Clampdown

A new protection mechanism has recently come into effect that has far-reaching consequences for sectional title owners in that, in terms of the amendment of Section 47 of the Sectional Titles Act 95 of 1986, it is no longer possible to hold members of the body corporate personally liable for body corporate bad debt, provided the members' payments were fully up to date when the initial ruling for debt was made.

According to Donald Curtis of Hofmeyr, "This should discourage unscrupulous developers and managing agents from adding debt to the sectional title willy-nilly when they know full well that the unit would be unable to pay, in a bid to first obtain a ruling against the body corporate and later to add innocent members to the ruling in a plot to recover individual members' sectional title units."

Article on Fin24.co.za and the Sectional Titles Amendment Act