"Sewage battle to end up in court" reads a caption in a local weekly paper. Download Sewage_battle_to_end_up_in_court_Rdp_Record_29_09_2011
In this regard the Sectional Titles Act (STA), No 95 of 1986, §36(6)(c), as well as the Sectional Titles Schemes Management Act, No 8 of 2011—that would amend and repeal section 36 of the STA—§2(7)(c) reads:
2(7) The body corporate has perpetual succession and is capable of suing and of being sued in its corporate name in respect of—(c) any matter in connection with the land or building for which the body corporate is liable or for which the owners are jointly liable
It would be in the best interest of the owners collectively, or the Body Corporate of Aqua Azure (SS ?? / ????) as legal persona, that the trustees resolve the plumbing and sewage problems.
Do you as owner know for sure that all services rendered are paid up to date or do you pay your levies and don’t bother? Some 22 000 owners of some 450 sectional title schemes, most of which probably within the City of Johannesburg, relied on third and fourth parties with regard to their personal financial obligations.
In sectional title schemes everything that is not part of the individual sections is owned by the collective of owners, known as the body corporate. This collective, as legal persona, has obligations. The liquidation of Constantia Sectional Title Management (CSTM) should serve as a wake-up call for all sectional title owners. Download CSTM - Trustee Letter - Lexstar
This means that 450 schemes were without the funds, held in trust at CSTM, since 24 May 2011 and that 22 000 owners are facing financial liabilities if the body corporate concerned does not have a separate bank account in its own name to keep the reserves for maintenance.
Hard as it may seem, it is none of the concern of the local authority if funds entrusted to a third party disappears. The local authority renders services and has the right to payment. The same apply to all the other service providers of the bodies corporate affected.
Many bodies corporate rely on managing agents to take care of everything. Some bodies corporate even experience difficulty at annual general meetings (AGMs) to get trustees elected. Many owners never attend AGMs and abdicate all responsibility.
The nomination and election of trustees for each financial year is a very important matter. Owners are entrusting the financial well being of the collective property and responsibility to such individuals elected as trustees. The trustees in turn may self manage the affairs of the scheme or employ an agent to handle certain affairs entrusted to such a service provider. However, the trustees remain responsible to manage, maintain and control and in turn are accountable to the collective of owners. Michael Bauer advocates the four eyes principle contained in prescribed management rule 27.
The collective of owners annually approve the budget for the financial year ahead. This budget determines the levies payable by owners of individual sections in accordance to the participation quota (prorate portion in the scheme). The collective of owners makes the rules in according to which the trustees manage the affairs of the collective. The trustees get the annual financial statements produced and audited for tabling at the AGM.
A substantial advantage of owning property in a sectional title scheme, in contrast to free-hold property where everything belongs to the owner, is that ownership of everything other than the your personal section is shared ownership. The title deeds usually reads something to the effect of:
A unit consists of: (a) ...; and (b) an undivided share in the common property apportioned to the said section in accordance with the participation quota as endorsed on the said section plan.
This reality is possibly the biggest problem of sectional title ownership, in that owners appear to perceive that some entity other than themselves are responsible. This 'b' part of the title deed encompass membership of the body corporate of the scheme. The Sectional Titles Act (STA), No 95 of 1986, §36(1), as well as the Sectional Titles Schemes Management Act, No 8 of 2011—that would amend section 36 of the STA—§2(1) reads:
With effect from the date on which any person other than the developer becomes an owner of a unit in a scheme, there shall be deemed to be established for that scheme a body corporate of which the developer and such person are members, and any person who thereafter becomes an owner of a unit in that scheme is a member of that body corporate.
This is an important issue that Andrew Buttress fails to address in his message to the Roodepoort Record (Download Is_threre_a_loophole_in_the_law-loss_of_financial_control_Rdp_Record_22July2011). The abovementioned acts outline the responsibilities of the body corporate, which is elaborated upon in the prescribed management rules (PMRs). It is important to note that a body corporate may make use of the services of a managing agent, but is not obliged to, they owners may self administer. PMR 46 outlines what the appointment, powers and duties of a managing agent (MA) should entail. In my opinion MA is a misnomer, it should be administrative agent.
The biggest 'loophole' in sectional title is owner apathy. There are many checks and balances in place to preserve the rights of owners, but few owners show any real interest. What Constantia Sectional Title Management did is criminal, but it does not absolve the trustees and owners of schemes affected from their responsibility.
Sayed Iqbal Mohamed identifies three types or catgories of absentee owners. However, there is a fourth, the resident, self-centred kind of owner. They do not attend any body corporate meetings and demonstrate little interest, if any. However, they are quick to demand immediate attention if anything is the matter with regard to their personal convenience. It appears as if they consider the levies they pay entitle them to all the 'conveniences of non-free-hold property'; come and go as they please; and no responsibility regarding common property.
It is the duty of an owner of a section within a sectional title scheme to ensure compliance of her/his tenants with the management and conduct rules of the scheme concerned. I have done a blog post about landlords/ladies and tenants elsewhere [http://psychsoma.co.za/all_the_single_ladies/2009/10/my-rights-and-my-landlords-rights-when-renting.html#tp] detailing, among others, the importance of the lease agreement. The owner must make sure the tenant understands and adheres to the scheme's rules.
Owners of a sectional title scheme have a collective duty to maintain the common property. It is not a matter of owners could if they have the financial means. Unlike freehold property, the maintenance of the collectively owned property is a collective obligation.
Section 37(1)(a) of the Sectional Titles Act (95 of 1986) is quite clear in this regard. The prescribed management rules appended to this act, Rule 36 on the annual financial estimate, states “(1) Before every annual general meeting, the trustees shall cause to be prepared an itemised estimate of the anticipated income and expenses of the body corporate during the ensuing financial year, which estimate shall be laid before the annual general meeting for consideration in terms of rule 56 hereof. (2) The estimate of expenses referred to in sub‐rule (1) shall include a reasonable provision for contingencies and the maintenance of the common property.” (emphasis added).
The Sectional Titles Schemes Management Act, No. 8 of 2011, repeals section 37 of the Sectional Titles Act, and replaces (section 3) it with, the functions of bodies corporate, which include interalia:
The exisitng prescribed management rules are retained as per Section 10(12) of the Sectional Titles Scheme Management Act, No 8 of 2011: http://www.info.gov.za/view/DownloadFileAction?id=147401
An interesting example of ignorance appeared in the Roodepoort Record of 24 June: Download Roodepoort Record 24 June 2011 p3 Sewerage spill
The resolve a problem one first need to gather facts:
According to the City of Johannesburg Water-Services By-laws this specific problem appears to be the owner's responsibility:
The Roodepoort Record states that the Council inspected the sewer and found no blockages. The problem therefore appear to be within the drainage works of the premises. Now, who is the owner of the premises? Most certainly not the "infamous CSTM", who at most had been the managing agent of the body corporate. The owners of sections within a scheme personally own the sections and collectively own all the rest on the premises -- together all the owners form the body corporate. The body corporate are obliged by law to annually hold an AGM at which trustees for the new fianancial year are elected by the members of the body corporate (the owners of the sections comprising the scheme).
Had the Councillor known the relevant laws and regulations, he would in the first instance have asked CSTM for contact details of the current trustees. The trustees are responsible to manage, control and administer the affairs of the body corporate (the owners collectively). The sewer running into the lake is a violation by the owners collectively as a legal entity.
Apathetic owners within sectional title schemes often do not have a clue about the scheme’s finances. Boldly on the front page of the Roodepoort Record of 24 June 2011 appears the question: “Were trustees grossly remiss?" Some 450 schemes are in a pickle as result of the South Gauteng High Court’s interdict preventing Constantia Sectional Title Management from operating any further. Download Roodepoort Record 24 June 2011 Page 3
Owners annually appoint trustees and entrust the management, administration and control to an elected few. Many owners just don’t bother to attend annual general meeting and appear not to pay much attention to the annual financial audit. Having paid the monthly levy and for all services (e.g. electricity) individually consumed, does not absolve an owner.
The Sectional Titles Act, [Act No. 95 of 1986], has been amended 14 June 2011 by the enactment of the Sectional Titles Schemes Management Act, [No. 8 of 2011], Government Gazette Vol 552 No 34367. Perhaps the owners of the 450 schemes mentioned above would show some interest in how this is impacting on their ownership.
The long expected Community Schemes Ombud Service Act, [No. 9 of 2011], Government Gazette Vol 552 No 34368, further became a reality on 14 June 2011.
CSOS Act: §60. This Act is called the Community Schemes Ombud Service Act, 2011, and comes into operation on a date to be determined by the President by proclamation in the Gazette.
One way to view the investment in sectional title property is to compare it to the buying of unit trusts, in contrast to investing directly in shares or substantial freehold property, the investor buys a unit and owns property together with other investors and residential owners.
Since 2004 there has been a significant growth in demand for sectional-title office and industrial schemes. Similarly, an insatiable demand for quality inner city residential rentals has been experienced. It is believed that there will for decades be a demand for entry-level property, because of employment equity and Black Economic Empowerment drives (which includes foreigners from African countries needing to rent) in South Africa. The popularity of rental-market investment-opportunities appear to be very attractive, based on how rapidly new stock is snapped up, often pre-launch.
However, investors are recommended to tread with caution in dealing with sectional title residential, office and industrial schemes. There are a number of things to consider before making an investment, for example:
Often investors smooth the cash flow of existing schemes in that when owners that are severely in arrears sell, the arrears are recuperated from the value of the sale.
An article by Jennifer Paddock conveniently summarises what investors need to know concerning sectional title scheme ownership. Property Investor Network neatly sums up the role for a Body Corporate by these seven bullet points:
Title is a legal term that, among others refers to a formal document (a title deed) that serves as evidence of ownership.
Sectional title involves personal ownership as well as collective ownership of property—it is a bundle of rights and responsibilities. The sectional title deed stipulates which part of a joint property is personally owned and which parts are collectively owned. As sectional title owner, one has accountability towards others to share in the costs with regard to common property and also to maintain your personal property.
Sectional title further involves tolerance, a permissive attitude toward fellow owners whose opinions, practices, race, religion, nationality, etc., may differ from one's own. Tolerance entails a capacity to recognise, to respect the beliefs and the patience to tolerate the practices of others.
If you are not agreeable to collective-tolerance in title you should not buy sectional title property. If you are only interested in investment, rather consider the stock exchange. If you want freedom of responsibility, do not consider sectional title ownership.
The nature of the body corporate of a sectional title scheme excludes it from the National Credit Act (NCA). The members of a body corporate are collectively the owners and have a joint responsibility to, for example the local authority, for sewerage, refuse removal, water, etc. If one or more owners are in arrears with levy payments, such owner/s cannot submit a plea to pay off arrears over an extended period.
The purpose of the NCA is to protect consumers from unscrupulous creditors, "it follows therefore that Act does not regulate or protect a consumer from other joint consumers … worse of all, favouring one consumer above other consumers would obviously defeat the very purpose of the NCA" (Padayachee). Irresponsible, non-paying owner/s with levies in arrears; could easily render a body corporate bankrupt; the living conditions unhealthy if the local authority were for example to cut off water; rendering the sectional scheme dysfunctional and unsustainable.
Padayachee, S. (for the Body Corporate of Park Avenue Gardens, SS 221 of 1989) versus Shapiro, W (for Bricknell, V.D. owner of section 62). Magistrate's Court of the Durban District, Case No 2180/2008. Plea by Bricknell dismissed with costs on 16 February 2010 by Magistrate L Matjele.
How do the bottoms of balconies get to look like this?
Or balustrades rusted like this? If you think this is an exception, visit the blog of Woodstream Lofts and scroll through the pictures.
In contrast, the Sectional Title Act obliges a body corporate—the owners/members collectively—"to establish for administrative expenses a fund sufficient in the opinion of the body corporate for the repair, upkeep, control, management and administration of the common property (including reasonable provision for future maintenance and repairs), for the payment of rates and taxes and other local authority charges for the supply of electric current, gas, water, fuel and sanitary and other services to the building or buildings and land, and any premiums of insurance, and for the discharge of any duty or fulfillment of any other obligation of the body corporate" (Section 37[a]).
A body corporate that fails to provide for sufficient funding for proper maintenance is in violation of the Act.
What can an individual owner do if her/his investment is in jeopardy as result of neglect of fellow owners? There are options to pursue.
In response to Giovanni Camara Da Costa comment below, “What happens when the deterioration of the Common Property damages an Owners Section? Should the cost still be split 50/50?”, herewith my response:
So you own a living space within a collective property, you are probably paying dearly off on your bond and a monthly levy for your part-responsibility regarding common property. How can you not be interested in the general state of health of the sectional title scheme? As owner, you have the right to timely receive the relevant documentation about the annual general meeting and to attend. If for some reason you cannot attend in person, you may entrust your rights to a proxy to represent your interests.
When you decide to purchase property in a sectional title scheme you automatically become a member of the body corporate — this is the body comprising all owners of the scheme. Make a point to study the "owner's manual", namely the sectional title act, the regulations and in particular the management and conduct rules relevant to your scheme — the act and prescribed rules are available from the library of Sectional Title Online.
Some as you do go for an annual medical check-up, bold tests, dentistry check, mammogram and gynaecologist check; you should make a point to attend the scheme's annual general meeting — because your interests are at stake.
Each body corporate must hold an AGM within four months after the end of the scheme's financial year (PMR 51 — prescribed management rule).
You are entitled to 14 days notice to the AGM of any special general meeting of the body corporate and if a special resolution forms part of the agenda, 30 days notice (PMR 54).
When the date and time arrived the meeting cannot just commence, there must be a quorum present (PMR 57) in person or by proxy (PMR 67); if not the meeting must be adjourned to a week later (PMR 58).
It is prescribed who chairs the meeting (PMR 59) and how votes are made (PMR 60-66).
There is a compulsory agenda (PMR 56), which includes:
Why does section 44 (g) of the Sectional Titles Act, 95 of 1986 restrict the use of a section for its intended purpose?
Before an owner or tenant use a sectional title section for purposes other than its intended use, the owner of tenant must obtain written consent from all the owners of other sections in the scheme.
Section 44(1) reads: An owner shall‐
(d) use and enjoy the common property in such a manner as not unreasonably to interfere with the use and enjoyment thereof by other owners or other persons lawfully on the premises;
(e) not use his section or exclusive use area, or permit it to be used, in such a manner or for such purpose as shall cause a nuisance to any occupier of a section;
(g) when the purpose for which a section is intended to be used is shown expressly or by implication on or by a registered sectional plan, not use nor permit such section to be used for any other purpose: Provided that with the written consent of all owners such section may be used for another purpose.
When we wanted to start a virtual Close Corporation, running it from our section and aware of the general poor response rate to sectional title issues, we sent a letter with the wording below to all members of the body corporate:
As a matter of courtesy we are hereby, in terms of sections 44 (1)(g) and (2)(a) of the Sectional Title Act, informing members of the Body Corporate of XXXXXX (Scheme No XX of XXXX) that we intend operating a close corporation from section XXX. It is essentially a virtual (computer and Internet-based) micro-business. We give you the insurance that the business will not in any way interfere with your or your tenants' (if applicable) use and enjoyment of individual units or the common property (Sections 44  [d & e] of the Sectional Title Act refers).
Would you please acknowledge receipt of this notification and give your written consent to our running XXXXX CC from our unit. Either e-mail your consent or please sign and drop the notification in our mail box at XXXX or fax to XXX XXX XXXX. Any non-responses by XX XXXX 20XX will be taken as a sign of consent.
Should you have any queries, please do not hesitate to call XXX XXX XXXX
However, section 44(2) further reads: (a) Any owner who is of the opinion that any refusal of consent of another owner in terms of the proviso to subsection (1) (g) is unfairly prejudicial, unjust or inequitable to him, may within six weeks after the date of such a refusal make an application in terms of this subsection to the Court.
(b) If on any such application it appears to the Court that the refusal in question is unfairly prejudicial, unjust or inequitable to the applicant, and if the Court considers it just and equitable, the Court may with a view to bringing the dispute to an end make such order as it deems fit, including an order that it shall be deemed that the requirement stated in the proviso to subsection (1) (g) is met, an order that the provisions of section 14 of this Act which the Court deems appropriate, shall be applied with reference to the amendment of the registered sectional plan in question, any other supplementary order as the Court deems fit, and an order concerning costs as it deems appropriate.
Obviously, when the intended business might violate your rights in terms of section 44 (1) (d & e) you have the right as owner to assert your rights.
The facts or circumstances may differ, but many sectional title schemes are faced with realities such as:
Options to consider:
It is important to look into a scheme's situation before buying, because of common property responsibilities. It is further essential to get to know your rights (and obligations as member of the body corporate) as owner within a scheme. Attendance of annual and special general meetings of the scheme (body corporate) is important, because decisions may impact on you materially—a medium term look at maintenance and cash flow (finances) is crucial.
Good question, deserving some explanation and unpacking.
The extracts from section 37 of the STA indicate the responsibility of the owners collectively (i.e. the body corporate) regarding maintenance, repairs, compliance with legal imperatives, insurance, payment for services, levies in accordance with all these expenses and raising the levies payable.
An owner protested: 'I am not happy about the possibility to pay extra money because somebody did not pay their levies, my record of payment will attest that I also had difficulties in payments and I have just been back on my feet, therefore if I were to pay extra money will take me back to square one and I do not want to be in arrears anymore.'
Agreed; it is not fair—not conforming to approved standards, as of justice, honesty, or ethics. However, while the legal collection process (Download Legal Process Flow Chart - if the document does not open, save it to your PC's hard drive and open it from there) deals with the owner/s in arrears, the remaining owners do not have much of a choice.
Revisited 28 February 2011
Or is sectional title ownership fraud by the bystander syndrome? The purpose of this post is to indicate that there is really no grounds for apathy of sectional title owners, but rather a demonstration of real interest is most needed.
"Apathy is a mental state in which the sufferer lacks the desire, will or energy to engage in any activity, whether intellectual or physical. It is variously called indifference, boredom, lassitude, languor, listlessness, laziness, lethargy or inertia. It may be a symptom of mental disorder. It is first alienation of the self from the world and then self-alienation. Finally it is withdrawal from all participation in the care of others and care of oneself. Collectively, apathy may be expressed in social, economic, political or ideological paralysis, with all the available energy for change locked up in the institutions, systems and structures of society."
What is it about sectional title ownership that owners are often characterised by apathy? Could it be that people attracted to sectional title ownership have a pre-disposition towards alienation mental disorder?—I am not serious. However, Political Apathy Disorder (PAD) is proposed as a new DSM diagnostic category for the failure to develop a social conscience.
Apathy is a common reaction to stress where it manifests as "learned helplessness"; it really is a veiled form of anger. Apathy is often the end-result of prolonged deprivation—if earlier reaction of rebellion led to defeat and humiliation, until finally all response seemed to disappear—there is loss of hope with an impoverishment of thinking processes. In contrast, sectional title ownership offers the opposite to helplessness, defeat and loss of hope:
Deprivation, helpless, defeat, reason for loss of hope—I think not. Ignorance, yes most probably.
The bystander syndrome: Kitty Genovese, an American woman who became famous for her murder, was stabbed to death in New York on 13 March 1964. Kitty was driving home around 3.15am. She parked about 30 metres from her front door. As she walked to her door, she was approached by Winston Moseley. Moseley overtook her and stabbed her twice in the back. Kitty screamed. Her screams were heard by several neighbours. But it was a cold night, many had their windows shut and few recognized it as a cry for help. One of the neighbours did shout at Moseley, "Let that girl alone". Moseley ran away and Kitty made her way to her apartment. Kitty was seriously injured, in full sight of her neighbours, but no one helped her.
Some called to the police, but it was not given a high priority, as it was thought she was "only" beaten up. Witnesses observed Moseley get into his car and drive away. He then returned ten minutes later and found Kitty barely conscious at the back of the building. Out of sight, he attached her again, stabbing her several more times. She tried to defend herself, as was shown by knife wounds on her hands. He sexually assaulted her as she lay dying. He also stole money from her and left her to die. The attacks spanned over half an hour. Eventually, a witness did call the police. The police and ambulance arrived, but she died on the way to the hospital.
The media then reported that 38 people had witnessed or heard her attack. The New York Times printed an article - "Thirty Eight who Saw Murder Didn't Call the Police." This led to a media frenzy and much psychological research. What had possessed these witnesses to do NOTHING whilst Kitty was being stabbed and murdered? This psychological phenomenon became known as bystander apathy, the bystander effect or 'Genovese syndrome'. It is basically a phenomenon where someone is less likely to intervene in an emergency situation when other people are present and able to help, than they would if they were alone.
Revised 15 June 2010 with regard to 25% ownership in value: based on the participation quotas.
The cost of replacement or repairs rests with the owner:
Some managing agents have agreements with maintenance and repairs contractors. The various schemes the managing agents serve are provided with a list of approved contractors. When services are required, the trustees come to an agreement and contact the contractor concerned and make arrangements to first get a quote/s or to have the repairs made. The contractor does the repairs if so instructed and the trustee concerned signs the invoice, which the contractor hands in at the managing agent. The managing agent pays the various contractors at agreed intervals and debits the scheme's account. Generally such an arrangement works well.
Ignorance and/or non-adherence to procedure may, however, cause problems, for example:
If sections are adjacent to one another the median-lines between sections represents the boundaries. In the situation of sides that do not have an adjacent section, the median-lines form the boundary between the section and the common/collective property—the same applies to free-standing sections, the median-lines form the boundary between the section and the common/collective property. Everything on the inside of the median-line is the individual owner's property and responsibility to maintain.
The inner part of window panes and doors is the responsibility of the owners of individual sections, whereas the outer part is the responsibility of the owners collectively (the body corporate). The cost of replacement of a window, if cracked by for example hail damage, is therefore divided 50:50.
Minimun wage increases for domestic workers from 1 December 2012. The South African Department of Labour implemented Determination 7 to protect domestic workers from exploitation. A sectional title scheme usually employs one or more persons (depending on size and scope of common services needed), if it does not make use of contract-services. Such persons are classified as domestic workers and the Determination 7 applies to the relationship between such individual/s and the body corporate, as employer. However, there are contrasting opinions if the sectoral determination 7 applies to the employees of a body corporate - added 27 September 2010.
Minimum wages for domestic workers are set in terms of Determination 7. The minimum wage table is divided in two areas. Area A includes the following South African local governments: Bergrivier Local Municipality, Breederivier Local Municipality, Buffalo City Local Municipality, Cape Agulhas Local Municipality, Cederberg Local Municipality, City of Cape Town, City of Johannesburg Metropolitan Municipality, City of Tshwane Metropolitan Municipality, Drakenstein Local Municipality, Ekurhulen Metropolitan Municipality, Emalahleni Local Municipality, Emfuleni Local Municipality, Ethekwini Metropolitan Unicity, Gamagara Local Municipality, George Local Municipality, Hibiscus Coast Local Municipality, Karoo Hoogland Local Municipality, Kgatelopele Local Municipality, Khara Hais Local Municipality, Knysna Local Municipality, Kungwini Local Municipality, Kouga Local Municipality, Langeberg Local Municipality, Lesedi Local Municipality, Makana Local Municipality, Mangaung Local Municipality, Matzikama Local Municipality, Metsimaholo Local Municipality, Middelburg Local Municipality, Midvaal Local Municipality, Mngeni Local Municipality, Mogale Local Municipality, Mosselbaai Local Municipality, Msunduzi Local Municipality, Mtubatu Local Municipality, Nama Khoi Local Municipality, Nelson Mandela, Nokeng tsa Taemane Local Municipality, Oudtshoorn Local Municipality, Overstrand Local Municipality, Plettenbergbaai Local Municipality, Potchefstroom Local Municipality, Randfontein Local Municipality, Richtersveld Local Municipality, Saldanha Bay Local Municipality, Sol Plaatjie Local Municipality, Stellenbosch Local Municipality, Swartland Local Municipality, Swellendam Local Municipality, Theewaterskloof Local Municipality, Umdoni Local Municipality, uMhlathuze Local Municipality and Witzenberg Local Municipality. Area B includes the rest of the country not specified in A.
The minimum wage table is divided in two tables. Table 1 determines the minimum wages for domestic workers who work more than 27 ordinary hours per week, whereas Table 2 specify the minimum wages for domestic workers who work 27 ordinary hours or less per week.
Herewith a combination of Tables 1 & 2 for area A only:
Minimum rates for the period 1 December 2012 to 30 November 2013
TABLE 1: 27+ hours
TABLE 2: ≤27 hours
Hourly Rate (R )
Hourly Rate (R )
Weekly Rate (R )
Weekly Rate (R )
Monthly Rate (R )
Monthly Rate (R )
Minumum rates for Table 1 (area A) 1 Dec 2012 to 30 Nov 2013 are plus 7.4%
Note that the CPI (excluding owners' equivalent rent) has replaced CPIX according to Gazette No 32397 regulation No. R. 737 dated 17 July 2009 and the August CPI was available 6 weeks prior and thus utilised.
The wages for 1 December 2012 to 30 November 2013 was calculated as follows: CPI (excluding owners' equivalent rent) plus 1% for Area A = 6.4% + 1% = 7.4%.
Each unit owner pays her/his/their share of the wage/s, included in the levy, based on the participation quota relevant to the unit.
Updated 8 December 2012