Chaka Centre Body Corporate v Bursum Prop (Pty) Ltd

The applicant, Chaka Centre Body Corporate, a body corporate under the Sectional Titles Schemes Management Act 8 of 2011, brought an application to the Community Schemes Ombud Service (CSOS) against the respondent, Bursum Prop (Pty) Ltd, the registered owner of unit 6 in the scheme. The dispute concerned the respondent's failure to pay monthly levies and ancillary charges, including CSOS levies, despite numerous written demands. The matter was first referred to conciliation, which failed on 6 December 2023, after which a certificate of non-resolution was issued and the dispute was referred to adjudication. The adjudicator considered the matter on the papers. The applicant filed a statement of account and, when requested, an updated levy statement showing arrears of R39 391.67 as at 10 May 2024. The respondent filed no submissions and sought no relief.

• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to the body corporate for arrear levies and ancillary charges.
• Whether the applicant had proved on a balance of probabilities that the amount of R39 391.67 was due and payable.
• Whether the body corporate was entitled under section 39(1)(e) of the CSOS Act to an order for payment of the outstanding contributions and other amounts.
• Whether interest charged on overdue amounts was authorised in terms of Prescribed Management Rule 21(3)(c) of the STSMA.

The application was granted in terms of section 39(1)(e) of the CSOS Act. The respondent was declared indebted to the applicant in the amount of R39 391.67 for levies and ancillary charges as at 10 May 2024. The respondent was ordered to pay that amount in 12 equal monthly instalments of R3 282.64 commencing on 1 June 2024, with the remaining instalments payable on the first day of each succeeding month. The order did not affect the respondent's ongoing obligation to pay current monthly levies and ancillary charges. If the respondent defaulted on any instalment, the full outstanding amount would immediately become due and payable. No interest would accrue on the outstanding levy amount during the payment period, and there was no order as to costs.

A body corporate is entitled to recover outstanding levies and ancillary charges from a unit owner through a CSOS adjudication under section 39(1)(e) of the CSOS Act where it proves, on a balance of probabilities, the owner's indebtedness by means of the levy records and supporting documentation. Under the STSMA and its prescribed management rules, owners in a sectional title scheme are obliged to contribute to the scheme's funds, and overdue amounts may attract interest if properly authorised by trustee resolution and compliant with the applicable rules.

The adjudicator observed that owners who default on levies are effectively subsidised by compliant owners and that the body corporate cannot perform its duties without funds from unit owners. These remarks explain the policy rationale for levy enforcement but were not strictly necessary to the dispositive finding. The adjudicator's indulgence in allowing payment by instalments and suspending further interest during the repayment period was also discretionary and not a statement of binding legal principle.

This decision illustrates the CSOS's role in enforcing levy obligations within sectional title schemes through section 39(1)(e) of the CSOS Act. It reaffirms that unit owners are legally obliged to pay levies and ancillary contributions necessary for the body corporate to perform its statutory functions, and that a body corporate can obtain payment orders on documentary proof where the owner does not dispute the claim. The adjudication also shows that the CSOS may grant practical repayment terms while still vindicating the body corporate's right to recover arrears.