Group: HOA Levies - General Information

Levy Collection by HOA’s

Can a HOA block a sale due to outstanding levies?

YES! The generally accepted ranking of preferred creditors are municipalities first, then HOA's and then banks holding the mortgage, followed by the rest. Sometimes HOA's sign waivers in lieu of…
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What happens in the case of sequestration / liquidation of an owner?

Conflicting High Court cases in the past posed a higher risk on HOA members in the case of liquidation or sequestration of neighbouring owners. Luckily, two recent Supreme Court cases…
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Who is liable for the cost of collecting overdue Levies?

Management Rule 31(5) provides that “An owner shall be liable for and pay all legal costs, including costs as between attorney and client, collection commission, expenses and other charges incurred…
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What happens when an owner goes under Debt Review?

The owner can not include the HOA as a creditor, due to above reasons. A HOA should oppose this, and immediately enter a claim towards the total outstanding amount.
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Does a HOA have to comply to the provisions of Section 129 of the NCA (National Credit Act)?

No. This statute is not applicable to levy collections, nor arrear levy collections.
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Is the collection of levies an incidental credit agreement according the National Credit Act?

The answer is no, because: It is not a credit Transaction; it is stipulated by the Act. The HOA is just recovering budgeted-for expenses it has to pay according to…
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Can an owner re-claim levies paid to a HOA?

An owner cannot lawfully request levies to be refunded to him, unless he can prove that a part or whole of the levies were levied unlawfully by the HOA. (PMR…
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Can an owner legally withhold a levy payment?

An owner can not legally withhold payment  to ‘set-off’ a debt he believes is owed to him by the HOA. It is not allowed to “set-off” one debt for another. That can only…
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