Eden Ridge Body Corporate v TL Mlambo

Eden Ridge Body Corporate, a sectional title body corporate for a residential scheme in Edenvale, Gauteng, brought an application under section 38 read with section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for recovery of arrear levy contributions from TL Mlambo, the registered owner of unit 11. The body corporate, acting through its authorised managing agent pursuant to a trustee resolution dated 6 July 2023, alleged that the respondent had failed over a period of time to make regular levy payments due in respect of his unit. As at October 2023, the outstanding amount was R16 448.80. The respondent did not settle the arrears despite requests and also failed to respond to the CSOS notice issued under section 43 calling for a response. Conciliation failed, a certificate of non-resolution was issued on 22 December 2023, and the matter was referred to adjudication on the papers.

• Whether the CSOS had jurisdiction under the CSOS Act to determine the dispute concerning unpaid levy contributions.
• Whether the applicant body corporate had established, on a balance of probabilities, that the respondent owed arrear levy contributions in the amount claimed.
• Whether an order should be made under section 39(1)(e) of the CSOS Act compelling payment of the outstanding levies.
• Whether any order as to costs should be made in the circumstances.

The application was granted. The respondent was ordered to pay arrear levy contributions of R16 448.80 in full on or before 30 April 2024. No order as to costs was made.

A body corporate in a sectional title scheme may obtain relief under section 39(1)(e) of the CSOS Act for payment of arrear levies where it places sufficient evidence before the adjudicator showing that levies were validly raised and remain unpaid, and the respondent fails to rebut that evidence. Levy obligations are integral to the administration of a community scheme, and an owner may not withhold payment merely because the owner disputes the desirability or wisdom of the levies.

The adjudicator remarked generally that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme by affecting maintenance, insurance, security, and the collective investment of owners. The adjudicator also observed, for completeness, that Management Rule 21(3)(c) allows a body corporate, on written trustee resolution, to charge interest on overdue amounts as prescribed by the National Credit Act. These remarks were explanatory and not necessary to the core finding ordering payment of the arrears.

The decision reinforces the enforceability of body corporate levy obligations through the CSOS adjudication process. It underscores that unpaid levies threaten the functioning of community schemes and that, where a body corporate proves the indebtedness and the owner does not place a dispute before the adjudicator, CSOS will grant payment orders under section 39(1)(e). It also reflects the principle in sectional title law that owners cannot simply withhold levies because they disagree with decisions underlying those levies.