Property owners must not withhold levy payments

It sometimes happens that a sectional title unit owner will become disgruntled with the way trustees are running their scheme and withhold their levy payments as a way of getting their message across.

What they do not realise is that in doing so they can do their scheme harm, in putting it in a state of financial risk, says Mandi Hanekom, operations manager of the levy funding company Propell.

The receipt of the full levy amounts from each owner each month is the lifeblood of all sectional title schemes and if one owner does not pay their levies, for whatever reason, it upsets the financial balance that the trustees work hard to maintain, she said.

Any sectional title scheme that has levy collection problems will not be able to pay its creditors in full and if the situation continues maintenance of the scheme might be reduced or postponed, which results in the value of the property being affected negatively, and could even result in the value dropping.

If the body corporate finds that any owner is in arrears, they usually send a reminder for the non-payment but if the owner chooses to ignore this, a letter of demand should be sent to him. In turn, if this letter is ignored, they should hand the matter over to a collection agency or an attorney as soon as possible. The non-payer will then be listed as a bad payer on ITC but this affects the body corporate negatively as well because they will have to cover the legal costs of recouping unpaid levies in the meantime, said Hanekom.

The processes of recovering unpaid levy amounts, if it becomes extreme, is a drawn out one, because once the account is handed over they then have to wait for the Sheriff of the court to serve a summons (he may pin the notice on the front door of the unit as this is the legal listed address of the owner of the unit). Once the summons has been issued the owner has ten working days to respond and if he doesn't the Sheriff can then attach goods to the necessary value. If he does not find value in the items in the unit, they may have to continue with proceedings to repossess the unit itself to sell at auction, which, too, is a lengthy process.

The owners that do not pay their levies must realise that the trustees of the scheme are not acting out of "spite" or nastiness but they are merely doing their jobs in using the full strength of the law to collect the outstanding money. If they do not do this they are letting the other owners (who are regular payers) down in not protecting their assets' value, said Hanekom.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 18 Jun 2018
      Many home sellers are motivated to appoint estate agents because they know that the agency will carry the costs of advertising and marketing their property.
    • 18 Jun 2018
      When a property is sold when it has a tenant in occupation, the questions often raised are: “What happens to the tenant if the landlord sells the property?”, and what rights the tenant will have with regards to cancelling the lease or enforcing it, says Sunell Afrika, rentals manager for
    • 18 Jun 2018
      Sellers are often caught off-guard by the expenses incurred in the selling of a property. Just like there is no such thing as a free lunch, there is also no such thing as selling your property without incurring at least some costs.
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    • 15 Jun 2018
      Putting your house on the market can be a stressful process. There are so many decisions to make that will impact how quickly your house is sold and for how much you can sell it for. It’s a serious money game where you can’t afford to make the wrong decision.
    • 14 Jun 2018
      The word tourist describes someone who is visiting South Africa for a limited time and is probably not going to buy a property here – so why is the tourism industry so important to the real estate sector?
    • 14 Jun 2018
      Serengeti Estates has entrenched its status as one of Johannesburg’s most desirable addresses for a spectrum of homeowners with its launch of The Signature Residences, a new cluster village.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us