Owners of sectional units are required to pay validly raised general and special levies to their bodies corporate.
When a person default on their levy payments, those who have duly paid end up subsidizing the defaulting person which results in contentions against the body corporate as a whole, who are then prejudiced.
If the defaulting persists, this could lead to the body corporate experiencing a shortfall in their expected income which may result in them not having enough funds to cover the running expenses of the scheme.
Being committed to ensuring that the arrear levy amount is collected should be a priority for the scheme’s trustees and managing agent.
The following steps should be taken when an owner falls into arrears:
In terms of section 15B(3) of the Sectional Titles Act a conveyancer is required to certify that the body corporate has confirmed that the arrear amount of a particular unit has been paid or has been secured to its satisfaction.
Therefore if an owner in arrears sells their unit, they will have to obtain a ‘levy clearance certificate’ from the managing agent or trustees before the unit can be legally transferred to the buyer.
This provision can be used as a tool by the trustees and the managing agent who must refuse to give the owner a levy clearance certificate until all arrear levy amounts owing to the body corporate have been paid in full.
Contact Van Deventer & Van Deventer Incorporated to assist you to collect arrear levies
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A rates clearance certificate is a certificate which is issued by the relevant local municipality on application by a conveyancer for the transfer of a property.
The purpose of this document is to prove that all the outstanding debt on the property has been paid by the seller.
Read More ...Posted by Cor van Deventer on Wednesday, November 28, 2018 Views: 228