The Body Corporate of Marsh Rose (Sectional Title Scheme No: SS269/2012) v Steinmuller and Others

Mr Arno Steinmuller purchased a unit in the Marsh Rose sectional title scheme at a sale in execution conducted by the Sheriff at the instance of Standard Bank. Prior to the sale, the Body Corporate had obtained judgment against the previous owner for arrear levies. To enable transfer, the Body Corporate demanded payment of all amounts it claimed were due in respect of the property before issuing a clearance certificate under s 15B(3)(a)(i)(aa) of the Sectional Titles Act 95 of 1986. Mr Steinmuller disputed portions of the amount claimed, sought supporting documentation, and tendered limited payment plus security. When the Body Corporate refused to issue a clearance certificate, he applied to the High Court, which ordered the Body Corporate to facilitate transfer against provision of security. That decision was upheld by the Full Court, leading to an appeal to the Supreme Court of Appeal.

The appeal was upheld with costs, including the costs of two counsel. The order of the Full Court was set aside and replaced with an order dismissing Mr Steinmuller’s application with costs. Leave to intervene was granted to the National Association of Managing Agents NPC, and the first respondent was ordered to pay the costs occasioned by opposing the intervention.

The judgment clarifies the scope and strength of the statutory embargo under s 15B(3)(a)(i)(aa) of the Sectional Titles Act, confirming that purchasers at sales in execution cannot compel bodies corporate to issue clearance certificates or challenge the amounts claimed. It reinforces the distinction between contractual rights arising from sales in execution and statutory rights protecting bodies corporate, thereby strengthening levy recovery mechanisms in sectional title schemes.