Santam has taken a major shareholding in a new company now launching a unique financial product tailor-made to alleviate the serious liquidity problems experienced by South Africa’s bodies corporate (BC) in the sectional title property sector.
Stilus (an acronym for Sectional Title Levy Underwriting Security), the new service, undertakes to fund bodies corporate (BC) in which some members have fallen behind in their levy payments and to take full responsibility for collection of those arrears from the defaulters.
“Liquidity problems in the sectional title industry stem from bodies corporate (BC) being unable to obtain short term loans because they have no assets which financial institutions can use as security. When BC members omit to pay their levies on time, the BCs find themselves in a situation where they cannot pay for municipal services such as water, refuse collection and sewerage disposal, nor can they maintain their properties as they should,” says Charles Coetzee, managing director of Stilus.
“A sectional title complex that is unable to pay its way will rapidly lose value, to the detriment of all involved, including those members who have kept up to date with their levy payments.”
Stilus will be marketed solely by insurance brokers and their target market will be South Africa’s 60,000 sectional title schemes, of which roughly 30% experience liquidity problems.
Stilus’ is a standalone insurance policy, which is available to all BCs whether or not they are Santam clients.
“To qualify as a Stilus client, it is essential that the BC’s financial statements be brought up to date and that there is clear evidence of good governance.”
From the time that a BC signs an insurance policy with Stilus, all the monthly levies payable by members will be guaranteed. Trustees and managing agents will be able to lodge claims in respect of defaulting members and receive payment within seven days of their claims being recognised. All the costs involved in the collection of arrear levies will be borne by the defaulters and not by the BC.
Since the inception of the Sectional Title Act, the collection of arrear levies, said Coetzee, has been an onerous and costly task for BCs and their managing agents. “The introduction of the Stilus service has the potential to make their lives easier and to relieve them of the serious financial difficulties with which many are not equipped to cope.”
Stilus is being launched at a morning seminar (8:30am to 12:15pm) on Tuesday 10th August, 2010. The venue is the Bytes Conference Centre, 241 Third Road, Midrand, Johannesburg.
As seating is limited, Stilus would appreciate those wishing to attend to respond as fast as possible by email to vicky@stilus.co.za or by telephoning 021 914 9002. Confirmation of acceptance will be forwarded to all guests and should be presented at the seminar.
Follow up seminars are now being organised by the Stilus marketing team in Cape Town and Durban.
The details of these will be publicised in the press.
For more information contact Michael Garvin on 021 914 9002 or click here to visit the website.
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