Body Corporates Can Disconnect Electricity To Complex Units in Arrears With Levies and Utility Bills
If you own a property in a complex and don't pay your levies and electricity bills, you could have your power cut off.
A recent court case, the Johannesburg High Court made it clear that the group in charge of managing the complex (body corporate) has the legal right to disconnect your electricity if you owe them money. However, they must follow the correct legal steps to do this.
It's been a long-standing question whether the body corporate could actually disconnect services for unpaid bills. This case, Body Corporate The Straight v Katisi, looked at both the body corporate's need to manage money properly and the owner's right to have electricity.
In this situation, the owner, Katisi, hadn't paid their levies and electricity bills for over two years. So, the body corporate went to court to get the money owed and permission to disconnect the electricity until everything was paid up, including interest.
The court held that a fiduciary relationship exists between the trustees and the body corporate, which requires the trustees to manage the body corporate’s affairs in a manner that benefits all its members. This duty includes recovery of monthly levies and other charges to ensure sufficient funds for administering the affairs of the sectional title scheme, as well as maintaining the common property within the scheme.
The court also stressed that the body corporate isn't a business trying to make a profit. It relies on owners paying their dues to stay financially healthy. If some owners don't pay their electricity bills, the body corporate still has to pay the main electricity supplier. If they can't get that money back from the owners, the whole complex could end up without power.
The court agreed that allowing the body corporate to disconnect Katisi's electricity was important because not paying was hurting the financial stability of the complex and the owners who were paying.
However, the court also made it clear that the body corporate can't just decide to cut off services themselves. They need to get permission from the court first. If they don't follow the proper legal process, it could be seen as illegal.
So, this court decision confirms that while you have a right to essential services like electricity, you also have a responsibility to pay your share to keep the complex running smoothly. By allowing the body corporate to disconnect electricity (with court approval), it gives them a way to protect the interests of owners who do pay and makes sure everyone contributes fairly.