LATEST CASE ON LEVIES

LATEST CASE ON LEVIES

In a recent decision (Koka N.O. & Others v Willow Waters Home Owners Association (Pty) Ltd), the High Court has made a ruling which will have a large impact on HOA when an owner of a unit is either sequestrated or liquidated. In the past arrear levies were dealt with by trustees and liquidators as an administration expense, i.e. these levies were paid upfront and before the bond. This will no longer be the case! Whilst a HOA will still be entitled to refuse to issue a levy clearance certificate where the levies are not paid, if a deadlock arises and the owner is then sequestrated, the HOA is going to suffer losses in respect of arrear levies. In the circumstances it is more important than ever for HOA and their managing agents to carefully monitor their levy accounts and to take legal action as soon as possible if levies are not paid on due date. Contact Tim Chase and Martin Bey should you have any queries.

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