Trustees of Akasia Body Corporate v TH Nhlapo

The applicant, Trustees of Akasia Body Corporate, is the body corporate of a sectional title scheme governed by the Sectional Titles Schemes Management Act 8 of 2011 and falling within the Community Schemes Ombud Service Act 9 of 2011. The respondent, TH Nhlapo, is the registered owner of section 20 in the scheme. The body corporate alleged that the respondent had failed to pay monthly levies and ancillary charges, including monthly CSOS levies, and submitted a statement of account showing arrears of R67 472.17 as at 22 February 2024. The respondent did not dispute ownership or the existence of arrears, but explained that he had been unemployed for some time and had only resumed making payments from January 2024, paying amounts toward current levies and arrears. Conciliation failed, a certificate of non-resolution was issued, and the matter proceeded to paper-based adjudication under the CSOS Act.

• Whether the respondent, as a unit owner, was liable to the applicant body corporate for outstanding levies and ancillary charges in the amount claimed.
• Whether the applicant had proved, on a balance of probabilities, the respondent's indebtedness as at 22 February 2024.
• Whether relief under section 39(1)(e) of the CSOS Act should be granted for payment of the outstanding contribution or other amounts.
• Whether the adjudicator could structure repayment of the arrears by instalments and suspend interest during the repayment period.

The application was granted. The adjudicator declared that the respondent is indebted to the applicant in the amount of R67 472.17 in respect of levies and ancillary charges as at 22 February 2024. The respondent was ordered to pay this amount in 24 equal monthly instalments of R2 811.34, commencing on 1 April 2024, with subsequent payments due on the first day of each succeeding month. No interest would accrue during the repayment period. The order did not affect the respondent's obligation to continue paying regular monthly levies and ancillary charges. If the respondent defaulted on any ordered payment, the full outstanding amount would immediately become due and payable. There was no order as to costs.

A registered owner in a sectional title scheme is obliged to pay levies and ancillary charges lawfully raised by the body corporate under the STSMA and applicable management rules. Where the body corporate proves, on a balance of probabilities, the amount outstanding, CSOS may grant relief under section 39(1)(e) of the CSOS Act ordering payment of the arrears. Financial hardship or unemployment may explain default but does not extinguish the owner's liability for contributions due to the body corporate.

The adjudicator observed that owners who default on levy payments are effectively subsidised by other members who pay conscientiously, and that a body corporate cannot perform its statutory functions and duties without funds from unit owners. These remarks support the decision's policy rationale but are not themselves necessary to the operative finding of indebtedness.

This decision reinforces the principle in South African sectional title law that unit owners are legally obliged to pay levies and ancillary charges imposed by the body corporate, and that personal financial hardship does not extinguish that obligation. It also illustrates the remedial role of the CSOS in enforcing levy debts under section 39(1)(e) of the CSOS Act, including the ability to grant payment orders tailored by instalments. The matter is significant at a practical level for community schemes because it confirms that bodies corporate may use CSOS adjudication as an efficient mechanism to recover arrear levies necessary for the functioning of the scheme.