The Trustees of Ithathi Body Corporate v Dzalani Magara

The applicant, The Trustees of Ithathi Body Corporate, brought an application under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 against the respondent, Dzalani Magara, the owner of unit 12 in the scheme. The body corporate alleged that the respondent had failed to pay levies due to the scheme. The application stated an earlier arrears amount of R12 660.39, but the applicant later relied on a detailed ledger showing arrear levies of R17 907.36 inclusive of interest. The applicant also stated that the respondent had been reminded of his obligations by SMS and email. The respondent did not file any response or submissions despite being requested to do so. The matter was therefore referred directly to adjudication, and the adjudicator determined the matter on the papers.

• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to the body corporate for unpaid levies.
• Whether the applicant had established, on a balance of probabilities, the amount of levy arrears due by the respondent.
• Whether the body corporate was entitled to charge interest on overdue levies under the Prescribed Management Rules and a trustee resolution.
• Whether the adjudicator had authority to grant an order for future legal costs if the matter later proceeded to court.

The application succeeded. The respondent was declared liable to the applicant in the amount of R17 907.36, inclusive of interest, for levy arrears. The respondent was ordered to pay the debt in six monthly instalments of R2 984.56 commencing on 1 February 2024 and thereafter on the first day of each subsequent month. If any instalment was not paid on due date, the full outstanding balance would immediately become due and payable. The order did not affect the respondent's ongoing obligation to pay regular monthly levies. No order as to costs was made.

An owner of a unit in a sectional title scheme is, by virtue of ownership, a member of the body corporate and is liable for levies lawfully raised to fund the scheme's expenses. Where the body corporate proves arrear levies on a balance of probabilities and has a valid trustee resolution authorising interest under PMR 21(3)(c), it may obtain a CSOS order for payment of the arrears with interest. A CSOS adjudicator may not award speculative future legal costs for proceedings that may later be instituted in court.

The adjudicator observed, with reference to Mount Edgecombe Country Club Estate Management Association II (RF) NPC v Singh, that the relationship between a community association and owners is contractual in nature when owners choose to purchase within the scheme and agree to be bound by its rules. The adjudicator also remarked generally on evidentiary principles, including relevance and proof on a balance of probabilities, although these comments were not central to the dispositive finding.

This adjudication reinforces a settled principle in South African sectional titles law: liability for levies flows from ownership of a unit and may be enforced through the CSOS mechanism. It also confirms that a body corporate may recover arrear levies and interest where properly authorised under the Prescribed Management Rules and trustee resolution. The decision is additionally significant for clarifying the limits of a CSOS adjudicator's powers, particularly that future legal costs for possible court proceedings cannot be awarded in advance.