Unpaid levies are a persistent problem for many body corporates in South Africa. As trustees, you have a responsibility to ensure the financial health of your complex, but you may wonder about the legality of certain actions, such as cutting off utilities for non-paying owners.
In general, trustees do not have the legal right to disconnect electricity or water supplies to units with outstanding levies. This is because it is considered an act of spoliation, which is essentially taking the law into your own hands
The Short Answer: No
Why is This the Case?
The Sectional Titles Schemes Management Act (STSM Act) does not explicitly grant trustees the power to disconnect utilities. While the Act allows body corporates to make rules, these rules must be reasonable and cannot conflict with the Act itself.
Disconnecting utilities is generally considered too harsh a measure and could be seen as disproportionate to the issue of unpaid levies.
What Can Trustees Do?
While cutting off utilities is not an option, trustees have several other legal avenues to pursue:
- Issuing Legal Notices: Send written notices to the owners in arrears, outlining the outstanding amount and demanding payment. This creates a formal record of the debt.
- Levying Interest and Penalties: The STSM Act allows body corporates to charge interest and penalties on overdue levies, which can act as a deterrent and encourage payment.
- Applying for a Court Order: In serious cases, trustees can approach the High Court for an order authorising the sale of the unit in execution. This is a drastic measure and should only be considered as a last resort.
- Using the Community Schemes Ombud Service (CSOS): The CSOS is a government body that can mediate disputes between body corporates and owners. They can issue rulings and orders, which can be enforced by the courts.
- Engaging a Debt Collector: If the owner is unresponsive, trustees can hire a debt collector to pursue the matter. However, it’s important to choose a reputable debt collector who adheres to ethical practices.
Important Considerations
- Communication is Key: Maintain open communication with the owners in arrears. A friendly and understanding has better chances of leading to a resolution without resorting to legal action.
- Document Everything: Keep detailed records of all correspondence, notices, and payments. This documentation will be vital if the matter escalates to legal proceedings.
- Seek Legal Advice: If you’re unsure about the best course of action, consult with an attorney specialising in sectional title law. They can provide tailored advice based on your specific circumstances.
While the temptation to take drastic measures against non-paying owners may be strong, it’s crucial to remember that trustees must act within the bounds of the law. By following the legal procedures outlined above, you can effectively address the issue of unpaid levies and protect the interests of all owners in your complex.
Disclaimer: This article is intended for general information purposes only and does not constitute legal advice. It is essential to consult with an attorney for advice tailored to your specific situation.