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Complex liquidation

By Christo Van der Nest on Tue, 06 Mar 2012 at 08:58

I am a owner of a unit in a complex of which the developer is the owner and trustee of the majority of the units in the complex. the bond of my unit is paid mothhly to the bank and p to date.
Currently the developer and owner of the majority of the units are being liquidated.

what are my rights as an owner of a unit in this complex?
What can i do to protect my property?
THANK YOU,
Christo

Replies

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RE: Complex liquidation

Anne Greening replied on Tue, 06 Mar 2012 at 12:26

Hi, Christo. Have all the units in the development been built, or is building still in progress?

RE: Complex liquidation

Christo Van der Nest replied on Tue, 06 Mar 2012 at 12:32

Hi, all the units have been build. Most are currently occupied. A body corporate managing company has been and is still administrating the property.
Regards,

RE: RE: Complex liquidation

Anne Greening replied on Tue, 06 Mar 2012 at 13:15

Hi. Christo. In that case the developer is now no more than another section owner (albeit of a large number of sections). When you refer to a "body corporate manage company" I presume you mean that the BC employs a Managing Agent. Have you asked the Trustees what steps they mean to take to ensure payment of the levies by the ex-developer? He may have been a trustee, but his has now ceased to hold office, under PMR 13, if he has surrendered his estate as insolvent. If your MA is worth his salt, he should now be advising the Trustees on their course of action. If he does not do so, I suggest that they should consult a lawyer for assistance.

RE: RE: RE: Complex liquidation

Gerhard Bezuidenhout replied on Tue, 06 Mar 2012 at 16:49

The situation leaves you with only TWO concerns:
(1) That contributions from the liquidated estate will fall in arrears, thereby forcing your BC in cash flow difficulties and putting strain on resources to pay current expenses. Monitor the situation closely and communicate with the liquidator to ensure that a levy clearance certificate is honoured at the time when transfer of sections from this insolvent estate is registered;
(2) That the liquidator will dictate the scenario at your scheme general meeting(s) by a vote based on the larger holding. Note that trustees have one vote each at a trustee meeting, and the chairman a deliberate vote. See to it that the trustees are appointed and hold office in terms of the Law.

Your MA should be able to assist.

RE: Complex liquidation

Sur Ugo replied on Wed, 07 Mar 2012 at 09:46

Hi

About your rights, you may have answered your dilemma yourself. The developer is in majority....Show More

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