IS YOUR LEVIES OUTSTANDING?

IS YOUR LEVIES OUTSTANDING?

IS YOUR ALLOCATION OF THE ELECTRICITY BILL TO THE MUNICIPALITY OR ESKOM OUTSTANDING?

DID YOU KNOW THAT BODY CORPORATES ARE ENTITLED TO MAKE A COURT APPLICATION FOR A

MONETARY JUDGMENT FOR ARREAR LEVIES OWED BY YOU AND FOR THE DISCONNECTION OF YOUR

ELECTRICITY!.


ALL OWNERS OF UNITS IN A SECTIONAL TITLE SCHEME ARE AUTOMATICALLY MEMBERS OF THE

BODY CORPORATE IN THAT SCHEME. AT AN ANNUAL GENERAL MEETING (AGM), THE BODY

CORPORATE WILL ELECT TRUSTEES TO REPRESENT THE BODY CORPORATE AND TO MANAGE THE

SCHEME. TRUSTEES WHO REPRESENT THE BODY CORPORATE AND MANAGE THE SECTIONAL TITLE

SCHEME MAY BY RESOLUTION APPOINT A MANAGING AGENT TO ASSIST IN THE PERFORMANCE OF

THESE DUTIES.

A FIDUCUARY DUTY THEREFORE EXISTS BETWEEN THE BODY CORPORATE AND ITS TRUSTEES IN

THAT THE TRUSTEES ARE COMPELLED TO MANAGE THE AFFAIRS OF THE BODY-CORPORATE IN A

MANNER THAT IS BENEFICIAL FOR ALL ITS MEMBERS (SECTION 8 OF THE SECTIONAL TITLES

SCHEMES MANAGEMENT ACT)

FURTHERMORE BODY CORPORATES ARE REGARDED AS NON- PROFIT ASSOCIATIONS. THEY ARE

PRECLUDED FROM DERIVING ANY INCOME FROM SOURCES OUTSIDE THE SCOPE OF THE SECTIONAL

TITLES SCHEMES MANAGEMENT ACT 8 OF 2011. OWING TO THEM BEING NON- PROFIT

ASSOCIATIONS WITH LIMITED MEANS OF DERIVING INCOME THEY ARE THEREFORE OBLIGED TO

RECOVER LEVIES FROM THEIR MEMBERS ON A MONTHLY BASIS SO AS TO ENSURE THE

MAINTENANCE AND UPKEEP OF THE COMMON PROPERTY OF THE SCHEME. BODY CORPORATES

ARE ALSO OBLIGED TO RECOVER LEVIES FOR THE PAYMENT OF ANY LIABILITIES OF THE SCHEME

TIMEOUSLY AND AS THEY BECOME DUE.

IT IS NOT UNCOMMON BODY CORPORATES OR MANAGING AGENTS TO ENGAGE IN CONTRACTORS

TO ATTEND THE SCHEME ON A MONTHLY BASIS. FOR THE PURPOSES OF THE READING OF

ELECTRICTY SUPPLY TO THE SCHEME SPECIALIST CONTRACTORS ARE ENGAGD TO READ EACH UNIT

OWNERS ELECTRICITY METER AND GENERATE A REPORT OF THE ELECTRICITY CONSUMPTION OF

EACH UNIT OWNER. THIS REPORT IS PROVIDED TO THE MANAGING AGENT WHO WILL FURNISH A

STATEMENT TO THE TRUSTEES AND TO EACH MEMBER OF THE BODY CORPORATE REFLECTING THE

ACTUAL USAGE OF THE ELECTRICITY AND THE AMOUNT OWING BY THAT INDIVIDUAL UNIT OWNER.

UNIT OWNERS WHO CONTINUE TO BENEFIT FROM ELECTRICITY SUPPLY WITHOUT PAYING THEIR

PORTION PLACE THE ENTIRE BODY CORPORATE AT RISK.

A BODY CORPORATE WHO FINANCES NON PAYING UNIT OWNERS AND WHO FAILS TO RECOVER

MONEYS FOR OUTSTANDING ELECTRICITY RUN THE RISK OF DEPLETING THEIR FINANCIAL

RESOURCES ALLOCATED FOR THEIR ELECTRICITY SUPPLY TO THE SCHEME WHICH MAY RESULT IN A

DISCONNECTION OF ENTIRE SCHEMES ELECTRICITY SUPPLY;

TO CUT A LONG STORY SHORT, A BODY CORPORATE IS ENTITLED TO INSTITUTE LEGAL PROCEEDINGS

FOR AN ORDER FOR THE PAYMENT OF ARREAR LEVIES AND INTEREST AND FOR AN ORDER

AUTHORISING THE DISCONNECTION OF A DEFAULTER`S ELECTRICTY SUPPLY TO THEIR UNIT UNTIL

SUCH TIME THAT ELECTRICITY CHARGES AND INTEREST ARE PAID IN FULL.

A BODY CORPORATE IS ALSO ENTITLED TO RECOVER LEGAL EXPENSES INCURRED WHEN UTILISING

DEBT RECOVERY MEASURES TO COLLECT ARREAR LEVIES AND OUTSTANDING MUNICIPAL

CONSUMPTION CHARGES.

THE RIGHTS OF ALL OWNERS IN THE SCHEME ARE AFFECTED WHEN A DEFAULTER FAILS TO MAKE

FULL ANF PUNCTUAL PAYMENTS OF LEVIES AND MUNICIPAL CONSUMPTION CHARGES.

PAY YOUR LEVIES AND MUNICIPAL CONSUMPTION CHARGES IT IS THE RIGHT THING TO DO!