Albertsdal Leopards Rest Homeowners Association v Tshepang Isaac Motlolis

The applicant, Albertsdal Leopards Rest Homeowners Association, is a community scheme and homeowners’ association situated in Alberton, Gauteng. The respondent, Tshepang Isaac Motlolis, is the owner of stand 5751 within the scheme. The HOA brought an application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 seeking relief under section 39(1)(e) for payment of arrear levies and also sought an order compelling payment of future monthly contributions. The matter had first gone through the CSOS process, a certificate of non-resolution was issued, and it was referred to adjudication. The respondent did not oppose the application, did not respond to the initial application, and did not file final submissions. The applicant’s account statements reflected arrear levies of R4 157.34 as at 9 October 2023.

• Whether the respondent, as an owner and member of the homeowners’ association, was contractually and legally obliged to pay levies in terms of the scheme’s governance documents.
• Whether the applicant had established, on a balance of probabilities, that the respondent was in arrears in the amount of R4 157.34.
• Whether the adjudicator could grant an order compelling payment of future monthly levies in addition to arrear levies under the CSOS Act.

The application succeeded in part. The adjudicator ordered that the respondent is liable to the applicant in the amount of R4 157.34 in respect of arrear levies and must pay that amount within 30 days of the order. No order as to costs was made. The request for an order compelling payment of future monthly levies was not granted.

An owner within a homeowners’ association is bound by the association’s rules and governance documents, including obligations to pay levies, because the relationship is contractual in nature and voluntarily assumed on acquiring property in the estate. Where the association proves arrear levies on a balance of probabilities and the respondent provides no contrary version, an order for payment of the arrears may be granted under section 39(1)(e) of the CSOS Act. An adjudicator will not grant an order for future levies where such relief is unnecessary or beyond what is appropriate on the facts.

The adjudicator made general observations about the importance of levy collection for the functioning of homeowners’ associations, including funding security, waste management, insurance, common rates and taxes, and administrative costs. The adjudicator also commented that HOA directors must ensure strict adherence to the rules so that the association can meet its financial obligations.

This adjudication illustrates the CSOS’s role in enforcing levy obligations in community schemes and confirms that homeowners’ association levies are enforceable as contractual obligations flowing from membership and the scheme’s governance documents. It also shows a limit on CSOS adjudicative relief: an adjudicator may order payment of proven arrears but will not necessarily grant anticipatory relief for future levies where those amounts are not yet due in dispute or where the member is already bound by the scheme rules.