Sectional Title Update With . .
“Momma's don't let your baby's grow up to be
(Sectional Tite ) Cowboys . . . . “
We concede, a strange way to start our weekly Sectional Title Update!
What we are referring to is an article which appeared in a recent online Conveyancing Newsletter lambasting bodies corporate, more particularly certain managing agents, for the excessive and often unjustifiably exorbitant levy clearance fees being charged. Apparently these range from R300 to as much as R800 per clearance figures supplied. No doubt this article will encourage debate amongst our readers, and indeed, this is our aim!
The article then goes on to examine the legality or otherwise of this clearance charge, and the writer states that “it is inconceivable that whilst a local authority charges about R31, a body corporate deems it appropriate”. . . to render such high charges.
Another interesting point raised in the article:
Following on from last week’s update regarding the current wording of section 37 of the Act, which forces the body corporate to collect levies in advance, from the seller, to the end of the financial year prior to issuing a clearance certificate – it appears that certain managing agents now deem it appropriate to charge a fee for “drafting and facilitating” a tripartite agreement between the body corporate, the seller and the purchaser. In terms of this document the parties agree that the seller is only liable for levies until the date of transfer. The writer gives the impression that the charging of this fee smacks of wild west opportunism!
Should you wish to read the whole article, Email us and we’ll forward it on to you with pleasure
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