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Lake Properties, Cape Town is a young and dynamic real estate agency located in Wynberg, Cape Town. We offer efficient and reliable service in the buying and selling of residential and commercial properties and vacant land in the Southern Suburbs including Bergvliet,Athlone,Claremont,Constantia,Diepriver,Heathfield,Kenilworth,Kenwyn,Kreupelbosch, Meadowridge,Mowbray,Newlands,Obervatory,Pinelands,Plumstead,Rondebosch, Rosebank, Tokia,Rondebosch East, Penlyn Estate, Lansdowne, Wynberg, Grassy Park, Steenberg, Retreat and surrounding areas . We also manage rental properties and secure suitably qualified tenants for property owners. Another growing extension to our portfolio of services is to find qualified buyers for business owners who want to sell businesses especially cafes, supermarkets and service stations. At Lake Properties we value our relationships with clients and aim to provide excellent service with integrity and professionalism, always acting in the best interest of both buyer and seller. Our rates are competitive without compromising quality and service. For our clients we do valuations at no charge

What can a body corporate do if one of the owners of a flat refuses to pay levies in South Africa

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Let’s dive deeper into each step a Body Corporate in South Africa can take when an owner fails to pay levies, with elaboration and context from the Sectional Titles Schemes Management Act (STSMA) and Prescribed Management Rules (PMRs).


1. Formal Demand for Payment

  • Purpose: This is the first step to encourage voluntary compliance and avoid costly legal action.
  • What it includes:
    • Owner’s details and unit number.
    • Breakdown of levies owed (monthly amounts, interest, admin fees if applicable).
    • Deadline for payment (commonly 7–14 days).
  • Format: Can be sent by post, hand-delivered, or email (if permitted by conduct rules or consented to by the owner).

Why it matters: This letter forms part of the paper trail in case the dispute escalates to court.


2. Interest on Arrears

  • PMR 21(3)(c) empowers the body corporate to charge interest on overdue amounts.
  • Key conditions:
    • The interest rate must be determined at a general meeting.
    • Cannot exceed the rate prescribed under the National Credit Act (NCA) (currently around 2% per month, but subject to change).
  • Purpose: Deters late payments and compensates the body corporate for the delay in cash flow.

3. Legal Action Without General Meeting Approval

  • STSMA Section 3(2): Trustees do not need a special resolution or AGM approval to initiate legal action for levy collection.
  • The process often involves:
    • Sending a final demand (from attorneys),
    • Issuing a summons via Magistrate’s or High Court,
    • Applying for a default judgment if the owner doesn’t respond.

Important: Even if the unit is being rented out, the body corporate can seek a court order to collect rent directly from the tenant.


4. Court Judgment & Enforcement

Once judgment is obtained, the body corporate has strong legal tools to enforce it:

Options include:

  • Garnishee Order: Deducting directly from the owner’s salary.
  • Attachment of Moveable Assets: Sheriff can seize property (e.g. furniture) to sell at auction.
  • Sale in Execution: In extreme cases, the sectional title unit can be auctioned to recover arrears.

Tip: Courts often prefer less drastic measures first, so garnishee orders or payment arrangements are typically pursued before forced sales.


5. Legal Costs Recovery

  • PMR 25(5): Body corporate may recover “reasonable legal costs and disbursements” from the defaulting owner.
  • This includes:
    • Attorney fees,
    • Sheriff’s costs,
    • Collection commission,
    • Court filing fees.

6. Levy Clearance Certificate (Transfer of Property)

  • STSMA Section 15B(3): No transfer of ownership can be registered unless the body corporate issues a levy clearance certificate.
  • Certificate is only issued if:
    • All arrears + interest + legal costs are paid in full.
  • Effectively, this gives the body corporate leverage, as the owner cannot sell until their debt is cleared.

7. Restricting Access to Non-Essential Amenities

  • While the law prohibits cutting off basic utilities, conduct rules may allow restricting:
    • Pool access,
    • Gym facilities,
    • Use of entertainment areas.
  • Important: This should be applied fairly and consistently, and only where rules explicitly allow it.

Bonus Tip: Debt Collection Agencies

  • Some bodies corporate prefer outsourcing the process to registered debt collectors, who will pursue arrears with or without legal proceedings.
  • This can reduce administrative burden but may incur commission fees.

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