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Arrear Municipal Bills

By Marius Conradie on Thu, 01 Mar 2012 at 18:56

When we bought our flat we unfortunately didn't do the proper homework. Now after the first SGM we were informed about a lot of debt which is owed to the Municipality. I read in another similar post that one can claim your share of the money back from the seller if we can prove that they purposefully withheld such information. This can be a little difficult to prove. The only prove I have which I can think of is some emails between myself the agent who handled to sale and the managing agent. In those emails I was blaming them for withholding information regarding special levies, but not specifically the arrears rates. However the estate agent does mention that she also didn't know about the special levy, in other words the seller withheld this information from her also. Would these emails be prove enough? Can I go see a lawyer with these emails and will they stand up in court?

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RE: Arrear Municipal Bills

Marius Conradie replied on Thu, 01 Mar 2012 at 19:26

One other thing. What is a rates clearance really for, if it does not cover such arrears. They are now telling us we can all be blacklisted because of this.

RE: RE: Arrear Municipal Bills

Julie Steffers replied on Thu, 01 Mar 2012 at 19:54

Hi Marius. I am told that the new National Consumer Act could protect new buyers. I suggest you call the Consumer Commission 086-026-6786 and ask them if you have a legal case before going to attorneys.

RE: RE: RE: Arrear Municipal Bills

Marius Conradie replied on Thu, 01 Mar 2012 at 20:52

Good Idea, I will be calling them tomorrow.

Thanks

RE: Arrear Municipal Bills

Myburgh Brink replied on Fri, 02 Mar 2012 at 15:08

Have you thought about it that at the time of the sale the owner was not aware of the SL either? It is the trustees who are authorised to raise it and not the owners at a general meeting. So when you requested info about a possible SL and nothing was forthcoming it does not necessarily mean someone was withholding information, it just means nobody has been notified yet. As you said in your opening sentence about not doing homework – this is a general problem in ST. Did you have access to the last set of financials? If so it should have shown the outstanding debt. Since the 2005 amendments to the Rules, PMR 37 (2) requires information relating to Municipal debt, specifically, to be included with the AGM notice. Most AGM documentation I've seen lacks this info as it goes hand in hand with PMR 37 (1) and often trustees do not follow up on arrears and showing this makes them look bad.

RE: Arrear Municipal Bills

Peter Vickery replied on Fri, 02 Mar 2012 at 17:45

Hi All - it could be that the BC was in arrears at the time that the individual rating of sections came into effect. The municipality could then issue a rates clearance on the section as the rates iro that section were up to date at the time.
As stated in a previous posting - the financials should have revealed that there was money owing to creditors and this would obviously need to be recovered at some point in the future - in order to pay off these debts.

Regards...Show More

RE: Arrear Municipal Bills

Marius Conradie replied on Fri, 02 Mar 2012 at 18:59

The person I bought from lived there for about 6/7 years. When we first met he told us
their might be a special levy for repairs of about R40,000.00. He went on to explain that
money was stolen 3years ago and that is why they havent had money to do any repairs
for that time. This was in August. They had their AGM right after we signed the OTP
and we then met 2 months later to confirm what has transpired in that meeting regarding
the special levy. He then told us the R40,000.00 was raised and he will pay. No mention of anything else. Now since then I have obviously done my homework and this is what
really happened: The owner of the managing agent attended that AGM to make it clear
to all the owners at that time that if they dont raise a special levy and do a hefty increase on the normal levy, that all the owners could be blacklisted, because of the arrear rates and the building which requires maintenance. They raised a R20,000.00 special levy for repairs and the chairperson actually used his R20k to pay the municipality so that
they wont take legal action and to draw up an agreement with them to pay the money
off. They also raised a R700 reoccuring special levy for repairs and arrears, which I am
currently paying. I have taken that up with the managing agent, but he says that they
didn't have a final amount required for the repairs (and they still dont) so that is why
they didn't include that in the levy clearance. They also increased the normal levy from
about R500 to R900 and this was also done to cover the arrears. As you can see, they
haven't drawn up a clear plan of action and the whole situation has been really frustating
and difficult to sort out. Besides the money issues I have plenty other issues which I am
dealing with and trying to sort out.

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