Help with Developer and setting up of Body Corp

[yebocan]

Need some advice:

So last year (2015) bought a unit, in a revamped building, transfer occurred in Dec. Basically, can be viewed as a new development, hence no body corp existed. Since Jan, I have been trying to get info on the state of the body corp , from the developer...when initial meeting will be held, proposed levy structure, etc...all I am getting,...we are busy setting up the the management company, that will be handling the body corp. business. Just got off the phone now again, with them ..."give us another month or so...."In the meanwhile, no levies are being collected. Although, I get the assurance, that all insurance and municipal bills are being paid. Some assistance with this crap would be highly appreciated.

 

[snail]

Im the chairman of my body corporate. I had also bought into a new development. see below for law.

Sectional Titles Act, 95 of 1986

36 Bodies corporate
(1) With effect from the date on which any person other than the developer becomes an owner of a unit
in a scheme, there shall be deemed to be established for that scheme a body corporate of which the
developer and such person are members, and every person who thereafter becomes an owner of a unit
in that scheme shall be a member of that body corporate.

(7) (a) A developer shall convene a meeting of the members of the body corporate not later than 60 days
after the establishment of the body corporate, the agenda of the meeting to be as prescribed in the
management rules, at which meeting he shall furnish the members with‐
***************(i)**a copy of the sectional plan;
***************(ii)**a certificate from the local authority to the effect that all rates due by the developer up to
the date of the establishment of the body corporate have been paid; and
***************(iii) proof of revenue and expenditure concerning the management of the scheme from the date
of the first occupation of any unit until the date of the establishment of the body corporate.
*****(aA) The developer shall pay over to the body corporate any residue, as revealed by the proof referred
to in paragraph (a) (iii).
*****(b) A developer who fails to comply with any provision of paragraph (a) or (aA), shall be guilty of an
offence and liable on conviction to a fine or to imprisonment for a period not exceeding two years.

 

[PotatoGuardian]

I had the same issue. I'm not sure what you can do legally but I just managed to save my levies every month (they gave me an estimate when I bought). I do know that they can only charge you levies once a body corporate has been established.

Maybe the developer is paying for the rates but I did read/hear somewhere that the developer can claim back from body corporate at a later date (unsure if this is a fact).

My best advice is to nag constantly and/or find out from municipality if you can see whether accounts are being paid

 

[yebocan]

Im the chairman of my body corporate. I had also bought into a new development. see below for law.

Sectional Titles Act, 95 of 1986

36 Bodies corporate
(1) With effect from the date on which any person other than the developer becomes an owner of a unit
in a scheme, there shall be deemed to be established for that scheme a body corporate of which the
developer and such person are members, and every person who thereafter becomes an owner of a unit
in that scheme shall be a member of that body corporate.

(7) (a) A developer shall convene a meeting of the members of the body corporate not later than 60 days
after the establishment of the body corporate, the agenda of the meeting to be as prescribed in the
management rules, at which meeting he shall furnish the members with‐
***************(i)**a copy of the sectional plan;
***************(ii)**a certificate from the local authority to the effect that all rates due by the developer up to
the date of the establishment of the body corporate have been paid; and
***************(iii) proof of revenue and expenditure concerning the management of the scheme from the date
of the first occupation of any unit until the date of the establishment of the body corporate.
*****(aA) The developer shall pay over to the body corporate any residue, as revealed by the proof referred
to in paragraph (a) (iii).
*****(b) A developer who fails to comply with any provision of paragraph (a) or (aA), shall be guilty of an
offence and liable on conviction to a fine or to imprisonment for a period not exceeding two years.

Thanks snail...good starting for me ...thanks!

 

[yebocan]

I had the same issue. I'm not sure what you can do legally but I just managed to save my levies every month (they gave me an estimate when I bought). I do know that they can only charge you levies once a body corporate has been established.

Maybe the developer is paying for the rates but I did read/hear somewhere that the developer can claim back from body corporate at a later date (unsure if this is a fact).

My best advice is to nag constantly and/or find out from municipality if you can see whether accounts are being paid

That is exactly what I am doing...making provision in my monthly budget for levies...but can not handle this "slap gat" approach...as per above, developer is liable till the body corp takes over...at least, I now have peace of mind, that insurance plus running cost are being taken care of ...

 

[PotatoGuardian]

I know the feeling. My neighbour volunteered to be chairman and getting him to find a managing agent took 5months! Eventually I found a place and kept nagging till it was done. Which happened last week. I've been living there since Aug and still have not paid levies. BO was established in Oct

 

[snail]

Thanks snail...good starting for me ...thanks!

No Problem

Its simple. just send them an email and refer them to section 36 of the sectional titles act, subsection 1 and 7 (As referred to in previous post) and ask them if they understand those sections and the consequences for them if they dont comply. Tell them if they fail to comply with those sections then you will institute legal action in line with those sections to ensure compliance with the legislation governed by the state.