Leopards Rest Homeowners Association v Nthabiseng Angelina Mmuso

The applicant, Leopards Rest Homeowners Association, a non-profit company and community scheme under the Community Schemes Ombud Service Act 9 of 2011, brought a dispute-resolution application under section 38 of the CSOS Act against the respondent, Nthabiseng Angelina Mmuso, the registered owner of unit 4874 in the scheme. The HOA alleged that despite numerous written demands, the respondent failed to pay monthly levies and ancillary charges due under the scheme’s Memorandum of Incorporation and conduct rules. The applicant submitted a statement of account reflecting arrears of R8 867.71 as at 14 June 2023, including monthly CSOS levies. The respondent did not file any response or submissions. The matter was adjudicated on the papers after the Ombud concluded there was no reasonable prospect of conciliation.

• Whether the respondent, as owner and member of the homeowners association, was liable to pay the outstanding levies and ancillary charges claimed by the applicant.
• Whether the applicant had proved on a balance of probabilities that the respondent was indebted in the amount of R8 867.71.
• Whether relief under section 39(1)(e) of the CSOS Act for payment of contributions or other amounts should be granted.
• What payment terms should be imposed in relation to the arrear levies.

The application succeeded. The respondent was declared indebted to the applicant in the amount of R8 867.71 for levies and ancillary amounts charged as at 14 June 2023. The respondent was ordered to pay that amount in five equal monthly instalments of R1 773.54, the first by 1 September 2023 and the remaining four on the first day of each succeeding month. No interest would accrue during the five-month payment period. The order did not affect the respondent’s ongoing obligation to pay regular monthly levies and ancillary charges. If the respondent defaulted on any instalment, the full outstanding amount would become immediately due and payable. There was no order as to costs.

A homeowners association may obtain relief under section 39(1)(e) of the CSOS Act for payment of arrear levies and ancillary charges where it proves, on a balance of probabilities, through its governing documents and account records, that the owner is indebted. Owners in a community scheme are contractually bound by the scheme’s rules and are obliged to pay levies levied in terms of those rules and the MOI.

The adjudicator observed that levies are the 'lifeblood' of an HOA, that directors cannot perform their functions without owners’ financial contributions, and that defaulting owners are effectively subsidised by compliant owners. These remarks explain the practical importance of levy collection but were not necessary to the formal determination of liability.

This decision is a straightforward but important example of the CSOS adjudication process being used to recover arrear levies in a homeowners association. It reaffirms in the community-schemes context that an owner’s obligation to pay levies arises from the scheme’s governing instruments and the contractual relationship formed when purchasing property in the scheme. It also illustrates that, where an owner does not oppose the claim and the HOA provides supporting records, CSOS may grant enforceable monetary relief under section 39(1)(e) of the CSOS Act, while crafting equitable payment terms.