Author: Wesley Graham – STBB
1 November 2016
COLLECTION OF LEVIES IN SECTIONAL TITLE SCHEMES
The Sectional Titles Schemes Management Act and its regulations came into effect on 7 October 2016. The promulgation of the Act and regulations brought about a new procedure to be followed when collecting outstanding levies from an owner.
Rule 25(2) of the regulations states that if an owner is in arrears, the body corporate must send a final written notice to the defaulting owner. The notice must state that the member must immediately pay the overdue contributions and charges as well as any applicable interest thereon. The notice must in addition warn the owner that the body corporate intends taking action against him/her in order to recover overdue contributions, charges and interest if the monies owing are not paid within 14 days of receiving the final written notice.
Bodies corporate and managing agents should take care to follow the new prescribed procedure. If assistance is required, contact us at STBB.