What is common area in an HOA?
Common elements or common areas are usually defined broadly. They include amenities or spaces available for use by all dues-paying homeowners living in the development. Some examples: park space, pools and beach areas, walking paths, athletic courts and fields, and clubhouses or pavilions.
Who is responsible for exclusive use area?
In summary, the body corporate is responsible to maintain exclusive use areas but need to raise and collect levies for these areas to fund its maintenance. In turn, owners are responsible for keeping these areas neat and to pay their EUA levies.
What is a participation quota?
What is a participation quota? A participation quota is the ‘share’ in the common property allocated to each section. The participation quota allocated to a section is usually used to calculate an owner’s share of the scheme’s common expenses and the value of each owner’s vote.
What is the purpose of a levy?
An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
What does it mean if a tax is levied?
A tax levy is the seizure of property to pay taxes owed. Tax levies can include penalties such as garnishing wages or seizing assets and bank accounts.
What does a levy include?
The Body Corporate levies usually cover the costs associated with running the estate and include such items as management, security, repairs, garden, pool and common property maintenance, and common property electricity.
How does a levy work?
A levy allows a creditor to withdraw money from a financial account—most commonly, a checking or savings account. If a creditor enacts a levy against you, it means the creditor freezes a financial account and then usually takes money in that account to cover your debt. (Learn about the levy process.) Garnishment.
How often is levy paid?
The levy is a monthly instalment paid by sectional title unit owners which facilitates the efficient day-to-day maintenance and management of the communal property of a Sectional Title Scheme.
What happens when you don’t pay levy?
A scheme that has not built up a sizeable reserve may need to delay paying creditors or their staff when levy income suddenly decreases. Other effects include: Interest will be charged on overdue accounts by the municipality. Services, such as water and electricity supply, may be interrupted or disconnected.
Can I refuse to pay levies?
Although this action may sound reasonable, the right to stop paying or to set off a debt against levies is not legally justified and owners are not, under any circumstances, entitled to simply withhold levies.
What happens if you don’t pay body corporate?
In addition to recovering the unpaid levies, a Body Corporate may also seek to recover: any penalty for late payment, including interest of not more than 2.5% per month. any costs reasonably incurred by the Body Corporate in recovering the amount outstanding, such as legal costs.