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Service Fee

By Jeff Westwood on Wed, 11 Apr 2018 at 15:22

The BC I refer to has predominantly consisted of developer and family. Recent changes made and a private owner appointed as trustee with other trustees including the chairman, who is the developer at managing agent.

A service fee is collected on the levy statement from owners and paid as a journal to another internal company in the operation.

No justification has been granted at all on the spend of this money, except for saying it is for water, insurance and UNCOMMON property? How do we resolve this hefty unjustified cost which is not part of the levy. The owners are told they have to settle this until otherwise agreed, but they challenge was set at the last AGM and no justification has been given.

Surely the BC has to be the payer of the costs and not hand to another company within the group to pay, which is not a managing agent, or a service provider?


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RE: Service Fee

Murray Bennett replied on Sun, 15 Apr 2018 at 01:04

Sectional Titles Schemes Mangement Act - regulations [full copy under library on this page]
Contributions and charges
25 (5) The body corporate must not debit a member's account with any amount that is not a contribution or a charge levied in terms of the Act or these rules without the member's consent or the authority of a judgment or order by a judge, adjudicator or arbitrator.

RE: Service Fee

Jeff Westwood replied on Tue, 17 Apr 2018 at 11:39

Thanks for the info Murray.

RE: RE: Service Fee

Jeff Westwood replied on Fri, 04 May 2018 at 14:56

Hi Murray, are you able to tell me legal implications of a BC that has not registered with CSOS please? What can an owner do?

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