President Place Body Corporate v M Zulu

The applicant, President Place Body Corporate, is the body corporate of a registered sectional title scheme (SS 177/94) situated in Alberton, Johannesburg, Gauteng. The respondent, M Zulu, is the owner of Unit 7 in the scheme and therefore a member of the body corporate. The body corporate alleged that the respondent failed to make regular levy payments due to the scheme. As at September 2023, the arrears amounted to R12 870.09, inclusive of interest calculated at 24% per annum. The applicant stated that demands for payment had been made, internal remedies were exhausted, and the trustees resolved to pursue recovery through the Community Schemes Ombud Service (CSOS). The application was lodged on 7 September 2023 under section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for payment of the outstanding contributions. A certificate of non-resolution was issued on 13 November 2023 after conciliation failed. The respondent did not file submissions in response to the section 43 notice.

• Whether the CSOS had jurisdiction to determine a dispute concerning unpaid levy contributions in a sectional title scheme.
• Whether the body corporate had established, on a balance of probabilities, that the respondent owed arrear levy contributions in the amount claimed.
• Whether levy contributions and interest were lawfully due and payable in terms of section 3(2) of the Sectional Titles Schemes Management Act 8 of 2011 and Management Rule 21(3)(c).
• Whether the applicant was entitled to relief under section 39(1)(e) of the CSOS Act for payment of the outstanding contributions.
• Whether a costs order should be made.

The application was granted. The respondent was ordered to pay arrear levy contributions of R12 870.09 to the applicant in full on or before 28 March 2024. No order as to costs was made.

A body corporate may recover unpaid levy contributions through a CSOS adjudication under section 39(1)(e) of the CSOS Act where it proves, on a balance of probabilities, that the contributions were validly raised and remain unpaid. In terms of section 3(2) of the STSMA, contributions become due upon the passing of the relevant trustee resolution, and interest on overdue amounts may be levied where authorised under Management Rule 21(3)(c). Where the applicant's documentary evidence establishes the debt and the respondent provides no contrary response, an order for payment is justified.

The adjudicator observed that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme by undermining maintenance, insurance, security, and the collective interests of owners. The reference to The Body Corporate of Fish Eagle v Group Twelve Investments (Pty) Ltd was made as a general statement of principle that members cannot withhold levies because they dispute the necessity or wisdom of the levies. The discussion of costs under sections 53 and 54 of the CSOS Act was also ancillary to the main decision.

The matter confirms the CSOS's role as an accessible statutory forum for the recovery of unpaid levy contributions in sectional title and other community schemes. It reinforces that levy obligations are enforceable through adjudication, that documentary proof such as account statements may suffice where uncontested, and that owners cannot simply ignore levy liabilities without risking an enforceable order. The decision also highlights the importance of regular levy payment for the sustainability of community schemes.