With successful launches attended by over 300 delegates in Gauteng and Cape Town now behind them, the marketing team of Sectional Title Insurance Levy Security (Stilus) policy is focusing on promoting the new insurance policy throughout KwaZulu-Natal.

A launch function will take place from 8:30am to 12:00 noon at the Blue Waters Hotel, 175 Snell Parade, North Beach, Durban on Tuesday September 7. All insurance brokers, managing agents and trustees are invited to attend.

In addition to the Stilus presentation, Barbara Schingler of the National Association of Managing Agents will discuss matters of interest to the sectional title industry. She will be followed by Tertius Maree, a member of the Stilus team and a recognised sectional title specialist.

Charles Coetzee, chief executive of Stilus, says the sectional title industry is now being given the financial relief and breakthrough which has been needed for a decade or more.

The Stilus policy, which is underwritten by Santam, is tailored to assist sectional title bodies corporate whose members have fallen behind on their levy payments. Once policies have been implemented, immediate catch-up funding is provided to bodies corporate to cover shortfalls in their levies.

Using Coetzee’s experience, acquired over many years in sectional title management, Stilus then undertakes to collect the arrear levies from the defaulting members – at no cost to the bodies corporate. However, the bodies corporate are the insured bodies and are responsible for paying the Stilus premiums. When apportioned, premiums amount to approximately R10 a month per unit, in return for which the body corporate trustees will have complete peace of mind on financial matters.

Coetzee says Stilus is revolutionary in that, unlike most other sectional title “rescue” packages, it is not a loan to the body corporate and it places few obligations on them.

“The premium is almost ludicrously small considering the immense benefits derived by bodies corporate. This has been a big surprise to the sectional title industry, which had expected far higher Stilus premiums.”

Stilus marketing director, Michael Garvin, says illiquidity has been the curse of South African sectional title bodies corporate.

“All too often, schemes, which were perfectly satisfactory when launched, are allowed by inexperienced trustees of bodies corporate, and in some cases inefficient managing agents, to fall behind on levy collection and consequently property maintenance and municipal services payments. This rapidly results in the properties losing their attractive appearance and intrinsic value and in some cases the downward spiral eventually results in substantial losses to all parties concerned.

“There are about 60 000 sectional title schemes in South Africa with 800 000 units, which provide accommodation for over 3,5 million people. If bodies corporate are properly administered and managed the sectional title schemes can appreciate faster than other types of residential accommodation, but if they are neglected they also lose value faster.”

“Stilus has the potential to remedy the very unhealthy sectional title problems that are now rife throughout South Africa. We estimate that over 30% of sectional title schemes are behind on payments. But the initial response to Stilus has been so good that we now expect to be serving 3 000 schemes by the end of the first year of operation and to increase this exponentially year by year,” says Coetzee.

Send an email to Vicky Vermaak at vicky@stilus.co.za, or call Michael Garvin on 021 914 9002 or 083 345 6342.