Estate Agents who sell sectional title property are expected to know about scheme management, and in particular about scheme finances. When a buyer finds him or herself with an unexpected expense, the estate agent is going to be the first person they blame.
Below you will see a question an Graham’s answer in regard to this type of situation, taken from Paddocks Club.
One of my staff recently purchased a unit at a point where the levies were approximately R1 000. Meetings which she does not have paper work had apparently taken place with the intention of introducing a special levy. The registration took place approximately 2 months ago and occupation has also taken place. At this point they have received notice for a special levy of R 2 200 for 18 months. Naturally this is an unexpected cost that they were not made aware of by the buyer. Is there possibly any recourse as my understanding is that should a levy be in place during the sale of the property the seller will be responsible until it terminates”
Hi Paddocks Club Member,
If the estate agent is aware that the body corporate is underfunded and is considering a special levy, then in my view it is his or her responsibility to share this information with a prospective purchaser.
In our view when an estate agent tells the market that he or she is a sectional title specialist, he or she has a responsibility to check the scheme’s financial position – and the monthly levy of R1 000,00 should have been a red light – this is much too low!