Deo Exulto Body Corporate v DG & LE Steyn

The applicant, Deo Exulto Body Corporate, is the body corporate of a registered sectional title scheme in Doringkloof, Centurion, Gauteng. The respondents, DG & LE Steyn, are the owners of section 70 in the scheme and therefore members of the community scheme. The body corporate alleged that the respondents had failed over time to pay levy contributions due to the scheme. It claimed arrear levies in the amount of R22 657.37, inclusive of interest calculated at 18% per annum in terms of the scheme's conduct rules. The applicant lodged a dispute-resolution application with the Community Schemes Ombud Service on 6 June 2023 under s 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011, seeking an order for payment of the arrear contributions. Conciliation failed, and a certificate of non-resolution was issued on 11 July 2023. The respondents did not respond to the allegations under s 43 of the CSOS Act and also failed to make final written submissions. The applicant submitted a contribution statement and breakdown of the charges in support of its claim.

• Whether the CSOS had jurisdiction under the CSOS Act to adjudicate a dispute concerning unpaid levy contributions in a sectional title scheme.
• Whether the body corporate had established, on a balance of probabilities, that the respondents were liable for arrear levy contributions in the amount claimed.
• Whether the body corporate was entitled to interest on the overdue levy amounts.
• Whether it was appropriate to order immediate payment in full or allow payment by instalments.
• Whether any costs order should be made.

The application was granted. The respondents were ordered to pay arrear levy contributions of R22 657.37 to the applicant, together with interest at 18% per annum, in 12 equal monthly instalments of R1 888.11 commencing on 1 October 2023, without affecting their obligation to continue paying regular monthly levies and related charges. If the respondents defaulted, the full outstanding amount would immediately become due and payable. No order as to costs was made.

A body corporate in a sectional title scheme is entitled, under the STSMA and the CSOS Act, to recover duly raised levy contributions from an owner through CSOS adjudication under s 39(1)(e), provided the liability is established on a balance of probabilities. Overdue levy amounts may attract interest where authorised by the applicable rules and management provisions. An owner may not lawfully withhold levy payments on the basis of disagreement with the levies or the wisdom of the body corporate's decisions.

The adjudicator remarked that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme and harm the collective interests of owners. The adjudicator also observed that, because of the extraordinary circumstances following the Covid-19 pandemic, fairness justified allowing the respondents additional time to pay the debt by instalments. These observations informed the remedial approach but were not strictly necessary to establish liability for the arrears.

This adjudication confirms the CSOS's role as an effective forum for sectional title bodies corporate to recover arrear levies from owners under s 39(1)(e) of the CSOS Act. It reinforces the principle in South African sectional title law that owners are obliged to pay levies when due and may not withhold payment because of dissatisfaction with the scheme's decisions. The order also illustrates the adjudicator's discretion to craft equitable payment arrangements, including instalment payments, while still enforcing the body corporate's financial rights.