Many property disputes have shown that there are two categories of property developers.

“The majority of developers recognise that, once transferred, most property will have small defects and snags for which they will be responsible and they will fix these at their own cost,” says Grant Gunston, senior director of Grant Gunston Attorneys.

“A small minority, however, will do all they can to reduce their involvement to a minimum from the day the unit is handed over. They simply ignore calls and, if confronted, they blame the occupant for the problem.”

The situation, said Gunston, tends to be particularly serious in sectional title units because, although the developers’ primary deals are with the unit buyers, the body corporate (BC) is responsible for any sections regarded as communal property – and bodies corporate, lacking technical and legal knowledge, may not feel equipped to deal with uncooperative developers.

“The problem here is that often the sums involved are relatively small and not worth going to court over, but the bodies corporate (BC’s) of some 35% of SA sectional title schemes are from the outset under-budgeted for repairs and maintenance, with the result that their units actually lose value.”

Gunston said that every BC should have access to an attorney who should confront the developer immediately with any communal area problems arising in the official snag period if the developer is not willing to deal with these voluntarily.

BC’s should also, he said, make use of a levy finance solution offered by such firms as Baedex Financial Corporation. These ensure that the BC’s cash flow is maintained and the BC can carry out its maintenance and repair duties, thereby enhancing the value of the scheme.

“Few things in property are more disheartening than a sectional title project going downhill and losing value, but with the right consultants and/or managing agents, this can be prevented.

For more information contact Grant Gunston on send an email.

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