Frequently asked questions
A plain-language guide for trustees and managing agents, to be read alongside the SCP brochure and the Strategic Partnership Agreement.
STRATEGIC COLLECTIONS PARTNERSHIP
Fees and costs
Our fee is entirely success-based. We earn a percentage of what we actually recover for the scheme, and nothing else – no upfront cost, no retainer and no monthly fee. If a matter recovers nothing, no fee is payable on it, and we invoice only once the money has been received into the scheme’s account.
No. Attorney, court and sheriff costs are not our fees and we do not charge or mark them up in any way. Where a matter moves to the legal stage, the appointed attorney bills the body corporate directly for their professional fees, and any court and sheriff costs flow directly between the scheme and the attorney. We deliberately stay out of that money flow, so you are never paying us a margin on legal costs. The only thing we earn is our success fee on what is actually recovered.
All fees are quoted exclusive of VAT. VAT is added at the applicable rate (currently 15%) and shown separately on every invoice.
The legal stage and the attorneys
No. Most arrears are resolved well before that, during the pre-legal early- and late-recovery stages, and legal action is a last resort used only where pre-legal collection has not succeeded. It is worth knowing, though, that recovering arrear levies is not optional for a body corporate – under the STSMA and the Prescribed Management Rules the trustees carry a mandatory duty to recover what is owed, together with interest and reasonable legal costs, and the courts have confirmed that this duty cannot simply be abandoned or compromised. So where a matter genuinely needs legal action, that process must continue in any event, with or without us.
The body corporate does, and it keeps full discretion. When a matter needs to escalate to legal handover, we recommend a shortlist from our EDC panel – attorneys we have vetted and tested over several years and continue to monitor – and the scheme selects the one it prefers.
No. Our panel includes attorneys who work on different bases – some on a monthly fee linked to the work performed, others on a contingency basis. This gives the body corporate a choice depending on its budget and what suits the scheme’s needs.
It takes the burden of ongoing follow-ups and monitoring off the trustees and managing agent, with a specialised, dedicated team focused on ensuring that each matter receives the attention it needs and progresses as it should.
The legal process has to run regardless; what changes with us is how well it is run. Our team keeps each matter moving, makes sure the correct steps are taken at the right time, and ensures no unnecessary legal fees are loaded onto the scheme or the owner’s account when no work has been done. In practice, that means holding the attorneys accountable so that where the scheme is charged for legal work, that work is actively being done and recoveries are being pursued, rather than a file sitting untouched for months while fees accumulate.
Deceased estate matters are assessed case by case. They can be complex and time-consuming, and often depend on outside parties such as the Master of the High Court and the appointed executor.
We first investigate the history of the estate, establish what steps have already been taken and confirm its current status and progress. Only then do we advise on the right course of action and engage with the attorneys.
Yes. When an owner sells, transfers or relinquishes a unit, we engage the conveyancers, attorneys and bondholders to recover the outstanding levies before or as a condition of transfer, including through the levy clearance certificate process. These matters are tracked and reported on.
No. Appointing an estate agent remains the responsibility of the owner or another duly authorised person, and the agreement does not restrict who may be appointed. We are also not responsible for issuing levy clearance certificates.
Your money, control and reporting
No. Every rand recovered is paid directly by the owner into the scheme’s own nominated bank account.
The body corporate stays in the picture throughout. You keep discretion over attorney appointments and settlement decisions, and we provide full management information on a monthly basis so you always know where things stand.
It makes no difference to the service. A change of managing agent does not interrupt or end the arrangement – we simply maintain continuity of instructions and reporting through the transition.
STRATEGIC COLLECTIONS PARTNERSHIP
