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.