Trustees of Soetdoringpark Body Corporate v AP Olivier N.O. and FJ Olivier N.O. as Trustees for the Prop 9 Familie Trust

The applicant, the Trustees of Soetdoringpark Body Corporate, is the body corporate of a sectional title scheme in Klerksdorp governed by the Sectional Titles Schemes Management Act 8 of 2011 and the Community Schemes Ombud Service Act 9 of 2011. The respondents, AP Olivier N.O. and FJ Olivier N.O., are the trustees of the Prop 9 Familie Trust, the registered owner of unit 92 in the scheme. The body corporate alleged that the respondents had fallen into arrears on their levy account. Arrear reminders and a final demand were sent, and the applicant stated that all internal remedies had been exhausted. The applicant sought an order under s 39(1)(e) of the CSOS Act for payment of the outstanding amount, including interest and ancillary charges, in the sum of R14 974.39 as at February 2024. The respondents did not file any submissions in response to the statement of claim. The applicant placed before the adjudicator a signed mandate authorising the managing agent to act and an up-to-date levy history statement for the unit.

• Whether the dispute fell within the jurisdiction of the CSOS as a dispute concerning the administration of a community scheme.
• Whether the applicant had proved on a balance of probabilities that the respondents were indebted to the body corporate for unpaid levies and ancillary charges.
• Whether the body corporate was entitled under the STSMA and prescribed management rules to recover arrear levies, CSOS charges and interest from the unit owner.
• Whether, in the absence of any response from the respondents, the applicant's uncontested evidence justified an adjudication order for payment.

Application upheld. The adjudicator found for the applicant and ordered that the respondents, as trustees of the Prop 9 Familie Trust, pay the applicant R14 974.39 in respect of levies and ancillary amounts, including CSOS levies and interest. Payment was ordered in 9 equal monthly instalments of R1 663.82 commencing on 1 March 2024 and thereafter on the first day of each consecutive month until the amount was paid in full. The order did not affect the respondents' ongoing obligation to pay regular monthly levies and ancillary charges. If the respondents defaulted on any one instalment, the full outstanding amount would become immediately due and payable. No order as to costs was made.

A body corporate established under the STSMA is statutorily entitled and obliged to require owners to pay levies and contributions necessary for the administrative and reserve funds of the scheme, and may recover arrear levies together with authorised ancillary charges and interest through CSOS adjudication. Where the applicant provides supporting documentation and the respondent fails to dispute the claim, the adjudicator may find on a balance of probabilities that the debt is proved and grant a payment order under s 39(1)(e) of the CSOS Act.

The adjudicator observed that owners who fail to pay levies are effectively subsidised by compliant members and that a body corporate cannot perform its functions without funds from owners. The adjudicator also repeated judicial remarks from prior case law that interest on arrear amounts is not a penalty but serves to preserve the value of the debt against inflation and delay. These observations supported the reasoning but were not strictly necessary beyond the finding that the amount claimed, including interest, was due.

The decision is a straightforward but useful CSOS adjudication confirming the enforceability of body corporate levy obligations through the CSOS dispute-resolution mechanism. It illustrates that where a unit owner fails to respond, the adjudicator may accept the body corporate's properly supported claim as uncontested and grant relief for arrear levies, ancillary charges and interest. It also reinforces the statutory duty of bodies corporate under the STSMA to collect contributions necessary for the administration and maintenance of the scheme.