Some people find it hard to believe how secure our product is, especially when the returns of Prime plus 3.85% to grow capital, and Prime plus 1.85% to earn an income, are offered. It is actually quite simple. The product has been designed to fit within the safety net cast by various Acts of Parliament to govern the conduct and administration of sectional title schemes and home owners associations.
We have legal opinions from 4 of South Africa’s leading law firms which confirm that the Body Corporate Funding Solutions model works and benefits from statutory support.
As reported by an article in IOL, published 31st January 2025, “In a landmark decision, the Body Corporate of Bondi in Roodepoort has secured a ruling from the South Gauteng High Court in Johannesburg, permitting the sale of a property due to unpaid levies amounting to R50 974.31.
The issue started in October 2018 to May 2019, when the property raked over R50 000 in unpaid levies. When a summons was issued in October 2019, the owners failed to respond. As a result,the court issued a default judgment against them.
Subsequent to that, the Body Corporate obtained a writ of execution against movable property owned by Ndebele and Sithole to reduce the debt they owed. A sheriff went to the property at least two times and was unable to attach any movable property.
In a bid to stop the sale, Sithole sought relief in the high court and referenced Section 26 of the Constitution, arguing that if the house was to be sold, the action infringed upon his right to adequate housing.
However, Judge Brad Wanless dismissed this assertion after establishing that all possible alternatives had been thoroughly examined by the Body Corporate before resorting to the execution of the property sale.
It was said that collecting money through means of attaching movable property also failed.
He reiterated that the execution against a primary residence should always remain a last resort. However, in cases where all other avenues have been exhausted without success, such a measure can be warranted.
The application was dismissed with costs against Sithole.”
The strength of a body corporate to recover unpaid levies is why the Body Corporate Funding Solutions model has suffered zero loss, since inception, over 26 years ago.
The complete article can be read here. https://www.iol.co.za/news/crime-and-courts/court-rules-body-corporate-can-sell-property-over-r50000-in-unpaid-levies-484f7062-ed43-4629-8904-3d9423c444c2
