Executive Committee of Falcon View Homeowners Association v L. Mokoena and L.L. Setshedi

The applicant, the Executive Committee of Falcon View Homeowners Association (FVHOA) NPC, is the governing homeowners association of the Falcon View HOA in Hartbeespoort, North West Province. The respondents, L. Mokoena and L.L. Setshedi, are the registered owners of unit E678/68 in the scheme. FVHOA brought an application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 seeking relief under section 39(1)(e) for payment of arrear levies and ancillary charges. The applicant alleged that the respondents were in arrears with levy payments, that a final letter of demand dated 9 August 2023 had been sent, and that the respondents had failed to comply with the HOA's rules and management provisions requiring payment of monthly levies. The amount initially said to be owing was R23 083.12, but in final written submissions the applicant amended the amount claimed to R25 951.44, being the amount due as at 1 November 2023. The respondents did not dispute liability on the merits; instead, they contacted CSOS and requested to pay the arrears in four equal instalments, while continuing to pay current monthly levies separately.

• Whether the respondents, as owners in the homeowners association scheme, were bound by the FVHOA's rules and management provisions requiring payment of levies.
• Whether the applicant had proved on a balance of probabilities that the respondents were in arrears and liable to pay the amount claimed.
• Whether section 39(1)(e) of the CSOS Act empowered the adjudicator to order payment of the arrear levies and ancillary amounts.
• Whether it was appropriate to permit payment of the arrears in instalments while preserving the respondents' ongoing obligation to pay current levies.

The application was granted. The respondents were ordered, jointly and severally, to pay the applicant R25 951.44 in four equal instalments of R6 487.86, commencing on 1 December 2023 and on the first day of each subsequent month until 1 March 2024. The order did not affect the respondents' ongoing obligation to pay regular monthly levies and ancillary charges. No interest would accrue during the payment period, but if the respondents defaulted, the full outstanding amount would become immediately payable. No order as to costs was made.

A registered owner in a homeowners association is bound by the association's MOI, rules and levy resolutions by virtue of ownership within the community scheme. Where the HOA proves, on a balance of probabilities, that levies and ancillary charges are due and unpaid, and there is no substantive contrary version, an adjudicator under section 39(1)(e) of the CSOS Act may order payment of the outstanding amount. The adjudicator may regulate the manner of payment, including instalments, while preserving the owner's continuing obligation to pay current levies.

The adjudicator observed that levies are the 'lifeblood' of a homeowners association and that directors cannot perform their functions without funds from members. The adjudicator also made broader remarks, with reference to case law, that the relationship between owners and community associations is contractual in nature, while also flowing from statutory authority. These comments provided context for the enforceability of the rules but were not strictly necessary beyond the finding that the respondents were bound to pay the proven arrears.

The decision illustrates the enforcement function of the Community Schemes Ombud Service in levy disputes within homeowners associations. It reaffirms that owners in community schemes are bound by the association's governing instruments and levy obligations, and that CSOS adjudicators may grant payment orders under section 39(1)(e) for arrear levies and related charges. It also shows a practical use of adjudicative discretion to structure payment by instalments without undermining the enforceability of levy obligations.