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2nd Bond application
Hi All
We own a sectional title unit. We have applied for a second bond to do some cosmetic renovations (aircon etc).All documentation has been completed with the attorneys as we are registering the second bond with a reputable financial institution.We have been notified by our Body corporate that we have to pay a fee of R850.00 to get their approval - is this legal?? Please help, maybe my husband and I are just ignorant? But this just doesnt seem kosher. Thanks Es
Replies
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RE: 2nd Bond application
I was not aware that such a fee may be charged in terms of the Sectional Titles Act. I would suggest that you request them to indicate what provision entitles them to levy such a fee. I would be interested to see what their answer is.
RE: 2nd Bond application
Hi
It would seem that your trustees are acting outside the scope of their powers. Unless they come up with a valid reason for levying this "fee" I would not worry if I were you. It would help to ask them to clarify what this charge is for and post the answer here. I'm sure there are many of us who would like to know.
Regards Tony
RE: 2nd Bond application
Sometimes when scond bonds are granted, the bank may ask for an insurance certificate. Some Managing Agents or Broker may charge for this service due to the work involved.
RE: 2nd Bond application
An sectional owner does not have to get the approval of the body corporate before bonding a unit.
As has been suggested, the fee may be for some related service, but this certainly bears investigation. This sounds like a very substantial charge for a copy of the body corporate's insurance schedule and details of the policy!
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RE: 2nd Bond application
Hi
Does anybody know how to dissolve a Body Corporate - we are 4 sectional title units and were forced to register a BC for the insurance purposes - at our GM we decided that each owner is responsible for the own repairs, maintenance & insurance - please let me know if you know how??
RE: RE: 2nd Bond application
Might pay to keep it going - you've probably got the widest and cheapest cover that way!
Mike Addison
RE: RE: 2nd Bond application
Hi
To be classified as an ST scheme the requirements of the STA has to be complied with and certain procedures have to be followed, e.g. the opening of a register (§11) and registration of the plans (§12). So I do not think it could be something which takes place after the event like for instance if the property has to be insured. You should check with the Deeds Office where your "scheme" is registered what the documents say.
RE: 2nd Bond application
Thanks for all the responses. We were told the fee is called a "Consent Waiver" fee - seen as a administritive fee. My next question however is : How does one resign from a body corporate. Is one legally bound to be a member of the body corporate as long as you own a unit (even though it is not an enclosed village setup)? Currently our unit is just a block of units in a the Durbanville area. The only service that the Body corporate renders is: a garden service and water/sewage readings and thats about all. How does one "resign" from a body corporate? Is it even possible?? Pls help - Ess
RE: 2nd Bond application
Hi
Every owner in a ST scheme remains a member of the BC for as long as they own a section. The only way out is to sell the section.
RE: RE: 2nd Bond application
Hi, Esther. Although the Body Corporate has no say in the raising of a bond, they may need to approve the alterations (depending on what you are actually planning).
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