
The legally correct way for an owner to deal with a situation where she believes that she is owed money by the body corporate is to continue paying levies and attempt to recover the money that she believes is owed to her through the legal channels of arbitration or litigation.
If an owner does withhold her levies, she is subject to the following “sanctions” in terms of the prescribed rules:
1. In terms of prescribed management rule 31(6), the trustees are entitled to set a rate of interest to be applied to overdue amounts, so withholding levies could end up costing an owner substantially more than just the levy amounts in the long run.
2. Prescribed management rule 64 provides that except in the cases of special and unanimous resolutions, an owner is not entitled to vote if any contributions payable by her in respect of her section have not been duly paid. Therefore an owner who withholds her levies is unable to vote for ordinary resolutions in respect of the section that she is withholding levies on.
Article reference: Paddocks Press: Volume 6, Issue 1, Page 5
Jennifer Paddock is a sectional title expert. Learn more about the benchmark course in sectional title scheme management, presented by Paddocks in conjunction this the University of Cape Town.
2 Comments. Leave new
We are in a process of electing the new Trustees at a requested SGM. We recently been advised that owners owing levies will not vote at such meeting. The situation we are in is that there is 80% owners owing levies which suggest we will not be able to meet the quorum.
Hi Langa,
Thank you for your comment. We would love to help but unfortunately do not give free advice. Here’s how we can help:
– We offer a Free Basics of Sectional Title 1-week short course. You’ll be able to ask your course instructor any related questions. Find out more here.
– We offer consulting via telephone for R490 for 10 minutes. Please call us on +27 21 686 3950.
– We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes. Find out more here.
Kind regards
Paddocks