The Trustees of Don Roberto Body Corporate v V. G. Nyamathe

The applicant, the Trustees of Don Roberto Body Corporate, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, V. G. Nyamathe, the owner of Unit 24 in the Don Roberto scheme in Johannesburg. The body corporate alleged that the respondent had failed to pay monthly levies and had fallen into arrears. According to the latest statement placed before the adjudicator, the amount outstanding as at 1 November 2023 was R63 719,15, inclusive of interest. The applicant sought an order under section 39(1)(e) of the CSOS Act compelling payment of the outstanding levies, interest, and legal costs. The respondent was invited to file written submissions but failed to respond by the deadline and provided no explanation for the default. The matter proceeded on the papers after a certificate of non-resolution had been issued.

• Whether the CSOS adjudicator had jurisdiction under section 39(1)(e) of the CSOS Act to order payment of outstanding levy contributions owed to a body corporate.
• Whether the applicant had established, on a balance of probabilities, that the respondent owed arrear levies in the amount of R63 719,15.
• Whether the respondent, as an owner in a sectional title scheme, was legally obliged to pay levies and interest determined by the body corporate.
• Whether the applicant was entitled to recover legal costs in addition to the arrear levies and interest in the absence of taxed costs, agreement by the member, or a court/adjudicative order.

The application succeeded. The adjudicator upheld the applicant's claim and ordered the respondent to pay R63 719,15, inclusive of interest, to the applicant in 12 equal instalments of R5 309,92 commencing on 1 December 2023, with the last instalment due on 1 December 2024. If the respondent fails to make the payments, the full outstanding amount becomes immediately due and payable. No order was made as to costs, and the claim for legal costs was not granted.

An owner of a unit in a sectional title scheme is legally obliged, by virtue of ownership and the statutory management framework, to pay levy contributions validly imposed by the body corporate. Under section 39(1)(e) of the CSOS Act, a CSOS adjudicator may order payment of arrear levies and interest where the body corporate proves the indebtedness on a balance of probabilities. However, legal costs are not recoverable merely because the body corporate has incurred them; such costs must be agreed to by the member, taxed, or otherwise authorised by a competent order before they become payable by the owner.

The adjudicator made broader observations about the contractual and statutory nature of membership in sectional title and estate schemes, noting that persons who choose to acquire property in such schemes voluntarily subject themselves to the applicable rules and governance structure. The adjudicator also remarked that the respondent appeared unwilling to pay the levies, but this was not essential to the legal basis of the order. Some references in the reasoning to the applicant/respondent in relation to legal costs appear imprecise, but the substance of the observation was that untaxed or unagreed legal fees may not simply be added to an owner's account.

This adjudication reinforces a core principle of South African sectional title and community schemes law: levy liability attaches to ownership and is enforceable through the CSOS dispute-resolution mechanism. It also illustrates the practical use of section 39(1)(e) of the CSOS Act to compel payment of arrear levies. Importantly, the order distinguishes between recoverable levies and legal costs, confirming that bodies corporate cannot automatically debit legal fees to an owner's account without proper legal basis such as taxation, agreement, or judicial/adjudicative authorisation. The matter is therefore significant for scheme governance, debt recovery, and the limits on self-help in the recovery of collection costs.