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ECUPERATING UNPAID LEVIES THE LEGAL METHOD

The greatest problem dealing with numerous Body Corporates (BC’s) is the quantity that they have impressive in unsettled levies. Lots of have defaults summing up in the 10s and numerous thousands. The concern on a lot of trustees’ lips is, “What can we do with these hangers-on that will not pay but use all our centers and continue to be secured by our security service?”.

Lots of trustees resort to actions such as putting names up on a notice board, or stopping the perpetrators from utilizing the swimming pool.” Putting defaulters’ names on a notification board is risky. If an owner’s name is released in mistake, it might result in a claim for damages versus the BC. Tempting though it may be, preventing defaulters from using body corporate facilities would be wrong and is unneeded. And how would you do it?

The Sectional Titles Act and Rules recommend legal and efficient methods of recovering financial obligations, ways that BC’s should carry out and pursue. Although lots of bodies industrial throughout South Africa are facing frighteningly high overalls of unpaid levies and special levies, it is obvious that most of them do not have a plainly defined and published policy for managing unpaid levies. Others are frequently implicated of not following the guidelines, and even worse, using them selectively.

Section 37 of the Act requires the BC’s to establish a levy fund to which every owner must make contributions, determined according the Participation Quota (PQ) of the owner’s section. The BC’s is entitled to set up legal action against non-payers and to charge interest on defaults and to recuperate legal costs from the defaulter. In spite of this, there are lots of cases of owners who have actually not paid their levies for many months and against whom no action has been taken. There is no reason whatsoever for such lack of exercise on the part of the body corporate and trustees. Defaulters need to be warned that the cash that they owe is not owed to the managing agent or the trustees, however to every other owner in the scheme. Learn about sell my house quickly at www.propertycashbuyers.com .

Members who do not pay their levies while continuing to enjoy all the centers are living at the expenditure of their neighbours. It is a thread that runs through the spirit and definition of the Act that members of the body business should be treated similarly. There can be no special dispensations for the favoured or penalty for the others. It is absolutely necessary that financial obligation recovery procedures need to be followed relatively, regularly and swiftly. Numerous bodies corporate implement a debt healing program similar to the one that follows:.

On the 15th day of the very first month, the defaulter gets a friendly, written reminder, for which she or he is charged a management cost of R50, in addition to which interest computed at 2,5 % each month is added.

On the 15th day of the 2nd month, defaulters receive a less friendly, last reminder for which he or she is charged another R50. Included in this letter is a caution that if the cash is not paid, the matter will be turned over to the body business’s attorney and that all recuperation costs will be claimed from the defaulter.