Paddocks Press is a monthly free digital newsletter published to educate and update the sectional title community. The issue (Volume 9, Issue 1) has a number of articles of interest, including:
Early Levy Payment Discounts - Prof Graham Paddock
The Carrot and Stick Approach
In sectional title schemes and home owners’ associations it is usual for owners who pay their levies after due date to be liable for interest at a rate set by the trustees and other penalties.
What is not usual, in South Africa, is for the scheme to offer owners a positive incentive to pay their levies before due date. If the interest and loss of voting rights is the "Stick", then the offer of a discount for early payment would be the "Carrot".
In this article, Graham discusses the idea of offering a positive incentive for early levy payment.
Changing All the trustees Between AGMs - Anton Kelly
Can sectional title owners do this?
The prescribed rules specify a number of reasons why a trustee could cease to hold office. Some of those reasons are that the trustee could resign, go crazy, be declared insolvent or be removed from office by the owners in general meeting.
In this article, Anton provides the guidelines to removing trustees before an AGM, he also mentions the difficulties in doing so.
VAT Relative to HOAs and Bodies Corporate - Clint Riddin
Updates Coming into Effect this Year
Clint has previously written about why a home owners’ association needed to register as a VAT vendor where the annual levies exceeded R1m annually. Now with changes that come into effect as from 1 April 2014; home owners’ associations can voluntarily register as a VAT vendor. HOAs can also de-register as a VAT vendor.
In this article, Clint explains the changes and the advantages for HOAs to register or de-register as a VAT vendor.
Thinking inside the box - Blog post - Carryn Durham
Save Sweet Sophie! A Case Study of Trustees Withdrawing Consent
Paddocks received a post on its Facebook wall at the beginning of this month which touched the Paddocks FaceBook Fans and has inspired the Paddocks team to write about the issue - it also inspired The Sunday Tribune.
The question came down to: Once the trustees have consented in writing to the keeping of a pet (in this case a “sweet cat” called Sophie), under what circumstances can such approval be withdrawn?
Paddocks Club Q and A - Paddocks Club Team