Sectional Title debt is like any other and in a difficult economic climate, uncooperative owners in sectional title complexes have become more stubborn and devious.
When Ivan commenced acting as an attorney for several large commercial firms some 25 years ago, his law firm used to send letters of demand to wayward individual or company debtors, and he would receive a petrified response from the relevant person or a credit controller/Senior Financial Manager advising him that payment would be made the next day. How times have changed!
Unfortunately, Letters of Demand sent by credit departments, attorneys and law firms count for nothing these days and the need to develop drastic measures to collect outstanding debts has become the order of the day.
The Sectional Titles Act
The Sectional Titles Act came into force in 1986 and legislates the manner in which multiple dwellings in one property development are managed. While much of the Act relates to rules and regulations of management, there are specific clauses in the Act which relate to the collection of levies and the responsibility of both owners, the body corporate and managing agents (where such are appointed).
It is recommended that the Trustees of any complex ensure that a short-term debt collection process is followed by their Managing Agents, or person(s) appointed to do the administration, with the purpose of ensuring that owners pay their monthly levies and other charges.
As soon as it appears that someone may be going “downhill” in their arrears payments, it’s time to get the legal process going, or else the amounts will add up far too quickly and the health of the Body Corporate’s finances will be in jeopardy.
Speak to one of Ivan Zartz Attorneys’ team members on (011) 483-2741 or use the options on the right of this page to find out if it’s time you took immediate action.
Initial consultations are charged at R1 500 excluding VAT. Thereafter should you wish to continue with the matter, a fee is discussed and agreed upon.