25 May 2011 UPDATE: Constantia Sectional Title Management (PTY) Limited (In provisional liquidation) (CSTM)

IMMEDIATE RELEASE
25 May 2011

As most consumers will, by now, be aware, CSTM was interdicted by the High Court, Gauteng South on 24 May 2011 from continuing to operate as an estate agent. This means that CSTM may no longer legally perform the functions and activities of an estate agent including, in particular, the management of sectional title schemes. The Court also appointed a curator to administer and control all CSTM trust accounts.

Due to the legal doctrine of “supervening impossibility of performance” all bodies corporate which might have contracted with CSTM to administer their sectional title affairs will now be obliged to utilise the sectional title management services of any other reputable sectional title management firm, should they choose to do so. Attorney Marina Constas, of the firm, Biccari Bollo Mariano Inc., has indicated that, by virtue of the extensive knowledge and networking experience that she has gained within the sectional title administration sphere, she would be available, at a greatly reduced rate, to assist any affected bodies corporate both to source alternate sectional title management companies appropriate to their needs and, also, to lodge claims for any amounts that might due and owing by CSTM to those bodies corporate. Ms. Constas may be contacted telephonically at 011 622 3622 or by e-mail at mconstas@bbmlaw.co.za for advice.

It is important, in any event, that bodies corporate immediately protect themselves by no longer continuing to pay any trust moneys over to CSTM.

It will, in addition, now be necessary for the Court appointed curator, Mr. Lawrence Moepi, to commence urgent investigations to ascertain the current state of the trust accounts held by CSTM as well as to determine whether any trust shortages, in fact, exist.

It will also be necessary for all affected bodies corporate to compute the amount of any trust claims that they believe they have against CSTM and to furnish satisfactory proof substantiating all such claims. Any such claims should, in due course, be submitted to Mr. Lawrence Moepi. Mr. Moepi will be establishing a dedicated telephone number and e-mail address for this purpose. Full details will be made available to consumers as soon as we receive the information from Mr. Moepi.

It is an unfortunate fact that no settlement of any such proven claims can be made by the curator until such time as the state of the CSTM trust accounts has been fully and satisfactorily determined. This may well prove to be an extremely time-consuming process. It may also be necessary for affected bodies corporate, in due course, to lodge reimbursement claims against the Estate Agents Fidelity Fund should it become apparent that there are, indeed, insufficient moneys available in the trust accounts of CSTM to settle all trust claims. A short-term solution to the anticipated problem, and to ensure that essential services are not disrupted, is to impose a special levy. This will, at least, enable bodies corporate to meet any immediately due financial commitments.

The Estate Agency Affairs Board, for its part, will do everything possible to ensure the least inconvenience to the affected bodies corporate.

End//

For all media enquiries:

Marketing &Communications Dept                                   
Estate Agency Affairs Board                                                   
Tel: 011 731 5600 or Email: margie@eaab.org.za



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