Take the stress out of sectional title levy arrears

At Stratafin, we take the stress out of sectional title levy arrears by offering our clients real levy debt management solutions to help restore Body Corporate’s or HOA’s financial balance sheet and overcome resident/owner conflict.

By purchasing historical arrear levies from our clients, we take the risk and cost out of collection away from them, giving them immediate access to cashflow. We are backed by investment giant, Medu Capital, and our expertise has afforded us an exceptional track record in the South African Sectional Title and Homeowner’s Association industry. This experience makes us uniquely qualified to offer streamlined, tailor-made solutions to help our clients conquer their financial challenges and achieve their long-term vision.  

Embracing the new normal

Lockdown has altered the way people and businesses interact with their staff and clients not just in South Africa, but the world over. We’re no different but we have used this pandemic as a way of streamlining our operations and finding better and faster ways of engaging with our clients but still maintain Covid-19 protocols at all times.

We have embraced technology and have found that meetings, albeit virtually, have become more efficient, less time consuming and cut out harassing traffic jams and ‘down’ time.  

Our virtual workspaces provide us with updates in real time, streamlining communication and even give us the opportunity to attend AGM’s in order to answer pressing questions that Trustees and owners may have directly. We further introduced Click & Sign, making electronic signing of documents fast and easy, finalising contracts in a matter of hours.


Our country is going through an unprecedented time of hardship, both emotionally and financially and our economy is straining under the pressure. Compassion and understanding during this period is all important for us as a society to survive. The questions is what can and can’t you do legally?

What is a trustee’s statutory duty?

Trustees have a statutory duty in respect of Section 7 of the Sectional Titles Schemes Management Act or STSMA, to raise and collect levies as well as maintain the common property with such funds. This duty cannot be circumvented by the making of a resolution, even if the trustees unanimously agree. In turn, however, members are obligated to pay levies in respect of the Act, and as such the obligation is not contractual but ‘ex lege’, meaning by virtue of the law of our country. Trustees of a Sectional Title are bound by the STSMA to carry out the functions in terms of the Act. The Lockdown unfortunately does not detract from this duty. 

What to do when owners confront the Body Corporate with a request to reduce or suspend the payment of levies during the lockdown because they don’t have income?

Payment holiday 

Trustees can agree to give owners that apply for a payment holiday an extended period to pay the levies and delay taking legal action against owners for the agreed period.   

Suspension of Interest 

The raising of interest on arrear levies is done through a Trustees’ Resolution in respect of Rule 21(3) of the Act. It can be resolved to suspend interest for the extended period of payment and by doing this, greatly alleviate the burden on owners who are struggling to pay levies. It must be cautioned however that this new resolution will suspend interest on all arears and not only COVID – 19 arrears.

Recalculation of Levies 

Trustees can have the levies recalculated over a different period which would allow for a general amnesty, however, we must warn that this would result in the monthly levies increasing for the remainder of the financial year. This can only be done if there’s sufficient cashflow to make payment of the monthly expenses out of the funds at hand on behalf of the home owners/residents. This option should not be easily taken as it will stop the total inflow of funds during the general amnesty.

Stratafin’s approach to debt management Our business model allows us to step in and assist by providing immediate cash flow to Body Corporates and Homeowner Associations by purchasing their arrear levy book. Stratafin’s model is not a loans-based model but operates on professional financial services principles. Contact us for an obligation-free quotation or to explore how we can help you.   

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