The Route 82 Homeowners' Association (R82HOA) is a community scheme established under the Companies Act 71 of 2008, with T Washoma as a member owning unit 116 in the scheme. R82HOA requested an adjudication order for the payment of arrear levies from Washoma amounting to R7,120.67, including interest at 1.25% per month. Washoma failed to respond to initial notices and subsequent opportunities provided by CSOS.
An order was granted for T Washoma to pay the arrears of R7,120.67 by 29 February 2024. No costs were awarded to either party.
The court established that a member of a community scheme is liable for levies as determined by the association's MOI, and failure to pay can lead to an order being granted in terms of section 39(1)(e) of the CSOS Act.
The court noted that non-payment of levies can destabilize a scheme and negatively affect all members' collective interests. It also stated that parties are generally expected to cover their own costs, with cost orders only issued in specific circumstances.
This case highlights the enforcement mechanisms available under the Community Schemes Ombud Service Act for community schemes and emphasizes the importance of members adhering to their financial obligations within such schemes.