Paulina Ninkie Skhosana v Executive Committee of Melkbosch Village Homeowners Association

Ms Paulina Ninkie Skhosana, owner of unit 23 in the Melkbosch Village Homeowners' Association (MVHOA) scheme, became a member of the association by virtue of ownership. She alleges that after the transfer of her property on 5 July 2022 the previous managing agent failed to inform her of levy obligations, and she did not receive levy statements until January 2023. She therefore disputes liability for levies accrued between registration and January 2023 and seeks an order that those contributions were incorrectly determined or unreasonable and that they be adjusted. The MVHOA Executive Committee contends that levy liability arises automatically from the date of registration, irrespective of receipt of statements, and that the levies charged are proper. The dispute was referred to an adjudicator under the Community Schemes Ombud Service Act (CSOS) after conciliation failed.

• Whether the applicant’s relief sought under section 39(1)(c) of the CSOS Act is appropriate given the facts
• Whether levies charged from the date of registration (5 July 2022) to January 2023 are unreasonable or incorrectly determined
• Whether the adjudicator may dismiss the application as "without substance" under section 53(1)(a) of the CSOS Act
• Whether costs should be awarded against the applicant

The application is dismissed; each party bears its own costs.

A member’s liability to pay levies arises from the date of registration of the property; levies charged from that date are not automatically unreasonable, and an application for adjustment under section 39(1)(c) will be dismissed as without substance where the relief sought is not properly defined or justified.

The adjudicator referred to Constitutional Court jurisprudence on the meaning of "reasonableness" (Bato Star Fishing v Minister) and to Bushwillow Park Home Owners v Fernandes on the standards of reasonableness and capriciousness, emphasizing the importance of levies to the financial stability of community schemes.

The decision clarifies that levy obligations in community schemes arise automatically upon registration of a unit, regardless of whether the owner receives a levy statement, and that applications for relief must be clearly grounded in the statutory relief provisions. It also illustrates the adjudicator’s power to dismiss applications that lack substance under the CSOS Act.