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Interest on arrears written off

By angelique lennox on Wed, 13 Mar 2019 at 21:29

I have a section in a complex with a specific unit arrears including interest about R450000.00 The total complex annual budget is Max R600000. The case has been ongoing for over 4 years. A offer to purchase was accepted by trustees whereby the seller got about R300000 and the Body corporate got about R300000.The trustees and manageing agent decided to write off the interest assume about R150k in order for the deal to go though. This decision was made without consulting the body corporate. The trustees have a restriction of R5000 for unbudgeted expenses.Is it not gross negligence on the part of the trustees to make this judgement call without a special resolution? If the seller got monies, then those monies should have been used to offset debt and interest. The R300000.00 was paid by the purchaser. Do we as owners have any recourse in this loss of revenue? It has also taken 4 years! Can trustees or managing agent make this call? I Think not? Please advise? Surely it is also gross negligence for arrears to equate to 75% of total annual budget?

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RE: Interest on arrears written off

Murray Bennett replied on Mon, 18 Mar 2019 at 00:06

If the scheme hasn't had to borrow funds and incur interest themselves to cover the deficit caused by the outstanding levies, you would not actually be losing by writing the interest off. It's possible that the deal made was the best that could be accomplished without incurring further legal expenses.

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