Transfer without levy clearance

One of the sections in one of our Bodies Corporate was transferred to a new owner without the transferring attorneys asking for clearance figures on the levies. How can this happen and what should we do?

With reference to levy clearance we have to go to the Sectional Titles Act; Act 95 of 1986; that was basically stripped of all the Management sections but still remains in effect.

The Act states the following:

Section 15B

(3) The registrar shall not register a transfer of a unit or of an undivided share therein, unless there is produced to him-

(a) a conveyancer’s certificate confirming that as at date of registration-

(i)         (aa) if a body corporate is deemed to be established in terms of section 2(1) of the Sectional Title Schemes Management Act, that body corporate has certified that all moneys due to the body corporate by the transferor in respect of the said unit have been paid, or that provision has been made to the satisfaction of the body corporate for the payment thereof; or

            (Para (aa) amended by Section 19 of the Sectional Title Schemes Management Act, Act 8 of 2011)

  1. bb) if a body corporate is not deemed to be established, no moneys are payable;

So you can see the problem is that the Act does not say that the Registrar of Deeds must be given a levy clearance certificate from the Body Corporate; it states that there must be a Conveyancer certificate (the Conveyancer is the Transferring Attorney).  But if the Conveyancer issues this certificate without getting a levy clearance certificate from the Body Corporate then what we should do is to report this Conveyancer to the Legal Practice Council.