Flat owners’ victory against Body Corporates wanting to force owners to settle a levy debt of about R50 million

Some of the flat owners who attended the Community Scheme Ombud Service’s press briefing on Thursday. Photo supplied

Some of the flat owners who attended the Community Scheme Ombud Service’s press briefing on Thursday. Photo supplied

Published Feb 11, 2022

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DURBAN - There was jubilation among flat owners around eThekwini after the Community Scheme Ombud Service (CSOS) dismissed the application by the Administrator of various Body Corporates to force owners to settle a levy debt of about R50 million.

The Body Corporates through their Administrator, Tingaweb PTY LTD, had lodged the complaint with the CSOS in 2018 to force flat owners to settle the debt with interest but the CSOS dismissed the application.

In the judgement handed down on Thursday, the CSOS said the occupiers of the flats were not consulted when the Administrator was appointed.

Another reason cited by the panel was that the flat owners or occupiers were not aware of an active Body Corporate since occupying the schemes.

The CSOS’ head advocate Boyce Mkhize advised the parties to sit down and resolve the matter among themselves.

Maureen Rambhadursing, a director of the Poor Flat Dwellers Movement, hailed the judgement as victory for social justice, saying if the order had been in favour of the Body Corporates it would have meant that many flats would be repossessed and sold by the applicants.

She said the biggest problem facing people living in flats or owning flats was that they fell under the Sectional Titles Act which allowed Body Corporates to bill levies for everyone, even those whose accounts were up to date.

She said the disadvantage of having a sectional title deed was that if there were residents who were not paying, for example for the service of the lift, the Body Corporates could demand the money from everyone which was unfair to the people who had paid.

The panel of Adjudicators included William Nicholson, Mpumelelo Sibisi and Asha Sewpersad.

The Body Corporates were represented by attorney Jos Van Heerden who said he and his client would study the judgement and see whether they wanted to appeal it or not.

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