David Phahlamohlaka obo Elwood Body Corporate v MJ Vercueil

David Phahlamohlaka, acting on behalf of the trustees of Elwood Body Corporate, brought a CSOS application against MJ Vercueil, the registered owner of unit 55 in the Elwood sectional title scheme in Benoni, Gauteng. The body corporate alleged that the respondent had failed over a period of time to pay levy contributions due in respect of her unit. As at August 2023, the arrears amounted to R122 315.20, stated to include interest. The applicant said that requests for payment had been made, internal remedies had been exhausted, and the trustees had resolved to proceed through CSOS to recover the arrear levies. The matter was referred to conciliation, a certificate of non-resolution was issued on 23 October 2023, and it then proceeded to adjudication. The respondent did not file a substantive response despite being invited to do so in terms of the CSOS process.

• Whether the Community Schemes Ombud Service had jurisdiction under sections 38 and 39(1)(e) of the CSOS Act to determine the levy dispute.
• Whether Elwood Body Corporate was entitled to recover arrear levy contributions from the respondent as owner of the unit.
• Whether the applicant's documentary evidence sufficiently proved the arrear amount on a balance of probabilities.
• Whether payment of the arrear levies could appropriately be ordered in instalments.
• Whether a costs order should be made in the circumstances.

The application was granted. The respondent was ordered to pay arrear levy contributions of R122 315.20 to the applicant. Payment was to be made in 12 equal monthly instalments of R10 192.94, plus interest at 10% per annum, commencing on 1 March 2024 and thereafter on the first day of each consecutive month until the debt was paid in full. If the respondent defaulted, the full outstanding amount would immediately become due and payable. No order as to costs was made.

A body corporate in a sectional title scheme is entitled, through CSOS under section 39(1)(e) of the CSOS Act, to recover arrear levy contributions from a unit owner where the levies were duly raised and the applicant proves the indebtedness on a balance of probabilities. A unit owner may not withhold payment of levies on the basis of a dispute about the necessity or wisdom of the levies, and CSOS may order payment, including structured instalment arrangements, where appropriate.

The adjudicator observed that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme by prejudicing maintenance, insurance, security and the collective investment of owners. The adjudicator also made general remarks about the usual approach to costs in CSOS adjudications, namely that parties ordinarily bear their own costs unless the matter falls within section 53 concerning frivolous or vexatious applications.

This decision illustrates the CSOS's role as a statutory forum for the recovery of unpaid sectional title levies and reaffirms the obligation of owners to pay levies when due. It underscores that bodies corporate may rely on section 39(1)(e) of the CSOS Act to obtain enforceable payment orders and that non-payment threatens the viability of community schemes. It also reflects the practical remedial flexibility of adjudicators, including permitting repayment by instalments.