Trustees of Akasia Body Corporate v GA Monareng

The applicant, the Trustees of Akasia Body Corporate, is the body corporate of a sectional title scheme governed by the Sectional Titles Schemes Management Act 8 of 2011 and constituting a community scheme under the Community Schemes Ombud Service Act 9 of 2011. The respondent, GA Monareng, is the registered owner of section 59 in the scheme. The body corporate alleged that the respondent failed or neglected to pay monthly levies and ancillary charges, including monthly CSOS levies, due in respect of the unit. The applicant submitted a statement of account showing an alleged indebtedness of R75 513.14 as at 1 February 2024. The respondent did not file any response or submissions despite correspondence from CSOS. The matter proceeded on the papers and was adjudicated under section 39(1)(e) of the CSOS Act for payment of an amount due.

• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to the body corporate for outstanding levies and ancillary charges.
• Whether the applicant had proved on a balance of probabilities that the respondent was indebted in the sum of R75 513.14.
• Whether the adjudicator should grant relief under section 39(1)(e) of the CSOS Act for payment of the outstanding amount.
• Whether payment should be ordered immediately or by way of instalments, and on what terms.

The application was granted. The adjudicator declared that the respondent is indebted to the applicant in the amount of R75 513.14 in respect of levies and ancillary charges as at 1 February 2024. The respondent was ordered to pay that amount in 24 equal monthly instalments of R3 146.38, commencing on 1 April 2024 and thereafter on the first day of each succeeding month. No interest would accrue during the permitted payment period. The order does not affect the respondent's ongoing liability for regular monthly levies and ancillary charges. If the respondent defaults on any instalment, the full outstanding amount becomes immediately due and payable. There was no order as to costs.

A body corporate in a sectional title scheme is entitled to require owners to pay levies and ancillary contributions lawfully raised under the STSMA and the scheme rules. Where the body corporate places sufficient documentary evidence before the adjudicator showing arrear contributions, and the owner provides no answering version, the adjudicator may find on a balance of probabilities that the debt is due and make an order under section 39(1)(e) of the CSOS Act for payment of that amount. The adjudicator may also regulate the manner of payment by instalments without extinguishing the underlying liability.

The adjudicator remarked that owners who default on levy payments are effectively subsidised by compliant members of the body corporate, and that the body corporate cannot perform its statutory functions and duties in the absence of contributions from unit owners. These observations explain the practical importance of levy enforcement but were not independently necessary to the dispositive finding on the proven indebtedness.

This decision illustrates the CSOS's role in enforcing levy obligations within sectional title schemes through section 39(1)(e) of the CSOS Act. It reaffirms that unit owners are legally obliged to pay body corporate levies and ancillary charges necessary for the functioning of the scheme, and that uncontested documentary proof of indebtedness may suffice to obtain relief. The order is also significant for showing that CSOS adjudicators may grant pragmatic payment arrangements, including instalments and temporary suspension of interest, while still vindicating the body corporate's right to recover arrears.