Directors of Albertsdal Leopards Rest HOA v BJ Nhlapho

The applicant, the Directors of Albertsdal Leopards Rest Homeowners Association, a non-profit company and community scheme under the Community Schemes Ombud Service Act 9 of 2011, brought a dispute-resolution application under section 38 of the CSOS Act against the respondent, BJ Nhlapho, the registered owner of unit 5600 in the scheme. The applicant alleged that despite numerous written demands, the respondent failed to pay monthly levies and ancillary charges due in terms of the scheme’s Memorandum of Incorporation. The applicant submitted a levy statement showing arrears of R4 472.27 as at 19 February 2024. The respondent did not respond to the CSOS correspondence and filed no substantive opposition. The matter was determined on the papers in terms of the CSOS practice directives.

• Whether the CSOS had jurisdiction to adjudicate the levy dispute under sections 38 and 39(1)(e) of the CSOS Act.
• Whether the respondent, as a registered owner and member of the HOA, was legally obliged to pay monthly levies and ancillary charges in terms of the HOA’s Memorandum of Incorporation and rules.
• Whether the applicant proved on a balance of probabilities that the respondent was indebted to it in the amount of R4 472.27.
• What payment order should be made, including whether repayment by instalments was appropriate.

The application succeeded. The adjudicator declared that the respondent was indebted to the applicant in the amount of R4 472.27 in respect of levies and ancillary charges as at 19 February 2024, and ordered payment in three equal monthly instalments of R1 490.76, the first payable on or before 1 March 2024 and the remaining two on the first day of each succeeding month. No interest would accrue during the three-month payment period. The order did not affect the respondent’s ongoing obligation to pay regular monthly levies and ancillary charges. If the respondent defaulted on any instalment, the full outstanding amount would immediately become due and payable. No costs order was made.

A registered owner within a homeowners association is contractually bound by the association’s Memorandum of Incorporation and rules, including the obligation to pay levies and ancillary charges when due. Where an HOA proves, on a balance of probabilities, through its constitutive documents and account statements, that a member is in arrears, and there is no rebutting evidence from the owner, CSOS may grant relief under section 39(1)(e) of the CSOS Act ordering payment of the outstanding contributions or other amounts.

The adjudicator observed that levies are the 'lifeblood' of an HOA and that non-paying owners are effectively subsidised by owners who pay conscientiously. These comments explain the practical importance of levy enforcement but were not themselves necessary beyond the finding that the respondent was indebted. The adjudicator also made a discretionary accommodation by suspending interest for three months and permitting instalment payments, which was case-management oriented rather than a statement of binding legal principle.

The decision illustrates the CSOS’s role in enforcing levy obligations within community schemes and confirms that HOA levy disputes are properly adjudicable under section 39(1)(e) of the CSOS Act. It reinforces the South African principle that owners in homeowners associations are contractually bound by the scheme’s constitutive documents and rules, including levy obligations. The order also shows the adjudicator’s practical discretion to grant payment relief by instalments while still protecting the scheme’s financial interests.