS levy on this section

Section 2 – storeroom – levy is R510 – this equals to CSOS levy only on the R10 of this section

Section 3 – flat – levy is R4000 – this equals to CSOS levy only on the R3500 (to a maximum of R40)

Quote from the STSM Act:

PCR 4(1) The owner or occupier of a section must not, without the trustees’ written consent, mark, paint, drive nails, screws or other objects into, or otherwise damage or deface a structure that forms part of the common property.

Some people incorrectly think that a “non-luxurious” improvement is a special resolution straight off – it is not – you have to follow this procedure.

The same procedures apply for the removal of an improvement from the common property.  For instance, where the BC has a swimming pool and it is proposed by the Trustees to rather fill up and close the pool.  It will first need to be determined if the installation of the pool was a “luxurious” or “non-luxurious” improvement in the first place.  That will determine what resolution will be needed to fill up the pool.