Tygerberg Centre Body Corporate v M Duister

The applicant, Tygerberg Centre Body Corporate, acting through its managing agent Urban Index and authorised by trustee resolution dated 30 November 2023, brought an application under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, M Duister, the registered owner of Unit 26 in the Tygerberg Centre sectional title scheme in Bellville, Cape Town. The body corporate alleged that the respondent had failed over a period of time to pay levy contributions due in respect of his unit. According to the October 2023 statement, the arrear levies totalled R13 393.07. The applicant stated that requests for payment had been made and internal remedies exhausted. The respondent did not file a response to the dispute despite being given notice on 18 October 2023 and a further opportunity to respond. A certificate of non-resolution was issued on 14 December 2023 after conciliation failed, and the matter proceeded to adjudication on the papers.

• Whether the CSOS had jurisdiction under section 39(1)(e) of the CSOS Act to order payment of arrear levy contributions.
• Whether the applicant body corporate had proved, on a balance of probabilities, that the respondent owed arrear levies in the amount of R13 393.07.
• Whether the respondent's failure to respond or dispute the claim justified granting the relief sought on the papers.
• Whether any cost order should be made in the adjudication.

The application was granted. The respondent was ordered to pay arrear levy contributions of R13 393.07 in full on or before 30 April 2024. No order as to costs was made.

A body corporate may obtain an order under section 39(1)(e) of the CSOS Act compelling payment of arrear levies where it provides sufficient evidence of the levies raised and the outstanding amount, and proves its case on a balance of probabilities. In a sectional title scheme, owners are obliged to pay duly raised levy contributions, and such obligations are enforceable regardless of whether the owner disputes the wisdom or necessity of the levy decision.

The adjudicator observed generally that non-payment of levies can seriously destabilise a scheme and that levies are the 'lifeblood' of shared living schemes because they fund maintenance, repair, insurance and security for the collective benefit of owners. The adjudicator also made general comments on the usual approach to costs under section 54 of the CSOS Act, namely that parties ordinarily bear their own costs unless the circumstances fit the provisions applicable to frivolous or non-compliant matters.

This adjudication reaffirms the enforceability of body corporate levy obligations through the CSOS mechanism and underscores that levy payments are essential to the financial sustainability of sectional title schemes. It is significant in illustrating that where a body corporate produces sufficient documentary proof of arrears and the owner fails to dispute the claim, CSOS may grant payment relief on the papers. The decision also reflects the established South African principle that owners cannot withhold levies because they disagree with the decisions underlying them.