Levy Collections in Sectional Title Schemes
By Jennifer Paddock
I’ve been writing articles about sectional title for a long time now – this will be my 8th year.
And my memory is not that amazing!
So whilst Googling things about sectional title I sometimes stumble across old articles that I’ve written which I had completely forgotten about. Here is one I came across today about levy collections in Sectional Title schemes:
I would love to hear how you deal with collections in your schemes – arrear levies are a persistent issue for most bodies corporate so any pearls of wisdom would be wonderful! Share with us by commenting below.
Image source: biz911.com
Thinking Inside the Box 
We live in a sectional title scheme where we have a management agent (we got rid of the last one). We are also signed up to another company to collect levies (which yes it should be the management agent). Once an owner is arrears by more than R150 it gets handed over to another 3rd party company for debt collections who in turn adds on legal fees, email notifications at R17.10 per shot, phone calls at R23 per call, sms’s at R17.10, etc, etc taking the owner to exorbitant arrears – how is this legal as our agreement with the said company is to charge interest on arrears up to R3,000 and then appoint an attorney?
I am fighting them because I was being charged a double charge as an adhoc levy, garden levy (when my garden is not sectional title – it is exclusive use)) and i refused to pay the adhoc levy … although I regularly pay my ordinary levy. How can this be legal to force owners to pay double charges and unlawful fees?
Hi Aubrey, we answer one question a day (Mon-Fri) for free on our FaceBook page. Please search for Paddocks on Facebook, like our page and then post your question to our wall. One of our consultants will answer you in the next few days.
If levies was increased after the AGM but no correspondence was send out to owners after the AGM by Trustees Resolution which stipulates the levy increase and date of increase. A backdated levy was also implemented at the AGM (5 months after FYE) which only two owners voted on. Levies was not validly raised? Or am I wrong.