The Trustees of Eveleigh Heights Body Corporate v Makhosazana Mabaso

The applicant, the Trustees of Eveleigh Heights 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, Makhosazana Mabaso, the owner of Unit 205 in the Eveleigh Heights scheme in Boksburg. The body corporate alleged that the respondent had failed to pay monthly levies due to the scheme and that, according to its latest statement calculated to 1 November 2023, the arrears amounted to R19 741,44. The applicant sought an order under section 39(1)(e) of the CSOS Act directing payment of the outstanding levies, interest and legal costs. The respondent was invited to file written submissions but did not respond by the deadline of 24 October 2023 and gave no explanation for the default. The matter proceeded on the papers after a certificate of non-resolution had been issued.

• Whether the body corporate was entitled under section 39(1)(e) of the CSOS Act to an order compelling the respondent to pay outstanding levies.
• Whether the evidence submitted by the applicant established, on a balance of probabilities, that the respondent owed R19 741,44 in arrear levies and interest.
• Whether the respondent, as owner of a unit in the scheme, was legally bound by the scheme's conduct rules and the trustees' levy resolutions.
• Whether legal costs could be included in the amount recoverable from the respondent in the absence of agreement, taxation, or a court/adjudicative order.

The application was upheld. The respondent was ordered to pay the applicant R19 741,44, inclusive of interest, in 6 equal instalments of R3 290,24 commencing on 1 December 2023, with the final instalment due on 1 May 2024. If the respondent defaulted, the full outstanding amount would immediately become due and payable. No order as to costs was made.

A body corporate may obtain relief under section 39(1)(e) of the CSOS Act for payment of outstanding levies where it proves, on a balance of probabilities, that a unit owner is liable for unpaid contributions imposed in terms of the scheme rules and the Sectional Titles Schemes Management Act. A unit owner is bound by the rules of the scheme and is obliged to pay levies duly raised by the body corporate. However, legal costs are not recoverable as part of the owner's debt unless they have been agreed to by the owner, taxed, or authorized by a competent judgment or order.

The adjudicator made general remarks about evidentiary principles in paper-based adjudications, including that findings must be made on relevance, credibility and probabilities. The order also noted the respondent's apparent unwillingness to pay levies and recorded the statutory right of appeal to the High Court under section 57 of the CSOS Act on a question of law. Some wording in the reasons incorrectly reversed the parties when discussing recovery of levies and legal fees, but the final order makes the intended result clear.

The decision is significant in community schemes practice because it confirms the use of section 39(1)(e) of the CSOS Act as an effective mechanism for bodies corporate to recover arrear levies from defaulting owners on a paper-based adjudication. It also reinforces that ownership in a sectional title or similar scheme carries an enforceable obligation to comply with scheme rules and levy resolutions. Importantly, it distinguishes between recoverable levies and legal costs, confirming that legal charges may not simply be debited and recovered from an owner unless they have been agreed, taxed, or authorized by a judgment or order.