The Trustees of Manhattan Park Body Corporate v P M Litheko

The applicant, the Trustees of Manhattan Park Body Corporate, brought an application before the Community Schemes Ombud Service (CSOS) under section 38 of the Community Schemes Ombud Service Act 9 of 2011, seeking relief under section 39(1)(e) for payment of arrear levies owed by the respondent, P M Litheko, owner of a unit in Manhattan Park, Roodepoort. The body corporate alleged that the respondent had fallen into arrears on levy contributions, that monthly levy statements and reminder notices had been sent, and that a final letter of demand was issued in October 2022. The respondent did not file any response or submissions despite being notified of the application. The matter was therefore referred for adjudication on the papers.

• Whether the applicant body corporate was entitled to an order compelling the respondent to pay arrear levies.
• Whether the evidence placed before the adjudicator established, on a balance of probabilities, that the levies claimed were due and payable.
• Whether a unit owner's liability for levies arises from ownership and membership of the body corporate notwithstanding the respondent's failure to participate in the proceedings.

The application in terms of section 39(1)(e) of the CSOS Act was upheld. The respondent was ordered to pay the applicant R49 005.05 within 30 days of the order. No order as to costs was made.

A body corporate is entitled under the CSOS Act to obtain an order for payment of arrear levies where it proves that the respondent is an owner liable for contributions, that the levies are due and unpaid, and the respondent provides no sustainable defence. In sectional title schemes, liability for levies attaches to ownership and membership of the body corporate and is enforceable to ensure the scheme's proper management and financial viability.

The adjudicator observed that failure by owners to pay levies may render the scheme financially non-viable and impair its ability to pay local authorities and service providers. The adjudicator also remarked that the absence of the scheme rules in the filing did not excuse the respondent from liability, given that the obligation to pay levies arises from ownership and membership of the body corporate. These observations were supportive of the conclusion but not independently necessary to the order.

The decision affirms, within the CSOS adjudication context, that a sectional title owner is obliged to pay levies as an incident of ownership and membership of the body corporate, and that a body corporate may obtain a payment order through CSOS where arrears are proved on the papers. It illustrates the role of CSOS as a statutory mechanism for efficient recovery of community scheme debts and reinforces the financial necessity of levy compliance for the sustainability of sectional title schemes.