A Property24 reader asks:
A reader says they sold two flats but had to pay a special levy while selling for work not yet done. Can they get their money back?
We just recently sold two of our flats and whilst we were selling the flats there was a special levy imposed for painting the building.
My husband and I paid a special levy of R9 000 each, however, it has been 2 months and the building has not been painted yet.
We no longer live in the complex and I need to know what rights we have seeing that we paid the special levy as it was stated and the painting has not yet occurred.
I have not contacted the managing agent, however, I need advice on this.
Phil Calothi, owner and Managing Director of the Cape Town based managing agent company, Land and Sea Development Services (Pty) Ltd , advises:
It depends on the manner in which the special levy was raised. The trustees should have spelt out the circumstances pertaining to the levy in their communication to the members, which should have included how and when they were going to use the proceeds.
There is no provision in the Sectional Titles Act stipulating the terms upon which a special levy may be repaid to members. In my opinion, that decision is a trustee responsibility. I would imagine that, should the funds not be utilised for the intended purpose, members would be able to sue for a refund. You will, however, need the advice of an attorney in that regard.
I would recommend, as a first step, that you enquire from the managing agent as to when the painting contract is scheduled to commence.
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