Levy Collections Durban KZN Estates HOA

Levy Collections Durban KZN Estates HOA. Sectional Title. Complexes. Buildings. Retirment Homes, University Lodging..

Levies are payable as prescribed by certain Laws. The first step in recovering overdue Levies must always be a non-legal attempt. Kredcor boasts a 98% success rate in recovering overdue Levy payments, without any Litigation!  We save our HOA- Clients an incredible amount of time and money; time because the Legal process takes forever and money because we collect 99% of costs from the Levy-payer.

Kredcor operate on a No Recovery No Cost basis; and as per Law we collect the costs from your Levy-payer. 

Kredcor partner with HOA’s and Body Corporates in order to achieve the following:

  • First task is to focus on recovering most, if not all overdue levies into YOUR bank. 
  • Maintain a concsious presence amongst your Levy-Payers that we will act if they do not pay, there by incurring further costs…
  • This will insure a low(er) running overdue-rate for your HOA in future.
  • HUGE savings to your HOA on Legal costs!
  •  We take the strain and stress of conflicting with your owners of your shoulders.
  • We collect into YOUR Bank Account; you get your money immediately!
  • We monitor and manage “special conditions”, such as Sale process, Debt Rescue, Liquidation / Sequestrations, Estates…
  • .We offer preferential rates to our Clients when Litigation is the last resort, and we keep on managing the process.

Levy Collections Durban KZN Estates HOA
Levy Collections Durban KZN Estates HO

Levy Collections Durban KZN Estates HOA 

Protecting & safe-guarding your Reputation

  • Kredcor boasts with an unblemished & verifyable reputation in our Industry!
  • Full Members of  ADRA and The Council for Debt Collectors
  • We comply to ALL laws & regulations pertaining to our Industry!
  • We are registered Vendors for ABSA, Wesbank, Mercedes Benz, SAPOA, UPS… and many more; you do not get and stay there by not being (near) perfect!
  • We are always Professional. Always ethical. Always friendly…. but also always positively persistent in order to protect your interests – getting your money into your account! 

YOU as a HOA or Body Corporate need money (on-time!) to serve your purpose, on behalf of all owners, and ALL owners must be held accountable in order to ensure the smooth running of the Estate to the benefit of all parties involved.

Levy Collections Durban KZN Estates HOA


May a Levy-payer legally withhold payment?

No. A Levy-payer (Home-owner) is permitted by law to pay the applicable levy, as well as approved special levies. They can not refuse to pay any levy because they feel that the HOA owes them money for whatever reason. That would be a seperate matter to be dealt with via the applicable channels. (Through the HOA, arbitration or litigation)

May a Levy-payer request a refund of Levies paid?

No. Unless he can prove that the applicable levy (payment) was unlawfully charged for.  (PMR 45)

Does the payment of levies resort under the National Credit Act?

No, it does not:

  • The (Sectional’s Title) Act stipulates an owner’s obligation to pay levies; there is no “Credit Transaction” involved
  • A HOA has to pay certain expenses on behalf of ALL owners; it is not extending credit.
  • A HAO is not considered to be a Credit Provider, nor the levy-payer a “Consumer” in this regard. 
  • No “Agreement” (concerning eligibility to pay levies, or not) exists between the HOA and an owner; it is governed by the Act. 
  • Furthermore – Interest on overdue levies is paid in conjunction with the Act (Management Rule 31 (6); and not as per agreement between the two parties.
Is Section 129 of the National Credit Act applicable?

Not at all. Nor the actual levies, special levies or interest on overdues resorts under this statute. 

A Levy-payer under Debt Review?

A Lev-payer may not enter the HOA as a creditor. If done, the HOA must summarily enter a request for payment of the outstanding balance.  

Who carries the cost of arrear collection?

According to Management Rule 31(5): “An owner shall be liable for and pay all legal costs, including costs as between attorney and client, collection commission, expenses and other charges incurred by the body corporate in obtaining the recovery of arrear levies, or any other arrear amounts due and owing by such owner to the body corporate, or in enforcing compliance with these rules, the conduct rules or the Act.”

There is no Reason for a HOA to absorb this cost!

Sequestrated or Liquidated Home Owner?

Conflicting High Court cases in the past posed a higher risk on HOA members in the case of liquidation or sequestration of neighbouring owners. Luckily, two recent Supreme Court cases changed that, and lead to collections in these cases to be much easier.

In short, when an insolvent owner’s estate is sold, the HOA can block transfer to the buyer until the arrebar levies are paid.  The arrears, held the Court, have to be paid to the HOA as a “cost of realisation of the property” – in other words, before bondholders and other creditors are paid.  If the sale price is high enough, the HOA will be paid in full before preferential creditors are paid.

Judgments previously delivered: 

The SCA held it was accepted that statutory embargoes served a vital and legitimate purpose as effective security for debt recovery in respect of municipal service fees, including contributions to bodies corporate for electricity and water, and rates and taxes etc.

The SCA found therefore that the embargo registered against the property’s title deed ‘carves out, or takes away’ from the owner’s dominium by restricting its ius disponendi (the right to dispose of a thing). Thus, it subtracted from the dominium of the land against which it was registered and was consequently a real right.

This means:

registered title conditions that prohibit the transfer of residential property without a clearance certificate or consent of a HOA, are thus enforceable in insolvencies and as a consequence the HOA is to be paid prior to any secured creditors.

This was previously not the case.

These judgments placed HOA’s on an equal ground with municipalities and bodies corporate who recovered rates, taxes and levies through provisions of the Municipal Systems Act 32 of 2000 and Sectional Title Act 95 of 1986.

This provided greater security to the members of HOA’s, who are no longer at risk of having to contribute to any shortfalls arising from outstanding levies deemed to be irrecoverable resulting from insolvencies.

Sale – Holding back of certificate?

Absolutely! The generally accepted ranking of preferred creditors are municipalities first, then HOA’s and then banks holding the mortgage, followed by the rest. Sometimes HOA’s sign waivers in lieu of the banks to allow for smoother sale of the property, but this has more often than not proofed fatal, leaving the HOA to take on the fight.

Two recent court cases has put HOA’s back into a position where they can rely on case law to support their right to hold back a levy clearance certificate,  which effectively halts the transfer till levies are paid.

Liquidators wanting to sell a property in execution, now have to settle the levy amounts outstanding with the HOA, or reach an agreement with the HOA before they can sell the property.



Levy Collections Durban KZN Estates HOA