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Our Services

February 02, 2018

Are your sectional title affairs in a mess (your body corporate owes a fortune in arrear municipal charges)?

You may consider appointing an administrator to halt legal proceedings and negotiate a way out.

The Application to appoint an Administrator for a fixed period with the purpose of rehabilitating the scheme, is brought in terms of section 16 of the Sectional Titles Schemes Management Act.

It is our experience, particularly where there is a large amount outstanding in municipal debt, the Council is more at ease negotiating a settlement with a court appointed Administrator than with Trustees. An Administrator ‘takes the place of the Trustees’ for a period, and as a completely independent third party making all the decisions affecting the scheme (including harsh steps relating to debt collection), removes the stress and pressure that you may currently be experiencing.

An attorney (we can help) would bring an application to the High Court for the appointment of the administrator.

We would require a copy of a current levy roll, bank account balance, latest audited financial statements and a summary from the Trustees of the state of the building in respect of maintenance and repair requirements. We also need to know the approximate amounts currently outstanding to creditors and a copy of the most recent municipal accounts.

Once we have assessed the situation, we will advise you of the legal costs of bringing the Application, as well as an indication of the time it will take before the Administrator is appointed and can begin the rehabilitation process.
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