How Estates Can Protect Against Levy Charge Disputes in South Africa

TL;DR

• Always keep levy statements accurate, clear, and supported by documentation.

• Ensure governing documents (management rules, conduct rules) are updated and compliant.

• Communicate levy increases and charges in writing to all owners.

• Maintain full proof of expenses and resolutions authorising levies.

• Partner with a levy collections attorney to handle disputes efficiently.

Why Levy Charge Disputes Can Harm Estates

Levy contributions are essential for covering maintenance, security, and other operational expenses in sectional title schemes and estates. When owners dispute charges, it can:

• Delay payment and cause cash flow issues.

• Lead to legal disputes and additional costs.

• Strain relationships between trustees and owners.

By preparing in advance and ensuring levy charges are beyond reproach, estates can minimise disputes and speed up collections.

Step 1: Ensure Levy Statements Are Accurate and Transparent

Accuracy is your first line of defence against disputes. Levy statements should:

• Clearly break down the charges.

• Show the calculation method.

• Match amounts approved in the annual budget and AGM.

Tip: Keep digital and physical copies of each statement for at least five years. This provides evidence if an owner challenges the charges later.

Step 2: Keep Governing Documents Updated and Accessible

Many disputes stem from owners not understanding the rules. Estates should ensure:

• Management and conduct rules are updated in accordance with the Sectional Titles Schemes Management Act.

• Copies are distributed to all owners and available on request.

• Any changes are properly registered with the Community Schemes Ombud Service (CSOS).

This ensures owners cannot claim ignorance when charges are enforced.

Step 3: Document All Approvals and Resolutions

Before charging special levies or increasing contributions, trustees must follow proper legal processes. Keep:

• AGM and SGM minutes approving levies.

• Written resolutions from trustees.

• Proof of voting procedures.

Having this documentation readily available is critical if a matter escalates to the CSOS or court.

Step 4: Maintain Proof of Estate Expenses

Levy charges should reflect real costs. Estates should keep:

• Supplier invoices.

• Contractor agreements.

• Payment confirmations.

This not only builds trust but also strengthens your case in the event of a challenge.

Step 5: Communicate Clearly and Early with Owners

To avoid unnecessary disputes:

• Send written notices for levy increases well in advance.

• Provide a summary of how levy funds are allocated.

• Respond promptly to owner queries to prevent misunderstandings from escalating.

When to Involve a Levy Collections Attorney

If an owner refuses to pay or disputes a levy despite proper documentation, it’s time to involve an attorney. At Jonker Vorster Attorneys, we:

• Review your documentation to ensure compliance.

• Initiate demand letters and collection proceedings.

• Represent estates in CSOS hearings or court if necessary.

FAQs About Preventing Levy Charge Disputes in South Africa

Can an owner refuse to pay levies if they disagree with how funds are used?

No. Owners are legally obligated to pay approved levies. Disputes over spending should be raised separately, not used as a reason to withhold payment.

How often should an estate review its levy calculation process?

At least annually, during budget preparation, and whenever special levies are considered.

Does the CSOS side with owners or estates in disputes?

The CSOS evaluates evidence from both sides. Estates with clear, accurate documentation have a strong advantage.

Conclusion

By keeping levy records accurate, maintaining strong governance, and engaging a specialist levy collections attorney, estates can protect themselves from disputes and secure the funds needed to operate smoothly.

Contact Jonker Vorster Attorneys today to protect your estate’s financial stability and recover unpaid levies quickly.