Sectional title debt ....

zerocool2009

zerocool2009

Honorary Master
Joined
Sep 4, 2009
Messages
12,971
Reaction score
5,081
Location
Centurion
Who is responsible for owners going from R3K in debt to R200K in 3 years ?

Trustees or the managing agent ?
 
zerocool2009 said:
Who is responsible for owners going from R3K in debt to R200K in 3 years ?

Trustees or the managing agent ?
Click to expand...
It depends what the monthly levy amount is, but do the sums. You will find that the vast majority of the debt is legal fees.
Ask the attorneys involved for a taxed invoice, you will see it reduce greatly.
Ask the managing agent about the "in duplum" rule. If they claim ignorance, claim the interest back from them, they ought to have advised the trustees on the correct amounts of interest to charge, it is a basic accounting function, their core competency and the main reason for their existence in the first place: to collect levies.

On whom is ultimately liable, it depends on the MA's contract, and who appointed the attorneys, the MA or the Trustees.
 
All I can say, the legal and MA just blame the "system" !

The attorney's were appointed by the MA
 
zerocool2009 said:
All I can say, the legal and MA just blame the "system" !

The attorney's were appointed by the MA
Click to expand...
Did the trustees agree (in writing / meeting minutes) with the MA's appointed attorneys? If not, then the MA is fully to blame. Fire them, and institute a civil claim. CSOS can assist with the firing if there are snags in their contract (like quorum for BC members etc.). Get a good attorney to push them to settle, it's in the interests of the BC members.
 
Lets go back to the root cause of the issue, this problem could have been avoided if the owners just ****ing paid their debt, if they could not afford to pay, then sell the property.
 
Whright said:
Lets go back to the root cause of the issue, this problem could have been avoided if the owners just ****ing paid their debt, if they could not afford to pay, then sell the property.
Click to expand...

Very true ! But if someone stops paying for more than 8 years. And the legal system fails (what then) ?

The law now changed in such a way, if someone owe's and its repossed, the owner can specify an amount they want (before it gets sold)

Its actually such a joke !
 
zerocool2009 said:
Very true ! But if someone stops paying for more than 8 years. And the legal system fails (what then) ?

The law now changed in such a way, if someone owe's and its repossed, the owner can specify an amount they want (before it gets sold)

Its actually such a joke !
Click to expand...

I agree, I was a Trustee a couple of years ago, biggest mistake I ever made.
 
RonSwanson said:
It depends what the monthly levy amount is, but do the sums. You will find that the vast majority of the debt is legal fees.
Ask the attorneys involved for a taxed invoice, you will see it reduce greatly.
Ask the managing agent about the "in duplum" rule. If they claim ignorance, claim the interest back from them, they ought to have advised the trustees on the correct amounts of interest to charge, it is a basic accounting function, their core competency and the main reason for their existence in the first place: to collect levies.

On whom is ultimately liable, it depends on the MA's contract, and who appointed the attorneys, the MA or the Trustees.
Click to expand...
this and lol at using anything the managing agents recommend....
 
zerocool2009 said:
Who is responsible for owners going from R3K in debt to R200K in 3 years ?

Trustees or the managing agent ?
Click to expand...
Look I'm not sure what setup they've got there, but we meet once or twice a year with the managing agents and go through the financials with them where owners in arrears are mentioned as well as the steps the managing agents are taking to prevent it getting too bad. At which point they would take legal action against the owner.

I'd say both parties are guilty for being lazy with the details.
 
We had an abandoned unit in our complex a few years back. Owners just disappeared. Tried tracing them via different agencies and never found them. Went to court twice to have the house attached and sold and both times it was thrown out as the debt was too small to warrant the sale of the entire home. Once the debt went past 150K it went through. Unit sold at auction, and somehow the new owner was then liable to settle it. I would have thought it was paid out of the auction proceeds. Would love to know where the money for the unit sale actually went.
 
The auction laws changed a bit ! If a bank or a BC wants to auction it off, the owner CAN reserve an amount for HIM ! (LOL). I know its silly. That is to prevent the owner to walk away with R0 (lol)
 
Cius said:
We had an abandoned unit in our complex a few years back. Owners just disappeared. Tried tracing them via different agencies and never found them. Went to court twice to have the house attached and sold and both times it was thrown out as the debt was too small to warrant the sale of the entire home. Once the debt went past 150K it went through. Unit sold at auction, and somehow the new owner was then liable to settle it. I would have thought it was paid out of the auction proceeds. Would love to know where the money for the unit sale actually went.
Click to expand...
Afaik - auctions you take on everything as is,thats why you need a clear account of what's outstanding and any repairs needed to get value from the auction
 
So what happened at the 3 AGM's?
The financials are presented to the owners every year, so this accumulating debt should have been a huge red flag for all to see. Were the Trustees / MA instructed to take action (mind you they should have anyway)?

Just wondering as in the ST's I own property I have a rule that any unit more than 6 months in arrears at time of the AGM become a specific agenda point that requires action and feedback.
 
It snowballed, and snowballed more, and even more ! And lets say 10 years of snowballing.

Then changing of managing agents (promise the moon and stars)

Then endless excuses why the system isnt working (with no results but endless bills)

LOL
 
zerocool2009 said:
It snowballed, and snowballed more, and even more ! And lets say 10 years of snowballing.

Then changing of managing agents (promise the moon and stars)

Then endless excuses why the system isnt working (with no results but endless bills)

LOL
Click to expand...
Sounds like a "confluence of effluets" as a friend of mine likes to saying. So wondering if any one entity can be held accountable.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X