Directors of Albertsdal Leopards Rest HOA v PP Mofokeng

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 an application against the respondent, PP Mofokeng, the registered owner of unit 6514 in the scheme. The applicant alleged that the respondent had failed to pay monthly levies and ancillary charges, including CSOS levies, despite numerous written demands. The applicant relied on its Memorandum of Incorporation, which provides that levies are due monthly in advance on the first day of each month, and submitted a statement of account showing arrears of R3 966.24 as at 3 April 2024. The respondent did not respond to the CSOS correspondence, filed no submissions, and placed no contrary version before the adjudicator. The matter was decided on the papers in terms of the CSOS Act and applicable practice directives.

• Whether the applicant HOA had established, on a balance of probabilities, that the respondent was liable for unpaid levies and ancillary charges in the amount of R3 966.24.
• Whether the CSOS adjudicator was entitled under section 39(1)(e) of the CSOS Act to grant an order for payment of the outstanding levies and related amounts.
• Whether owners in a homeowners association are contractually bound by the scheme's governing documents, including levy obligations in the Memorandum of Incorporation and rules.

The application was granted. The respondent was declared indebted to the applicant in the amount of R3 966.24 in respect of levies and ancillary charges as at 3 April 2024, and was ordered to pay that amount in two equal monthly instalments of R1 983.12, the first on or before 1 May 2024 and the second on the first day of the succeeding month. No interest would accrue during the two-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 become immediately due and payable. No costs order was made.

An HOA may obtain relief under section 39(1)(e) of the CSOS Act for payment of outstanding levies and ancillary charges where it proves, on a balance of probabilities, through its governing documents and statement of account, that a member-owner is indebted to it. Owners who elect to purchase property within a community scheme are contractually bound by the scheme's rules and Memorandum of Incorporation, including obligations to pay levies when due.

The adjudicator remarked that levies are the 'lifeblood' of an HOA, that directors cannot perform their functions without owner contributions, and that defaulting owners are effectively subsidised by those who pay conscientiously. These comments support the reasoning but were not strictly necessary to the dispositive finding on the proved debt.

The decision illustrates the CSOS's role in enforcing levy obligations in community schemes and reaffirms that homeowners association members are contractually bound by the scheme's governing documents. It also demonstrates the practical application of section 39(1)(e) of the CSOS Act to recover unpaid levies and related charges on documentary evidence where the respondent fails to participate. The matter underscores the importance in South African community schemes law of levy collection for the financial sustainability of an HOA.