CONVEYANCING ROLE PLAYERS | THE BODY
CORPORATE AND MANAGING AGENTS
In our last post we looked at the role of municipality in the transfer process. This week we will look at the body corporate and managing agents in the transfer process.
THE BODY CORPORATE AND MANAGING AGENTS
Body corporates exist only in Sectional Title Schemes. Their function is to ensure the effective running and maintenance of the scheme. In certain instances, it is the managing agents who do this on behalf of the body corporate.
A sectional title unit cannot be transferred until a clearance certificate from the body corporate is obtained. This certifies that all levies are paid up and that no outstanding fees are due to the body corporate or managing agent. Where there is a managing agent in place the levy clearance certificate will be issued by this agen.
A common hurdle, when dealing with managing agents occurs when the managing agent changes its name, neglects to disclose this change and submits a certificate in the previous name. In this instance, the Deeds Office will reject the matter call for proof of change of name and request a new levy clearance certificate.
In cases where the body corporate has instituted a special levy, there will be a tripartite agreement to be signed by the seller, purchaser and the body corporate, which will specify that the purchaser shall pay the special levy from date of registration.
It is of great importance that the seller continues to pay the levies to the body corporate up to registration, if not, the body corporate can withhold the clearance certificate. This will result in the transferring attorney being unable to register the transfer and the conveyancer will not be able to hand in his certificate, which is a necessity before the transfer may be registered.
We hope this has been informative and may benefit you when dealing with body corporates and managing agents in the transfer process. Knowing what you’re going to have to deal with often helps to reduce the stress of hurdles and other unwelcome bottle-necks in an already-lengthly paperwork trail!
THE BODY CORPORATE AND MANAGING AGENTS
Body corporates exist only in Sectional Title Schemes. Their function is to ensure the effective running and maintenance of the scheme. In certain instances, it is the managing agents who do this on behalf of the body corporate.
A sectional title unit cannot be transferred until a clearance certificate from the body corporate is obtained. This certifies that all levies are paid up and that no outstanding fees are due to the body corporate or managing agent. Where there is a managing agent in place the levy clearance certificate will be issued by this agen.
A common hurdle, when dealing with managing agents occurs when the managing agent changes its name, neglects to disclose this change and submits a certificate in the previous name. In this instance, the Deeds Office will reject the matter call for proof of change of name and request a new levy clearance certificate.
In cases where the body corporate has instituted a special levy, there will be a tripartite agreement to be signed by the seller, purchaser and the body corporate, which will specify that the purchaser shall pay the special levy from date of registration.
It is of great importance that the seller continues to pay the levies to the body corporate up to registration, if not, the body corporate can withhold the clearance certificate. This will result in the transferring attorney being unable to register the transfer and the conveyancer will not be able to hand in his certificate, which is a necessity before the transfer may be registered.
We hope this has been informative and may benefit you when dealing with body corporates and managing agents in the transfer process. Knowing what you’re going to have to deal with often helps to reduce the stress of hurdles and other unwelcome bottle-necks in an already-lengthly paperwork trail!
