When does a levy become arrears?
Levies are due on the first of the month. NAMI applies a seven-day grace period, so an account is formally in arrears from the seventh.
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Levy Collection
Structured collection and arrears recovery for body corporates and home owners associations.
Levies are due on the first of the month. NAMI allows a seven-day grace period, so an account is formally in arrears from the seventh. From there, collection follows a defined escalation: reminders in the first 30 days, a formal Letter of Demand between days 30 and 60, and referral to attorneys thereafter.
Collection on a schedule, not when someone remembers
Arrears are a timing problem before they are a legal problem. An account chased at day 10 is usually recoverable by conversation. The same account at day 120 needs attorneys, costs the scheme money, and may take a year.
Every account follows the same defined escalation, applied consistently. Consistency matters legally as well as practically: selective enforcement is one of the first defences a defaulting owner will raise.
The escalation
- Levies due on the 1st, seven-day grace period, in arrears from the 7th
- Days 1 to 30: automated reminders, then direct contact, with account queries resolved within five business days
- Days 30 to 60: formal Letter of Demand with itemised arrears, accrued interest and a payment deadline
- Day 60 onwards: referral to the scheme's attorneys under the standing collection policy
- Throughout: written payment arrangements offered where an owner engages
Arrangements where an owner engages
Where an owner comes forward wanting to settle, an Acknowledgement of Debt is usually better for the scheme than escalation. An agreed monthly amount goes toward the arrears while the owner also settles each new monthly invoice.
While the arrangement is honoured, legal action is halted and no legal fees accrue. If it is breached without communication, the legal process resumes from where it paused.
Within the law, always
There are lawful remedies and unlawful ones. Cutting electricity or water, revoking access, or withholding services are unlawful without a court order, regardless of how much is owed, and they convert a recoverable debt into a liability for the scheme.
Common questions
Can a body corporate cut off services to an owner in arrears?
No. Disconnecting electricity, water or gas, or denying access, is unlawful without a court order regardless of the amount owed, and exposes the scheme to an interdict and damages claim.
What happens if an owner cannot pay the full amount?
An Acknowledgement of Debt can be agreed, setting a monthly amount toward the arrears alongside each new monthly invoice. While it is honoured, legal action is halted and no legal fees accrue.