Even as a sense of normalcy is returning to our lives, homeowners and body corporates are still coming face to face with the continued effects of the pandemic. With financial strain continuing to darken the lives of many homeowners, the question becomes is it legal to allow leniency in the payment of levies.
As the economy struggles to find its footing again, body corporates are still being approached with requests to be lenient when it comes to levies that are in arrears. The unfortunate truth is that the matter isn’t all that simple, and that body corporates cannot simply accommodate requests to settle for a lower amount or write off arrear levies.
Levies help cover the expenses the body corporate encounter over the course of the year. These expenses range from general maintenance and the cleaning of common areas to settling insurance premiums and rates, taxes and other municipal bills. Levies are thus structured uniquely to each sectional title’s financial situation.
In light of the financial burden that rests with a body corporate, it seems apt that it should be willing to accept lower payments as long as it is able to cover the costs it runs. That is not the view of the law, though.
In a recent High Court judgment in Pietermaritzburg, the court made it clear that levies were there to create a uniform shouldering of the common burden, which must be shared equally by all sectional title owners in the scheme. As such, the trustees of a body corporate do not have the power to allow lesser payments for some members while others are still expected to commit to the regular levies, as this would undermine the very purpose of levies.
When sectional title owners are no longer able to commit to their full levy responsibilities, body corporates are, unfortunately, legally obliged to take the matter further to ensure that all members are equal in terms of the body corporate’s terms and conditions.
Whether you are facing financial difficulty and struggling to make levy payments, or you are a trustee of a body corporate that needs guidance on the next steps when a member falls behind in levy payments, we’re here to offer you the legal guidance you need.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)