Can trustees send final demand letters for arrear levies without owner consent?

In sectional title schemes, the issue of unpaid levies quickly becomes a point of friction. But one question that often arises from owners, especially those on the receiving end, is this: “Can the trustees send final demand letters without the owners’ approval?

The short answer is: Yes. And in fact, they must.

Let’s unpack why levy collection is a trustee responsibility, what owners can do if they dispute an amount, and how to resolve issues before they escalate.

Under the Sectional Titles Schemes Management Act^[1] (“the STSMA”), trustees are required to ensure the financial stability of the body corporate. One of their key responsibilities is the collection of levies to fund:

• Maintenance and repairs
• Insurance premiums
• Security services
• Municipal accounts
• Reserve fund contributions

To meet these obligations, trustees must take reasonable steps to ensure levies are collected on time and in full, including sending final notices or demand letters, or instructing that they be sent, when arrears arise.

Contrary to what some owners may believe, trustees do not need to consult owners before sending a final demand letter. This is not a matter that requires an AGM resolution or owner input.

Issuing letters of demand is part of routine debt recovery — much like a landlord following up on unpaid rent. It’s an administrative function necessary to protect the interests of all owners in the scheme.

If you’ve received a final notice and believe the amount is incorrect, here’s what to do:

1. Request a statement of account

Ask for a detailed levy statement from the managing agent or trustees. This should include all charges, payments, and arrears.

2. Review the budget and minutes

Check the approved budget and AGM minutes to see how levies were calculated and whether any special levies were raised later by trustee resolution.

3. Raise the concern in writing

If you still believe there is an error, communicate this in writing and request clarification or correction.

4. Approach CSOS if needed

If the issue remains unresolved, you can lodge a dispute with the Community Schemes Ombud Service (CSOS). Under s 39 of the Community Schemes Ombud Service Act^[2] (“the CSOS Act”), the CSOS can review financial matters and issue orders where appropriate.

Delays in levy collection can lead to:

• Cash flow problems for the scheme
• Delays in maintenance or services
• Unfair burden on paying owners who effectively subsidise those in arrears
• Escalation of legal costs — including interest and collection fees

By acting swiftly and within their authority, trustees are not being heavy-handed — they’re doing what’s legally required to protect the financial health of the scheme.

Final demand letters for arrear levies are not personal attacks or signs of overreach. They’re part of a necessary, legal process to ensure that community schemes remain functional and financially sound. 

Trustees do not need owner permission to send them, but they do need to ensure the charges are accurate and fairly applied. And if you disagree with the amounts, you have the right to ask questions, request records and, if needed, seek relief from CSOS. 

The key is to act early, communicate clearly, and engage the process before legal action becomes unavoidable. 

Our expertise in arrear levy collection makes us the partner for your community scheme. Contact us today to enquire about our solutions.

FOOTNOTE:

^[1] Act 8 of 2011.

^[2] Act 9 of 2011.