Can the Body Corporate Sell My Property for Unpaid Levies in South Africa?
- Jonker Vorster Attorneys
- Nov 12
- 5 min read
TL;DR
If you fall behind on your sectional title levies, your body corporate has legal rights to recover the debt, even by selling your property. The process involves formal demands, court applications, and ultimately, a sheriff-led auction under Section 66 of the Magistrates’ Courts Act. However, there are opportunities to avoid this outcome through negotiation, payment plans, or legal intervention. Always act quickly to protect your ownership rights and prevent escalating legal costs.
Understanding the Importance of Paying Levies
In sectional title and community schemes across South Africa, levies are essential to cover shared expenses such as maintenance, insurance, and security. Every owner contributes a portion, ensuring the property remains functional and financially stable.
When an owner stops paying levies, it disrupts the entire scheme. The body corporate is legally obligated to collect outstanding amounts, as non-payment can impact all other owners and lead to the scheme’s financial decline.
Levies are not optional; they are enforceable debts, similar to municipal accounts or mortgage repayments. Ignoring them can have serious legal and financial consequences.
Legal Path to Selling a Property for Unpaid Levies
The body corporate cannot immediately sell your property. The process follows a strict legal sequence under the Sectional Titles Schemes Management Act (STSMA) and the Magistrates’ Courts Act, ensuring fairness and due process.
Step 1: Demand for Payment
When you miss levy payments, the managing agent or trustees must issue a formal demand, usually giving 14 days to settle the arrears. This step satisfies pre-litigation requirements and gives owners a final chance to pay before legal action.
Step 2: Summons and Judgment
If the owner ignores the demand, the matter escalates to court. The body corporate applies for a summons, formally initiating a claim. Should the owner fail to respond, the court issues a default judgment confirming the debt.
This judgment empowers the body corporate to proceed with debt enforcement mechanisms such as attachment or auction.
Step 3: Warrant of Execution
Once judgment is granted, the body corporate may request a warrant of execution, allowing the sheriff to attach and sell property to recover the debt.
While movable property (like vehicles or furniture) is often targeted first, in cases of persistent non-payment or high arrears, the sheriff can attach and sell the immovable property, the unit itself.
Step 4: Section 66 Court Application
Under Section 66 of the Magistrates’ Courts Act, the body corporate must apply to the court for permission to sell the property. The court carefully considers whether the sale is justified, balancing the creditor’s rights with the owner’s constitutional right to housing.
Sheriff’s Role and the Auction Process
The sheriff of the court oversees the entire execution process. After receiving the warrant, the sheriff attaches the property and issues public notices of sale.
These notices must be published and displayed for a set period, ensuring transparency and allowing the owner time to respond or settle the debt.
If the arrears remain unpaid, the property is sold at public auction, and proceeds are used to settle:
Legal and administrative fees,
The outstanding levies and interest, and
Any remaining balance (if applicable) returned to the owner.
Several South Africans have already lost their properties due to levy defaults, reinforcing that this process is not theoretical but actively enforced.
What the Constitution Says
The Constitution of South Africa guarantees the right to adequate housing under Section 26. However, the Jaftha v Schoeman ruling clarified that this right doesn’t protect owners from lawful debt enforcement when due process is followed.
The Constitutional Court determined that while homes cannot be sold arbitrarily, they can be sold legally if:
The debt is valid,
The process is just and reasonable, and
The owner had opportunities to pay or contest the claim.
Body corporates must therefore demonstrate that selling the property is a last resort, pursued only after exhausting other collection methods.
Can You Stop the Auction?
Yes, but time is critical. Once legal proceedings begin, delaying payment only increases costs and risk.
Here are the most effective ways to stop an auction:
Negotiate a Payment Plan
Approach the body corporate early. Many are willing to accept structured repayment plans to avoid litigation.
Pay or Settle the Arrears
Settling the debt immediately halts further legal action. Always request written confirmation from the trustees or managing agent.
File an Objection or Appeal
If you believe the process is unlawful or excessive, you can file an objection or seek a court review before the auction proceeds.
Consult an Attorney
Professional legal assistance can help you navigate your options, especially if you face a Section 66 sale or garnishee order.
Alternative Remedies: Garnishee Orders and Movable Assets
If the court deems a property sale too severe, it may authorise alternative collection methods such as:
Emoluments Attachment Orders (EAOs): Also known as garnishee orders, these allow deductions directly from the debtor’s salary to pay off arrears over time.
Movable Property Attachment: The sheriff can attach and sell valuables, furniture, or vehicles before targeting the home itself.
Bank Account Attachments: In some cases, the court may authorize attachment of funds held in the owner’s bank accounts.
These remedies still carry financial strain, but help avoid the extreme step of property sale.
Legal Costs, Interest, and Other Penalties
In levy recovery cases, the defaulting owner is usually responsible for:
Legal costs incurred by the body corporate,
Interest on overdue levies,
Collection commission and administrative fees.
This means that unpaid levies can quickly escalate, making early resolution far more affordable.
How to Avoid Legal Action
Avoiding levy disputes begins with open communication and financial planning.
1. Communicate Early
If you’re struggling to pay levies, contact your managing agent or trustees before arrears accumulate.
2. Request Payment Arrangements
Body corporates can agree to monthly payment extensions or structured settlements.
3. Review Monthly Budgets
In some cases, levy increases can be challenged if not properly approved at an AGM. Understanding your rights under the Sectional Titles Schemes Management Act helps prevent overcharging.
4. Seek Legal Advice
Legal professionals like Jonker Vorster Attorneys can guide you through the best course of action, whether you’re a debtor or a body corporate seeking to recover arrears.
FAQs About Can the Body Corporate Sell My Property for Unpaid Levies in South Africa
Can a body corporate really sell my home?
Yes, but only after obtaining a court order under Section 66 and following due legal process.
How long does it take before the body corporate can sell my property for unpaid levies?
The process can take several months, depending on the court’s schedule and whether the owner responds to legal notices.
Can I prevent my property from being sold by the body corporate for unpaid levies?
Yes, paying the arrears, negotiating repayment, or filing a legal objection can stop the process.
Can the body corporate sell my property for unpaid levies if I rent my property?
Rent collected can be attached to pay off the arrears if the court authorises it.
Who pays the legal fees in these cases?
The defaulting owner is generally responsible for all recovery-related legal costs.
Conclusion
Falling behind on levies in South Africa can have severe consequences, including the potential sale of your property. The body corporate is legally empowered to recover what is owed, and courts are enforcing this right more frequently.
However, owners have options. Early communication, legal advice, and proactive payment arrangements can prevent matters from escalating to auction.
At Jonker Vorster Attorneys, we assist both bodies corporate and individual owners with levy disputes, recovery actions, and debt management strategies, ensuring fair outcomes under South African law.
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