Sectional title owners need to be aware that as of 1 July 2009 they will have to pay their rates directly to the municipality, not through the body corporate as was previously allowed.
This is because the Municipal Property Rates Act No 6 of 2004 will come into full effect from 1 July. Some may welcome the switch but many sectional title owners will be unhappy about paying directly to the municipality.
The biggest concern they have is that they may end up paying far higher rates because each unit will now be individually assessed and rated. Many homeowners saw major increases a few years ago when municipal rates started being based on the market value of their property. Many people will simply not be able to afford a rates increase at this stage and we may see a few extra sectional title units coming on the market after the 1 July deadline if the rates do end up going up.
Not paying your municipal rates is also a far more serious offence than people may be aware of. The municipality may instigate the forced sale of a property to recover any monies owed to them if the owner is in arrears. This would be a very unpleasant experience for any homeowner and one that should be avoided at all costs. So keep up with paying those bills.
Another thing that needs to be kept in mind is that municipal rates take precedence over the bond or mortgage of the home. This means the property can be sold out from under the bank if the unit is in arrears with the municipality.
If you are the owner of a sectional title unit that has yet to switch over to paying rates directly to the municipality be aware that there is a deadline and start making provisions for a possible rates increase. It will serve you better to be prepared than to have a nasty surprise when the deadline passes.
What do you think? Will sectional title unit rates definitely increase with the change in billing?
