FAQs

Sectional Title Finance

Do the scheme’s trustees need to sign personal surety for a loan from Propell?

 

No, Propell enters into a contract with the legal entity, so there is no need for the trustees of a scheme to sign personal surety for a loan. 

How will accepting your services impact on the role of our managing agent?

It is important to understand that Propell handles only the levy administration, so the managing agent will continue to play a key role in the day-to-day running of the scheme.

Project Finance

What type of maintenance and/or improvement projects would qualify for your Project Finance option?

These can take the form of capital-intensive projects like security upgrades, painting, elevator replacements, or even the settlement of creditors. Propell’s Project Finance product offers immediate access to much needed funds.

What do you mean by the “useful life” of the improvement? How does this determine the repayment term?

The “useful life” of the improvement is the predicted period for which the improvement is likely to be useful to, and enjoyed by, the owners within a scheme. For example, a paint job will need to be redone every three to four years. By matching the repayment term to the useful life of the painting improvement, the loan will always be settled prior to the time when further painting improvements are necessary.

What happens to the project’s special levy instalments when a unit within the scheme is sold?

Should a unit be sold before the repayment of the special levy, the seller will need to settle in full their special levy obligation prior to the date of transfer.

Is early settlement possible?

Yes, early settlement is possible, but an early settlement fee will be charged.

Will this service affect the managing agent’s role in any way?

No, the managing agent’s role will not change on acceptance of a Project Finance loan from Propell. The managing agent will remain responsible for the full levy administration and day-to-day management of the scheme.

Arrears Finance

What is the difference between your Arrears Funding and Levy Funding products?

Our Levy Funding product is designed to assist those bodies corporate currently facing significant arrears and monthly cash flow constraints. Our Arrears Funding product, on the other hand, is best suited to those bodies corporate that do not have a monthly cash flow problem, but would like to turn their arrears debtors into cash.

Will the managing agent’s role change during the process of arrears funding and collection?

In this scenario, the managing agent remains responsible for both the levy administration and the day-to-day management of the scheme. Propell collects only on the individual accounts forming part of the arrears.