Arrear levy collection reports: A checklist on what to include in the initial “hand over” instruction to attorneys

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Category: Funding and Treasury, Legal and Advisory

Arrear levy collection reports: A checklist on what to include in the initial “hand over” instruction to attorneys

In continuation of our efforts to empower community scheme managers with essential knowledge for effective arrear levy collections, this blog post serves as a follow-up to our previous discussion on common legal terms used in collection reports. Building upon the foundation laid in that post, we delve deeper into the practical aspects of instructing attorneys for arrear levy matters.

Recently, STS received inquiries from managing agents seeking clarity on what information should be included in the instruction to attorneys for this purpose. While there’s no standardised checklist, we’ve compiled a comprehensive guide outlining key elements to streamline the process and potentially reduce legal fees.

1.  Debtor’s full name and identity number:

Legal proceedings, such as issuing a summons, hinge on correctly identifying the debtor. Providing accurate personal information ensures proper citation and expedites legal proceedings.

2.  Debtor’s contact details:

Enabling direct communication between the attorney and debtor upfront can facilitate swift resolution or agreement on payment arrangements, potentially mitigating legal expenses.

3.  Proof of debtor’s ownership of the unit:

Obtain a report from reliable sources like Lightstone or Lexis Windeed confirming the registered owner of the property. Including this documentation from the outset can pre-empt additional search fees and expedite the process.

4.  Copy of trustees’ resolution raising interest on arrear levies:

Anticipate court queries regarding interest on arrear levies by attaching a copy of the relevant trustees’ resolution to the summons, pre-empting delays and inquiries.

5.  Copy of the debtor’s levy statement:

Providing a breakdown of the outstanding amount can address court queries promptly, ensuring clarity and transparency in the legal proceedings.

6.  Summary of relevant interactions with the debtor:

Streamline communication and avoid duplication by furnishing attorneys with a concise summary of interactions with the debtor. This empowers attorneys to assess the situation efficiently and minimise unnecessary correspondence, thereby saving time and legal fees.

7.  Minimum requirements for repayment arrangements:

Anticipate debtor requests for repayment arrangements by stipulating minimum requirements upfront. Clear instructions empower attorneys to advise debtors promptly and make informed decisions regarding legal proceedings.

8.  Copy of preferred consolidated report template:

Facilitate efficiency and consistency by providing attorneys with your preferred consolidated report template. This ensures the inclusion of essential information and avoids additional charges for individual reports.

To assist in implementing these guidelines effectively, we’ve compiled a downloadable checklist here, which can serve as a valuable resource for discussions with your legal service provider and be added to your management file.

Navigating arrear levy collections requires diligence, clarity, and effective communication. By equipping legal professionals with comprehensive instructions from the outset, trustees and managing agents can streamline the process, reduce costs, and achieve swift resolutions for all parties involved.

For expert legal advice and guidance, reach out to our team who are standing by!


Commercial Legal Professional

Suzanne de Villiers, LLB, UKZN, Admitted Attorney.  Suzanne was a practising attorney for 12 years specialising in the areas of sectional title and property law before making the move to join the Commercial Department.