A Letter Of Demand Arrear Levies is a critical document in South African property management, specifically designed to initiate formal debt collection proceedings for unpaid levies in sectional title schemes and community housing developments. This document is typically issued when informal payment requests have been unsuccessful and serves as the final notice before legal action is commenced. It must include specific details such as the exact amount owed, calculation of interest, payment history, and clear payment terms, all while complying with South African property and debt collection legislation. The letter forms part of the legal paper trail and may be used in subsequent legal proceedings if payment is not received. It's essential for the document to be drafted precisely as it serves both a legal and practical purpose in levy collection procedures.
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1. Recipient Details: Full legal name and address of the property owner/debtor
2. Reference Information: Unit number, account reference, and any relevant property details
3. Demand Statement: Clear statement that this is a formal demand for payment of arrear levies
4. Amount Details: Specific amount owed, broken down by capital amount, interest, and other charges
5. Legal Basis: Reference to relevant legislation and scheme rules authorizing the collection
6. Payment Terms: Deadline for payment (usually 7-14 days) and acceptable payment methods
7. Consequences: Clear statement of legal actions that will follow if payment is not made
8. Contact Information: Details of who to contact for queries or payment arrangements
1. Previous Communications: Reference to prior warnings or payment requests - include when there has been previous correspondence
2. Payment History: Summary of previous payments or arrangements - include when there's a pattern of default
3. Settlement Offer: Terms for reduced settlement amount - include when authorized to make such offers
4. Interest Calculation Method: Detailed explanation of how interest is calculated - include when interest forms significant portion of claim
5. Without Prejudice: Legal reservation of rights - include when offering settlement negotiations
1. Statement of Account: Detailed monthly breakdown of levies charged, payments received, and running balance
2. Interest Calculation Schedule: Detailed calculation of interest charged on arrear amounts
3. Proof of Debt: Copies of relevant levy statements, resolutions fixing levy amounts
4. Payment Instructions: Detailed banking details and payment reference requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Management
Sectional Title Management
Legal Services
Residential Property
Commercial Property
Property Administration
Facilities Management
Relevant Teams
Legal
Collections
Property Management
Finance
Accounts Receivable
Administration
Compliance
Operations
Relevant Roles
Property Manager
Legal Officer
Collections Manager
Body Corporate Administrator
Sectional Title Manager
Managing Agent
Financial Manager
Accounts Receivable Officer
Legal Administrator
Property Portfolio Manager
Compliance Officer
Trust Account Administrator
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