The applicant, Leopard Rock Home Owners' Association, 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 levies and related charges from the respondent, Dennis Banda, the registered owner of Portion 22, Door 37 Eeufees Street, South Crest, Alberton. The HOA alleged that the respondent had failed to pay monthly levies and recoverable consumable charges, with arrears accumulating from January 2023. Despite SMSs, final notices and a notice of action, the arrears remained unpaid. The HOA produced a statement of account showing an amount of R12 652.45 outstanding as at 16 October 2023. It also sought ancillary relief for interest and various collection, administrative and legal costs. The matter was referred directly to adjudication on the papers. The respondent filed no submissions, sought no extension, and brought no condonation application, with the result that the matter proceeded unopposed.
The application succeeded in part. The adjudicator ordered that: (a) the respondent is indebted to the applicant in the amount of R12 652.45; (b) the respondent must pay all arrear levies within six months of receiving the order; (c) the respondent must pay R2 108.74 per month for six months, simultaneously with current monthly levies, with the first payment due on 1 December 2023; (d) if the respondent defaults on due dates, the full outstanding amount becomes immediately due and payable; and (e) no order as to costs. The applicant's claim for collection, administrative and legal costs was refused.
A homeowner in a community scheme is obliged to pay levies in accordance with the HOA's rules, and where the association proves arrears by documentary evidence on a balance of probabilities, an adjudicator may order payment of those arrears and applicable interest. However, collection and legal costs are not recoverable merely because they are claimed; such costs must be supported by agreement or proper taxation, failing which relief for them should be refused.
The adjudicator observed generally that only relevant evidence should be considered and that proof is assessed on a balance of probabilities by reference to credibility and probabilities. The adjudicator also noted, in general terms, that any dissatisfied party may appeal to the High Court under section 57 of the CSOS Act, but only on a question of law. Although the adjudicator indicated an inclination to order payment of interest on the arrear amount, the final operative order did not separately quantify or expressly include an interest award beyond recognizing the indebtedness and repayment terms.
The matter is significant in the community schemes context because it reinforces that homeowners' association members are bound by the scheme's rules and remain liable for levies necessary for the scheme's financial functioning. It also illustrates the CSOS adjudicative approach to unopposed levy-recovery claims, including reliance on documentary proof and the balance of probabilities. Importantly, it confirms that while arrear levies and rule-based interest may be recoverable through CSOS, claims for legal or collection costs will not be granted without proper proof such as a taxed bill or agreement, reflecting orthodox South African costs principles.