Rental Defaulters – Landlords Knocking!

Recent High Court decisions brought good news for landlords and body corporates.  The decisions held that defaulting sectional title owners and tenants of leased property cannot hide behind the debtor protection provisions of the National Credit Act.

In summary, the NCA debt counselling process, with its inherent delays and risks for the creditor, does not afford protection to:

• Sectional title owners in respect of arrears levies
  (Dlamini v The Body Corporate of Frenoleen (AR 611/09) [2010] ZAKZPHC 6)
• Tenants of leased properties – in respect not only of arrears rentals, but also associated utility charges (rates, electricity, water, sewerage etc).
  (Pareto Limited and Others v Kalnisha Sigaban t/a KS Flowers N More (A3096/09) [2010] ZAGPJHC 21)

(Reference Saflii)