Letamo Game Farm v MB Molaba and DB Molaba

Letamo Game Farm, a community scheme/homeowners' association situated in Kromdraai, Mogale City, brought an application under section 38 read with section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for payment of arrear amounts owed by the co-owners of Stand 4 Letamo, MB Molaba and DB Molaba. The applicant alleged that the respondents had failed to pay levies, water charges, and a late building penalty. The applicant stated that it sent monthly invoices, statements, reminder emails, and registered emails requesting payment and warning of collection action. It attached two account statements reflecting arrears: one statement showing R42 590.98 as at 31 May 2023 and another showing R8 840.00 as at 17 May 2023. The respondents, as registered co-owners, did not file any submissions, seek an extension, or apply for condonation. The matter therefore proceeded unopposed on the papers.

• Whether the CSOS adjudicator had jurisdiction under sections 38 and 39(1)(e) of the CSOS Act to determine the levy recovery dispute.
• Whether the respondents, as co-owners in the community scheme, were liable under the applicant's rules to pay levies, water charges, penalties and related amounts.
• Whether the applicant had proved on a balance of probabilities that the respondents were indebted in the amount of R51 430.98.
• Whether the adjudicator should grant immediate payment of the full arrears or structure repayment over time in the interests of justice and fairness.
• Whether any costs order should be made.

The application succeeded. The adjudicator ordered that: (a) the respondent is indebted to the applicant in the amount of R51 430.98; (b) the respondent must pay R4 285.98 per month for 12 months from receipt of the order; (c) the respondent must simultaneously pay current levies together with the arrear instalments, with the first payment due on 1 November 2023; (d) if the respondent fails to pay on the due date, the full outstanding amount becomes immediately due and payable; and (e) there is no order as to costs.

A community scheme owner is contractually bound by the scheme's rules to pay levies, water charges and applicable penalties. Where the association places uncontested documentary proof of indebtedness before the adjudicator, and the owner does not dispute liability, the adjudicator may find the arrears proved on a balance of probabilities and grant relief under section 39(1)(e) of the CSOS Act. The adjudicator may also regulate the manner of payment by instalments where fairness and the interests of justice so require.

The adjudicator's remarks that it was in the interests of justice and fairness to grant the respondent additional time to settle arrear levies, rather than insisting on immediate payment of the full amount, were discretionary observations about the form of relief. The general statements on relevance, credibility, probabilities, and the standard of proof were also ancillary explanatory comments rather than independently binding legal rulings.

This decision illustrates the CSOS's role in enforcing financial obligations within community schemes, especially arrear levies and related charges owed to a homeowners' association. It reaffirms that members' obligations to pay levies and related charges arise from the scheme's governing rules and can be enforced through CSOS adjudication. It also shows that even where liability is established, an adjudicator may tailor relief by permitting instalment payments in the interests of fairness rather than ordering immediate execution for the full amount.