Fines on levies

Fines on overdue sectional title levies are legal according to a recent magistrates' court case in Bloemfontein. Provided the fines were properly approved at a General Meeting and registered in the rules of the Body Corporate at the Deeds Office. Furthermore, trustees could increase fines only after the approval of a general meeting. Body Corporates should rejoice as the imposition of late payment fines is one of the few ways in which they can encourage owners to pay their levies on time.

Nationally there is a serious problem of arrear levies with many buildings suffering from more than 30% of their owners being in serious arrears. They are unable to function effectively and general levies are then unreasonably increased to try and keep them financially afloat.

Full article on Property24.com