Mariza Pretorius obo Royal Heights Body Corporate v S Ngqosana

The applicant, Mariza Pretorius of LKPM, acting on behalf of the Royal Heights Body Corporate pursuant to a trustee resolution dated 22 May 2023, brought an application under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act). Royal Heights is a residential sectional title scheme situated in Spruit Street, Kuils River, Cape Town. The respondent, S Ngqosana, is the registered owner of unit 11 and therefore a member of the scheme. The body corporate alleged that the respondent had failed to pay levy contributions over a period of time. As at 17 August 2023, the arrears were stated to be R14 869.09, inclusive of interest calculated at 15.5% per annum. The respondent did not respond to notices issued in terms of section 43 of the CSOS Act or to later opportunities to do so. Conciliation failed and a certificate of non-resolution was issued on 26 September 2023, after which the matter proceeded to adjudication on the papers.

• Whether the CSOS had jurisdiction to determine a dispute concerning unpaid levy contributions in a sectional title scheme under section 39(1)(e) of the CSOS Act.
• Whether the applicant body corporate had established, on a balance of probabilities, that the respondent owed arrear levy contributions and interest.
• Whether the body corporate was entitled to recover overdue levies and interest from the registered owner of the unit.
• Whether any costs order should be made in the adjudication.

The application was granted. The respondent was ordered to pay arrear levy contributions of R14 869.09 in full on or before 29 February 2024. No order as to costs was made.

A body corporate in a sectional title scheme may recover arrear levy contributions, and authorised interest on overdue amounts, from a unit owner through an order under section 39(1)(e) of the CSOS Act where it proves the indebtedness on a balance of probabilities. The obligation to pay levies arises from the body corporate's lawful exercise of its powers under the STSMA and applicable management rules, and an owner cannot lawfully withhold payment merely because the owner disputes the desirability or wisdom of the levies imposed.

The adjudicator observed that levies are the 'lifeblood' of shared living schemes and that non-payment can destabilise a scheme by undermining maintenance, repair, insurance, security and the collective investment of all owners. The adjudicator also made general remarks that parties in section 54 adjudications ordinarily bear their own costs, with adverse costs being more typical in the limited circumstances contemplated by section 53 of the CSOS Act.

The decision reinforces the enforceability of body corporate levy obligations through the CSOS dispute-resolution mechanism. It confirms that unpaid levies and authorised interest are recoverable from unit owners, and underscores the principle in sectional title law that owners may not withhold levies because they disagree with the underlying decisions of the body corporate. It also illustrates the practical role of CSOS adjudication as a cost-effective forum for levy recovery in community schemes.