Albertsdal Leopards Rest Homeowners Association v Z.S. & N.L. Ntombela

The applicant, Albertsdal Leopards Rest Homeowners Association, a non-profit company and community scheme under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act), brought an application against the respondents, Z.S. and N.L. Ntombela, who are the registered owners of unit 4274 Leopard's Rest, Alberton. The association alleged that the respondents had fallen into arrears with levy payments in the amount of R4,531.92 as at 10 October 2023. The HOA relied on its Memorandum of Incorporation and conduct rules, which require members to pay monthly levies in advance on the first day of each month and permit recovery of arrear levies and penalties. Numerous communications had allegedly been sent to the respondents demanding payment. The respondents did not file any written submissions despite being invited to do so by CSOS. The matter was adjudicated on the papers under the CSOS Act and applicable practice directives.

• Whether the dispute fell within the jurisdiction of the Community Schemes Ombud Service under sections 38 and 39(1)(e) of the CSOS Act.
• Whether the respondents, as owners and members of the homeowners association, were legally obliged under the HOA's Memorandum of Incorporation and conduct rules to pay levies.
• Whether the applicant had established on a balance of probabilities that the respondents owed arrear levies of R4,531.92.
• Whether it was appropriate to grant an order for payment of arrear levies and regulate the manner of payment by instalments.

The application was granted. The respondents were declared jointly and severally indebted to the applicant in the amount of R4,531.92 for arrear levies. They were ordered to pay the amount in three equal monthly instalments of R1,510.64, with the first payment due within 30 days of delivery of the order and the remaining two payments due on the first day of each succeeding month. These amounts were additional to the ongoing monthly levy. No penalties would accrue during the permitted instalment period, but on default the full outstanding balance would become immediately due and payable together with applicable penalties. No order as to costs was made.

A homeowners association that is a community scheme under the CSOS Act may obtain an adjudication order under section 39(1)(e) for payment of arrear levies where its Memorandum of Incorporation and conduct rules impose a binding obligation on owners to pay levies, and the applicant proves the indebtedness on a balance of probabilities. Registered owners, as members of the scheme, are bound by the association's governance instruments and remain liable for levies arising under those instruments.

The adjudicator observed that the HOA cannot perform its functions and duties in the absence of funds from owners, underscoring the practical importance of levy collection for the effective management of the estate. The order also reflected a discretionary accommodation to the respondents by allowing payment in instalments and suspending penalties during that limited period, although those comments were not necessary to establish the core legal liability.

The decision confirms the enforceability of homeowners association levy obligations through the CSOS adjudication mechanism. It illustrates that an HOA may obtain relief under section 39(1)(e) of the CSOS Act for arrear levies without instituting ordinary court proceedings, provided its governance documents establish the obligation and the indebtedness is proved on a balance of probabilities. The matter also reflects the practical approach of CSOS adjudicators in fashioning payment arrangements while still enforcing scheme governance rules.