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Sectional title corner – What is the maximum arrears interest I can be charged?

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Q

Hi there, I am behind on my levy payments by more than R13,000. My body corporate is charging me 5% in arrears interest which is equal to R650 per month (or R7,800 per year) – on top of our monthly levies which is R1,800. So, effectively, I am paying R2,450 per month in levies. I heard that the arrears interest cap is now in line with the National Credit Act? What does this mean for me now? – Lebo

A

Dear Lebo, you heard correctly. The new Sectional Title Schemes Management Act states that interest on overdue levy amounts may be charged at a rate not exceeding the maximum interest rate per the National Credit Act, that being the rate for incidental credit agreements limited to 2% per month compounded being an effective annual rate of 26.82%.

You can refer the matter to the Ombud.


 Got a burning question? Email david@hometimes.co.za and we’ll be sure to assist you. 


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Who is Karien Coetzee?

Karien Coetzee, national property management consultant at Trafalgar.

Karien Coetzee, national property management consultant at Trafalgar.

Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.

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david.steynberg@gmail.com

David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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