Homeowners who fall behind on their levies could lose property or vehicles

WHEN you buy into a community scheme whether it's a sectional title development, homeowners association, or retirement village - you cannot run away from your financial obligations.

- ZELDA VENTER

This is according to attorney Johlene Wasserman of VDM Incorporated and a specialist in sectional title law. She warned that not facing one's financial obligations in this regard can have dire consequences.

“We all have to pay our levies - and you don't have to agree to it in writing; you become a member of the community scheme the minute it’s transferred into your name,” she warned. She pointed out that many schemes are on the verge of collapse due to levy defaults. Wasserman said unpaid levies are crippling community schemes throughout South Africa.

The Community Schemes Ombud Service (CSOS) in its 2023/2024 annual report recorded 15 587 dispute applications. Of these, 9 742 were financial issues, dominated by levy arrears and interest disputes. This amounts to about 62.5% of all cases. The CSOS attributes the surge to the tough economic climate and high unemployment.