## What does PQ mean in sectional title?

PARTICIPATION QUOTA (PQ) It is calculated by dividing the floor area of a section by the sum of the floor areas of all the sections in the scheme, (i.e. the larger the section, the larger the PQ and vice versa).

What does a participation quota determine?

The participation quota determines the owner’s undivided share of the common property, and the value thereof. Before investing in sectional title property, it is important to understand how levies are calculated according to their participation quota.

### How is levy amount calculated?

2. (Answer ÷ total PQ of Scheme) ÷ 12 = Monthly Levy.

What are levies in South Africa?

Levies cover everything on what is known as common property. Anything outside of your unit is part of that common property, unless you have exclusive usage of some part of it, like your garden, says independent real estate professional Sarel Ueckermann.

#### How are levies calculated in a sectional title development?

The calculation of levies is done by using the formula of the participation quota of each unit in a sectional title scheme, in order to determine their contribution towards the repair, upkeep, management, control and administration of the common property.

What is included in sectional title levies?

What are levies?

• General maintenance of the common property, such as roads, gardens and swimming pools.
• Cleaning of the common property.
• Security, including infrastructure, systems and personnel.
• The management fee for the managing agent.

## What is percentage quota?

Quota attainment measures a salesperson’s total sales, as a percentage of their quota for that period. It is a measure of how close they were to reaching their goal for that particular period. Typically, quota attainment is measured either monthly, quarterly, or annually and is tied to a compensation plan.

Can one negotiate levies?

Once a body corporate has approved their administrative budget, the levies become due and payable. Owners do not have the option to negotiate how or when they want to pay their levies. Payment of levies are due on the 1st of the month.

### What happens if you don’t pay levies?

“This means that sectional title and estate homeowners who don’t pay their levies are basically freeloading off others in their scheme who are paying for the shared services and towards the shared reserve fund,” Schaefer explains.

Is water included in levies?

What costs does the Levy cover? The Levy covers necessary expenses incurred by the Body Corporate in the administration, upkeep, running and repair of the common property, such as: Rates, Taxes, Gas, Water and Electricity for the Common Property.

#### Who pays for what in a sectional title?

Shared walls between the sections, the foundations as well as windows and doors in the exterior walls of sections are part of the section and part of the common property and hence the shared responsibility of the owner and the body corporate to share the maintenance and repair costs equally.

What is the difference between rates and levies?

The main difference between rates and levies is what they don’t cover, and so falls under your responsibility. If you buy a sectional title property, after paying your levy each month you only need to worry about repairs and maintenance to your own unit on the inside.

## What are the management rules for sectional titles?

The Management Rules are contained in Annexure 8 of the Sectional Titles Act. They are prescribed for all body corporates and they can only be changed by a unanimous decision by the body corporate.

Does the Sectional Titles Act provide for alternative methods of levies?

“It is at that stage that they usually start looking into alternative methods of calculating levies, and the Sectional Titles Act does in fact provide for this, although not on an ad hoc basis.”

### What happens if a sectional title scheme is fined?

Sectional title schemes rely heavily on its members to ensure the effective functioning and operation of the scheme. While often not the first port of call, should other avenues have already been explored, there are situations in which a member of the sectional title scheme may be fined for contravening management or conduct rules.

Can a developer assign values to sectional titles?

What the Act says, Schaefer notes, is that at the time of building, the developer of a sectional title scheme may assign values to each section that differ from the actual PQs.