By the Paddocks Club team

Below are examples of two questions on the Paddocks Club discussion forum, to show you what is available to our Community members!

Trustee in arrears and still defaults on repayments

Member’s question:

Good day,

There is a trustee who is in arrears with his levies and was handed over to the lawyers for the collection of the outstanding levies. He makes one payment and then continues to default on his arrears. This person is insisting he will remain as a trustee and we feel the situation is detrimental to the body corporate. Is he still permitted to remain as a trustee given he has to vote on certain issues at meetings and might be in conflict with certain agendas regarding levy collections whilst being in arrears himself?

Anton’s answer:

Good day,

A person ceases to be a trustee if he or she does not pay arrears in spite of a court or adjudicator’s order. The position is not reversed once they pay, as set out in prescribed management rule 6(4)(f).

Section 3(2) says the body corporate may recover arrears by applying to the Community Schemes Ombud Service for an order so that is what the trustees should do, having notified that person as required in prescribed management rule 25(2).

A trustee may not vote in a trustee resolution, or even attend the part of a meeting at which that matter is discussed if he or she has a personal interest in the matter, according to prescribed management rule 6(3) and prescribed management rule 14(3)(b).

Hope this helps to clear things up!

Overdue levies in a Sectional Title

Member’s question:

Good day,

We have just had our annual general meeting and have made a few amendments to our conduct rules. One of them is in the levies section where it states the following:

“Levies are due in advance on the first of each month and are payable within 5 days after which interest, at a rate determined by the trustees, will be payable on overdue accounts.”

We want to change that to put in a percentage of what we can charge per month.

Can you let me know what the minimum and maximum are, that we can charge per month?

Anton’s answer:

Good day,

There is no need for this rule as the prescribed rules deal with the issue.

Prescribed management rule 21(3)(c) allows the trustees to charge interest on arrears and provides for the maximum rate. The maximum rate regulated by the National Credit Act for incidental credit (which is the accepted rate) is 24% per annum, which is 2% per month. This is also the rate charged by the Community Schemes Ombud Service for arrears on its levy.

Prescribed management rule 25(1) says the trustees must notify the members in writing of their liability to pay the contribution, what it is and the interest that applies.


Article reference: Paddocks Press: Volume 13, Issue 6.

Professor Graham Paddock, Anton Kelly, Zerlinda van der Merwe and Ané de Klerk are available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

Back to Paddocks Press – June 2018 Edition.

8 Comments.

  • Wolfgang Redeker
    27/06/2018 11:24

    Good day

    Good day
    I have lodged a dispute against our Chairperson, with CSOS. The said Chairperson was illegitimately elected as a Trustee whilst having outstanding debt to the HOA. This contravenes clauses 8.8 and 26.2 of our Constitution. Also the then Chairperson warned all Owners, in writing, not to attend the AGM if they had “any sum of money” outstanding.

    This Chairperson continued to be in debt whilst a Trustee for 2 more months.

    Unfortunately CSOS due to poor administration have let 2 months go by without holding the Concilliatory meeting. I have to leave for work (Offshore for 3 months) and warned CSOS of this on 1st June 2018. No reaction by CSOS. The Conciliator just granted the “Exco” a further 2 days extension for their submission due to CSOS misprinting the year (2017) of due date for their submission. I objected in writing to the Conciliator but received no reply.

    The “Exco” have issued a veiled threat of costs which they will no doubt try and recoup from me? It seems I will not be present for the Conciliation process and the SGM the Trustees have suddenly called to “discuss” my dispute.

    I objected to all of the above but received no reply to date.

    Please advise on the costs the Trustees might be able to claim and also on the fairness of the procedures by the CSOS.

    Many Thanks.

    Regards
    Wolfgang Redeker

    • Paddocks
      10/07/2018 16:16

      Hi Wolfgang,

      We can answer your question in a consult with one of our attorneys. Alternatively, we have an online Club where you can have your questions answered within 24 hours. You also have access to all the latest legislation as well as a navigator function to find topics easily, hundreds of video tutorials on various sectional title and HOA subjects and much more.

      There are various membership options including a ‘Quick access’ 7-day membership. Learn more, here: https://club.paddocks.co.za/

      If you have any questions, or to book a consult, please call on 0216863950 and we’ll be happy to help.

      Kind regards,
      Paddocks

  • “Under section 5 of the Sectional Titles Act 95 of 1986, the median line is defined as the dividing line between a floor/wall/ceiling/window/door. It is common practice if a wooden door/window needs to be replaced due to long term maintenance, that the owner pays half, and the Body Corporate pays the other half – this if neither party has been negligent in terms of their maintenance duties over time.

    Is there any case law to this effect? And is this truly a generally accepted practice? What is the replacement is aluminium and not wood, would (or should) the Body Corporate pay half? This under the thinking that the maintenance of aluminium will be a lot less than wood. Aluminium however being more expensive. “

    • Paddocks
      13/07/2018 16:58

      Hi Arthur,

      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

  • I don’t know if you received my last message. I would just like to know if 4 trees can be removed from the common property area (which were planted there so that 3 townhouses did not look onto the unsightly view of the houses in front with wash lines, garden sheds etc. Do the trustees have to have a vote from all 60 owners prior to something as large as this being removed. It was done with no knowledge given to any of us.

    These trees must have cost an absolute fortune to be cut and removed – I was at work when this happened with no prior knowledge.

    All I am asking now, is that a few large pots be put against the walls of the front houses with bougainvillea or something hardy, so that they can grow and eventually cover the ugly site of the front. They say they do not have the funds, but the rest of the gardens are continually having new plants; ie. annuals and perenials, planted but a few pots can’t be bought to cover this ugly site.

    I am quite sure that all 60 owners of our townhouses were supposed to vote under the sectional titles act, prior to these trees being removed.

    Our address is Mill Hill Townhouses, Cor Norman and Main Rds, Bryanston, Sandton, South Africa

    Your help would be truly appreciated.

    • Paddocks
      13/11/2018 14:00

      Hi Carol,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer a 1-week Free Basics of Sectional Title short course.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks

  • Good day. When the Body Corporate decides to acquire land adjacent to the existing property is it only the trustees who decide anonymously in writing to acquire the land or do the owners themselves also have a say in the purchasing decision?

    • Paddocks
      23/11/2018 09:48

      Hi Leon,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks