With our combined Property Management and legal experience, we have learned first-hand that not all Schemes are either good candidates for Levy Finance and as such we provide an unfinanced Levy Collection service to these Schemes.

With the unfinanced Levy Collection service our in-house legal team manages the collection of all levy debt owing to the scheme. We, inter alia,  attend to the pre-legal collection; oversee and instruct an external panel of attorneys; report to the Managing Agent and Trustees on a monthly basis; attend regular meetings with the Trustee and the Managing Agent to go through legal updates; and we check legal fees to ensure the Scheme is not being overcharged for services rendered by external attorneys.

The difference between our unfinanced Levy Collection and our Levy Finance Product is that we offer the legal management and collection services to the Scheme without the financial assistance.

This product is best suited to Schemes which either:

• Have sufficient cash reserves and do not require financial assistance to operate or fund the legal action but need professional assistance with the collection of levy arrears; or
• Where the Scheme has financial issues but ZDFin does not consider the Scheme a viable candidate for Levy finance. This would be in instances where the Debt exceeds the underlying value of the unit and/or where the Levy Finance Product may lead to the Scheme being at risk of being stuck in a proverbial debt trap.

We understand that quick and effective recovery of levy arrears is paramount to the successful running of the Scheme, and we have seen, all too often,  Schemes implode as a result of non-paying owners.