San Martinho Body Corporate v Dibuseng Gladys Leeuw

The applicant, San Martinho Body Corporate, is the body corporate of a sectional title scheme situated in Bedfordview, Gauteng. The respondent, Dibuseng Gladys Leeuw, is the registered owner of unit 92 in the scheme and therefore a member of the body corporate. The body corporate alleged that the respondent had failed to make regular levy payments over time and that arrear contributions, including interest calculated at 10% per annum, amounted to R25 862.85. A trustee resolution dated 3 May 2023 authorised the recovery process, and internal remedies were said to have been exhausted. The dispute was referred to the Community Schemes Ombud Service under section 38 of the CSOS Act after a certificate of non-resolution was issued on 11 August 2023. Despite notice issued under section 43 on 29 August 2023 and a further opportunity to respond, the respondent did not file any response to the claim.

• Whether the CSOS had jurisdiction under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 to adjudicate the dispute concerning unpaid levy contributions.
• Whether the body corporate had proved, on a balance of probabilities, that the respondent owed arrear levy contributions in the amount of R25 862.85.
• Whether the body corporate was entitled to recover interest on the overdue levies in terms of the applicable management rules and the National Credit Act framework referred to in the order.
• Whether any costs order should be made in the adjudication.

The application was granted. The respondent was ordered to pay arrear levy contributions of R25 862.85 to the applicant in full on or before 31 March 2024. No order as to costs was made.

A body corporate is entitled, under the STSMA and the CSOS Act, to recover duly raised levy contributions from a unit owner through a CSOS adjudication under section 39(1)(e), provided it proves the indebtedness on a balance of probabilities. Where the body corporate places sufficient documentary proof before the adjudicator, and the owner fails to rebut the claim, an order for payment of arrear levies may be granted. Overdue levy amounts may also attract interest where authorised by the applicable management rules and trustee resolution.

The adjudicator observed that non-payment of levies can seriously destabilise a scheme and that levies are the 'lifeblood' of shared living schemes because they fund maintenance, insurance, security and other common obligations. The adjudicator also made general remarks that parties in section 54 adjudications are generally expected to bear their own costs, with costs orders being more readily associated with dismissals under section 53 in frivolous or vexatious matters. No further substantial obiter appears beyond these general observations.

This adjudication reinforces the principle in community schemes and sectional title governance that body corporates may use the CSOS dispute-resolution mechanism to recover unpaid levies from defaulting owners. It underscores the statutory duty of owners to pay levies raised in accordance with the STSMA and scheme rules, and highlights the importance of levy collection to the sustainability of sectional title schemes. The order also illustrates the practical operation of section 39(1)(e) of the CSOS Act as a debt-recovery mechanism within the community schemes framework.