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You will also have to ensure that the zoning regulations allow such short-term
letting. If there are zoning restrictions these may also limit your ability to rent
out the unit or require the necessary permission to be obtained before you
rent the property.
If you are unsure whether your unit can be rented out for holiday
accommodation, it may be a good idea to talk to a property specialist to help
you determine any restrictions or requirements to you doing so.

Must a developer of a sectional title scheme
also pay levies?

Corlia van Zyl
January 2018

“I’ve developed as small sectional title scheme in town with a few units on
them. Most of the units have been sold and the body corporate has been
established. The body corporate has now requested me to also contribute
to the levies of the scheme. Am I as the developer required to contribute to
the levies?”
Property On closer inspection of the Sectional Title Schemes Management Act 8 of
2011 (“Act”) it is clear that the developer forms part of the body corporate
and the Act and its financial obligations are also applicable to the developer.
In respect of the payment of levies in the scheme, it is important to differentiate
between units that are already registered in the name of the developer and
where the developer is the holder of a right to extend the scheme. In the event
that units are already registered in the name of the developer, the developer
is regarded as the owner of those units in terms of the Act and will therefore
be liable to contribute to the administrative as well as the reserve fund of the
scheme for those specific units.
In a recent High Court case it was stated that in the event of a developer
being the owner of a right to extend the scheme, the body corporate may
recover from the developer an additional contribution, but only for the actual
amounts spent on the actual part of the common property reserved in terms
of the right to extend. Only when the units are completed on the common
property where the right to extend was reserved, and the sectional plans
to extend are registered in the Deeds Office, will levies become payable to
the body corporate by the developer in respect of these units. Should the
developer fail to register the sectional plan of extension within a reasonable
time after completion of the units, the body corporate may request payment

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