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CSOS case files: Managing agents pay for repairs before insurer does


The Permanent Trust Property Group of the Western Cape has acknowledged unconditionally in a settlement signed at a CSOS dispute resolution hearing that it had contravened the Sectional Titles Schemes Management Act of 2011 by making a payment to Dr Johannes George Coetzee for repairs to a leak in his apartment in the Oceans Terraces unit before the insurers had made payment.

The management company also acknowledged that it had erred in unquestioningly following the instructions of the chairperson of the body corporate in contravention of its mandate and the relevant act.

In terms of the settlement agreement achieved before the adjudicator/conciliator, Ms Hannchen Louw, the Permanent Trust Property Group “undertakes to advise of its staff members, the National Association of Managing Agents (of which it is a member) and the Estate Agency Affairs Board of the transgression recorded herein such that it may serve as a warning and education to managing agents and their staff”.

The application for dispute resolution was brought by Dr Coetzee after he had received the payment from the management company on instruction of the-then chairperson. In addition to contravening the relevant act, Ms Louw said in summarising the elements of the dispute that authorisation of the payment did not “contain the requisite approving signatures, was made by way of a loan when loans are prohibited and was made for a purpose not sanctioned by law”.

“This payment is an example of a number of incidents of this nature that have occurred over the years that the respondent has managed the Ocean Terraces Body Corporate and no acknowledgement of wrongdoing has even been forthcoming from the respondent,” Ms Louw said.

Ms Louw ruled that Dr Coetzee “may, to the extent he wishes to, make this settlement and acknowledgement by the Respondent known to the trustees and members of the Body Corporate of Ocean Terraces”.

To read the full report of the application and the adjudication order, see case 653/2017 on the CSOS website.

Words: Blake Wilkins


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