Trustees of Marbeth Court Body Corporate v G.M. & K.L. Kelly

The applicant, the Trustees of Marbeth Court Body Corporate, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondents, G.M. and K.L. Kelly, who are the registered owners of Unit 2 in Marbeth Court. The body corporate alleged that the respondents had failed to pay monthly levies and had fallen into arrears. According to the applicant, several attempts were made through its debt-collection division to reach an arrangement with the owners, but no responsive communication was received. The applicant relied on its levy statement showing arrears of R121 313,19 calculated up to 1 December 2023. The respondents filed no response despite being invited to do so, and the matter proceeded on the papers after a certificate of non-resolution had been issued.

• Whether the CSOS adjudicator had jurisdiction under section 39(1)(e) of the CSOS Act to order payment of outstanding levies.
• Whether the respondents, as owners in a sectional title scheme, were legally obliged to pay levy contributions raised by the body corporate.
• Whether the applicant had established, on a balance of probabilities, that levies in the amount of R121 313,19 were due and payable by the respondents.
• Whether interest on the overdue levies could be included as part of the amount recoverable.

The application succeeded. The adjudicator ordered the respondents to pay the outstanding levy amount of R121 313,19 to the applicant in 12 equal instalments of R10 109,43 commencing on 1 January 2024, with the last instalment due on 1 December 2024. If the respondents fail to make the instalment payments, the full amount becomes immediately due and payable. No order as to costs was made.

An owner of a unit in a sectional title scheme is legally obliged to pay levies validly raised by the body corporate, because levy liability is an incident of ownership under the Sectional Titles Schemes Management Act and related management rules. Under section 39(1)(e) of the CSOS Act, a CSOS adjudicator may order payment of arrear levies and associated interest where the body corporate proves, on a balance of probabilities, that the amount is due and payable.

The adjudicator referred generally to the contractual and voluntary nature of participation in community and sectional title schemes, noting from cited authority that purchasers who choose to acquire property in such schemes accept the applicable rules and restrictions. The order also accommodated the respondents by allowing repayment over 12 instalments, which appears to be a discretionary practical arrangement rather than a necessary legal principle.

The matter illustrates the enforcement role of the Community Schemes Ombud Service in levy-collection disputes within sectional title schemes. It reaffirms that owners are bound by the statutory and rule-based levy regime attaching to sectional title ownership, and that a body corporate may recover arrear levies through CSOS adjudication where owners default and do not meaningfully dispute the claim. The decision is also practically significant because it demonstrates that adjudicators may determine such matters on the papers where respondents fail to participate.