Do Levies Include Water and Electricity? Understanding Sectional Title Levies in South Africa in 2025

Q: Do sectional title levies include water and electricity?

No, in most cases, water and electricity are billed separately. However, in some sectional title complexes, the body corporate may bulk purchasethese utilities and include them in the levy.

Q: How do I know if my levies cover water and electricity?

Check your levy statement, sales agreement, or consult your managing agentto confirm what is covered.

Q: What happens if I don’t pay my levies?

Non-payment of levies can result in: Interest penaltieson overdue amounts. Legal actionfrom the body corporate. Restricted accessto communal facilities. A possible property attachment and saleto recover outstanding amounts.

Q: Can a body corporate cut off my electricity if I don’t pay my levies?

No, a body corporate cannot disconnect your electricityas a form of penalty for unpaid levies. However, they can take legal steps to recover outstanding amounts.

Q: How are levies calculated?

Levies are calculated based on participation quotas (PQ), which determine how much each unit contributes based on its size and valuewithin the complex.

Q: Do I still have to pay levies if I am renting?

If you are a tenant, your landlord is responsiblefor levy payments. However, some lease agreements may require tenants to contribute towards certain expenses.

Q: Are special levies different from normal levies?

Yes. Special leviesare additional fees charged for unexpected expenses or major repairsthat are not covered by the standard levy.

Q: How often do levy amounts change?

Levies are typically reviewed and adjusted annuallyby the body corporate to account for inflation, maintenance costs, and financial reserves.

Text asks if levies include water and electricity in South Africa. Background shows a woman and a man, with a professional tone.

If you live in a sectional title scheme in South Africa, you are required to pay levies to the body corporate that manages the property. However, many property owners and tenants are unsure about what exactly levies cover—particularly whether water and electricity are included.

In this article, we will clarify:

What sectional title levies cover.
Whether water and electricity are included in levies.
The difference between levies, rates, and utility bills.
FAQs about levies and utility payments.

What Are Levies in a Sectional Title Scheme?

Levies are monthly contributions that unit owners in a sectional title complex must pay to cover shared expenses. These fees help maintain the common property, cover operating costs, and ensure the smooth functioning of the body corporate.

What Do Levies Typically Cover?

Levies are generally structured to include:

Maintenance and repairs of shared areas (gardens, pools, walkways, security gates).
Building insurance (excluding personal home contents insurance).
Security services (guards, access control, surveillance cameras).
Common area electricity and water (e.g., corridor lights, communal garden irrigation).
Management and administrative fees (body corporate expenses, managing agents).
Reserve funds for major repairs and unforeseen expenses.

Do Levies Include Water and Electricity for Individual Units?

In most cases, levies do not include the cost of water and electricity for individual units. These utilities are typically billed separately and paid directly by the unit owner or tenant.

However, there are exceptions where sectional title complexes bulk-buy utilities and distribute costs among unit owners.

Understanding Water and Electricity Billing in Sectional Title Schemes

Flowchart of water and electricity billing. Categories: Common Area Costs, Municipal Billing, Prepaid Utilities, Bulk Purchases.

1. Prepaid Water and Electricity

Many complexes require residents to purchase prepaid electricity and water vouchers. This means each unit is responsible for its own consumption.

2. Bulk Utility Purchases

In some cases, the body corporate arranges a bulk purchase of utilities, which are then divided among residents. These costs might be included in the levy or charged separately based on unit usage.

3. Separate Municipal Billing

Some sectional title owners receive municipal bills directly for their water and electricity usage. This is common when each unit has its own separate meter.

4. Common Area Utility Costs

Levies do cover water and electricity for communal areas, such as hallway lighting, elevators, security systems, and garden irrigation.

How to Check If Your Levies Cover Water and Electricity

To determine whether your levies include water and electricity, consider the following:

Check your levy statement – It should specify what is covered.
Read your purchase agreement – New owners should review their sales documents.
Ask your managing agent or body corporate – They will provide clarity.
Look at your electricity and water bills – If you receive separate invoices, then they are not included in the levy.

The Difference Between Levies, Rates, and Utility Bills

Expense Type	Paid To	What It Covers
Levies	Body Corporate	Common property maintenance, security, insurance, shared utilities.
Municipal Rates	Local Municipality	Property taxes, waste removal, sewage, land valuation costs.
Utilities (Water & Electricity)	Municipality or Prepaid Provider	Personal consumption of water and electricity for your unit.

FAQs About Levies and Utility Payments

Do sectional title levies include water and electricity?

How do I know if my levies cover water and electricity?

What happens if I don’t pay my levies?

Can a body corporate cut off my electricity if I don’t pay my levies?

How are levies calculated?

Do I still have to pay levies if I am renting?

Are special levies different from normal levies?

How often do levy amounts change?

Conclusion

While sectional title levies cover many essential services, they usually do not include individual water and electricity costs. However, this varies based on how your complex manages utilities.

To avoid unexpected bills, always check your levy breakdown and clarify any uncertainties with your body corporate or managing agent.

Understanding your levies and utility costs is crucial for budgeting and legal clarity. If you need expert legal guidance on sectional title disputes, levy payments, or property law matters, contact Jonker Vorster Attorneys today for professional assistance.