De Velde Body Corporate v Raseleta Kgosi Rallele

The applicant, De Velde Body Corporate, represented by its managing agent Whitfield Property Management, brought an application under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for payment of arrear levies owed by the respondent, Raseleta Kgosi Rallele, an owner in the scheme. The body corporate alleged that the respondent owed R7 241.55 as reflected in the levy statement dated 14 August 2023. The applicant stated that the respondent had been notified of the arrears and payment obligations through SMSs and emails, including reminders after 30 and 60 days and warnings that legal action would follow if payment was not made. The applicant submitted the statement of account and communication log as proof of indebtedness. The respondent filed no submissions, sought no extension, and brought no condonation application, with the result that the matter proceeded as unopposed on the papers.

• Whether the applicant body corporate established, on a balance of probabilities, that the respondent was indebted for arrear levies in the amount of R7 241.55.
• Whether relief could properly be granted under section 39(1)(e) of the CSOS Act for payment of contributions or other amounts due to the body corporate.
• Whether the body corporate was entitled to interest on the overdue amount under management rule 21(3) and the applicable trustee resolution.
• Whether, despite the unopposed nature of the matter, fairness justified allowing payment of the arrears by instalments rather than immediate lump-sum payment.
• Whether any order as to costs should be made.

The application was upheld. The adjudicator ordered that the respondent is indebted to the applicant in the amount of R7 241.55 plus interest; that the respondent must pay the debt in three equal monthly instalments of R2 413.85 commencing on 7 January 2024 until paid in full; that the respondent must simultaneously pay current levies while paying off the arrears; that if the respondent defaults, the full outstanding amount becomes immediately due and payable; and that there is no order as to costs.

An owner in a sectional title or community scheme is legally obliged to pay levies raised by the body corporate, and where the body corporate proves arrears on a balance of probabilities, CSOS may grant relief under section 39(1)(e) of the CSOS Act for payment of the outstanding amount together with authorised interest. In an unopposed matter, where the respondent does not challenge the applicant's evidence, the adjudicator may accept the applicant's version if it is supported by relevant documentation and is probable. The adjudicator may also regulate the manner of payment by instalments where fairness and the interests of justice so require.

The adjudicator's remarks that waiving interest may have an adverse effect on the financial well-being of the scheme and compliant owners, and that it was in the interests of justice and fairness to grant the respondent additional time to pay, are ancillary observations rather than strictly necessary to the finding of liability. The reference to the possibility of appeal to the High Court on a question of law is procedural information and not part of the ratio.

The decision reaffirms, in the CSOS context, that payment of levies is an inherent incident of sectional title ownership and that a body corporate may obtain statutory relief under section 39(1)(e) of the CSOS Act to recover arrear contributions. It also illustrates CSOS procedure in unopposed matters decided on the papers and shows that, even where the applicant proves its claim, an adjudicator may structure payment terms in the interests of fairness rather than requiring immediate payment in one amount. The order further confirms the recoverability of interest on overdue levies where properly authorised under the management rules.