Page 18 - Blue Valley News 2 2021

ESTATE NEWS

PAYMENT OF ESTATE LEVIES

FOR BLUE VALLEY

HOMEOWNERS

What is a levy? arrangement that both parties will be able A pre-legal notice will be sent to an owner
The levy is a monthly installment paid by to uphold. with arrear contributions due and owning.
homeowners which facilitates the efficient 4. It is important to note that levies are This notice will give an owner a final chance
day-to-day maintenance and management of not a debt that can be written off, thus to settle the arrears without the need for legal
the estate by the HOA. if a payment break from paying levies is action.
granted, you as the owner will still need
What costs does the levy cover? to catch up on the installments at a later Should the owner continue to default on his/
The levy covers the necessary expenses stage. her levy payment, their account is handed
incurred by the HOA in the administration, over to an attorney to litigate on.
upkeep, running and repair of the common What are the consequences of unpaid
property, such as: levies? The attorney will then issue a letter of
1. If you are not in good standing due to levy demand, granting the owner another
• Infrastructure, gardens, common areas, arrears, you will not be allowed to vote at opportunity to either settle the arrears or
insurance, security for the estate homeowner’s meetings such as special enter into a payment arrangement.
• Maintenance and repairs for the common annual general meetings.
property 2. Owners who do not pay their levies If no response is received from the
• Staff wages and salaries, payment of timeously and in full place an unfair homeowner, the attorney will proceed to
contractors, office rental, etc. financial burden on the community of have a summons issued and served on the
homeowners within the scheme, who homeowner.
The levy should also make reasonable are diligently paying their levies. Levies
provision for unforeseen future expenses. play an essential part in ensuring that the Should the summons not be defended by the
HOA continues to operate smoothly in all homeowner, the attorney will apply to have a
Who pays the levies? aspects of management and maintenance; judgment for payment of the levies granted
The homeowners are responsible for paying unpaid levies compromise the integrity and against the owner.
the levy amount. Homeowners, by virtue of condition of the estate because the HOA is
their ownership in the HOA, are bound as unable to meet its financial obligations. This process can result in the owner being
members to the registered Memorandum of 3. The electronic wave access system into the blacklisted for unpaid levies – the ensuing
Incorporation that regulates levy payments. estate may be blocked, where homeowners judgement remains on an individual’s credit
are in arrears with levy payments. Thus, the record for up to five years.
Who decides on the levy amount? homeowner or resident will need to access
the estate via the visitors’ entrance.
This is determined and calculated as per clause 4. Where an owner’s levy account is in arrears Once the judgment is obtained from court,
4.8.10 of the MOI. The directors are required of three months or more, or where there the attorneys will issue a warrant to be
to set an annual budget for every financial is a consistent short payment of the levies executed against the movable property of
year (January to December) to meet all the made, the HOA mandates the managing the owner, that will then be sold on sheriff
capital and operational expenses which they agent to have legal action instituted auction.
reasonably anticipate to the company. Funds against such homeowner for the collection
go towards the attainment of objectives or of the arrear contributions. If the movable property is not sufficient to
the pursuit of company business. settle the judgment debt, the attorney will
evaluate the case and apply to have the
In calculating the levy payable by any What does the arrears collection immovable property attached and sold on
member, the levies are determined by process entail? sheriff auction.
dividing the budgeted expenditure by the When an owner’s levy account is not paid
number of stands. in full by the 7th of the month, interest and The success of the HOA lies in the efficient
debt collection charges will be raised on the management of the estate and largely
depends on each individual homeowner’s
What happens if I am not able to pay overdue amount on a monthly basis. conscientious and committed approach to
my levies due to effects of Covid-19? paying his/her levies.
1. It is important for you to communicate The managing agent is mandated by the
your difficulties to the managing agent. HOA to have legal action intuited against Levies play an essential role in ensuring that
2. The managing agent will request proof of homeowners with arrear levy contributions. an estate is managed and maintained well,
your finances to corroborate the financial and it is up to the individual owner to actively
difficulties. The legal process is damaging, lengthy and participate and contribute.
3. The managing agent will then detracts legal fees that the homeowner is BV
communicate with the HOA to establish an responsible for paying.
16 • Issue 2 2021 • BLUE VALLEY NEWS