Why arrear levies need a specialist
A scheme cannot choose not to pay its municipal accounts, insurance, security and maintenance, so every rand an owner fails to pay is carried by the owners who do. Levy recovery is different from ordinary debt collection: the debtor remains a member of the scheme, the trustees answer to the other owners, and the rules of the scheme, the Sectional Titles Schemes Management Act 8 of 2011 and the CSOS Act all shape what can be claimed and how.
We focus on this work. Our systems, reporting and account management are designed for community schemes, so trustees and managing agents receive clear, regular feedback on each account rather than having to chase it.
How we recover arrear levies
- Referral at about 90 days. We recommend handing over accounts from roughly 90 days in arrears, while the balance is still manageable and owners are most likely to settle.
- Ledger review and letter of demand. We check the levy ledger, interest and recoverable charges against the scheme’s rules, then issue a letter of demand.
- Acknowledgement of debt. Where an owner cannot pay in full, we put a structured arrangement in place through an acknowledgement of debt with enforceable repayment and cost-recovery terms.
- Summons and judgment. If the owner does not cooperate, we issue summons in the Magistrates’ Court or High Court and obtain judgment.
- Enforcement. Warrants of execution, emoluments attachment and garnishee orders, and section 65, 66 and 72 proceedings, followed where justified by a sale in execution.
Monthly reporting to trustees
Trustees and managing agents receive a monthly report on every matter: the stage it has reached, amounts recovered and legal costs incurred. That makes it easy to report to owners at the AGM and to see which accounts need a decision.
Who we act for
- Bodies corporate of sectional title schemes
- Homeowners’ associations and estates
- Managing agents acting on behalf of their schemes
- Share block and other community schemes
From our office at 259 Wilson Street, Fairland, Randburg, we act for schemes throughout Johannesburg and Gauteng.
Frequently asked questions
When should a body corporate hand over arrear levies?
We recommend referral from about 90 days in arrears. At that point the balance is usually still manageable for the owner, settlement is most likely and the legal costs of recovery stay low.
Can legal costs be recovered from the defaulting owner?
In most schemes, yes. The scheme’s rules usually allow the body corporate to recover legal costs from a defaulting owner, and we draft letters of demand and acknowledgements of debt so that recoverable costs are claimed from the owner rather than carried by the scheme.
Do arrear levies prescribe?
Yes. Unpaid levies are ordinary debts that prescribe after three years under the Prescription Act 68 of 1969, and each monthly instalment runs separately. Older instalments can be lost if a scheme waits too long, which is another reason to refer early.
Do you act for homeowners’ associations as well as bodies corporate?
Yes. We recover levies for homeowners’ associations and estates as well as sectional title bodies corporate, applying the HOA’s constitution and rules.
This page is general information, not legal advice. Contact us about your scheme’s circumstances.