Sunningdale Homeowners' Association v Thabisile Ngcobo

The applicant, Sunningdale Homeowners' Association (SHOA), is a residential community scheme governed by a constitution and rules. The respondent, Thabisile Ngcobo, is the owner of unit 2205 in the scheme and, by virtue of ownership, a compulsory member of SHOA. Under the scheme constitution, members are obliged to pay monthly levy contributions for the administration and expenses of the scheme. SHOA alleged that the respondent had fallen into arrears on levy contributions in the amount of R2225.54, reflected on the September 2023 statement. The application for dispute resolution was lodged with the Community Schemes Ombud Service on 12 September 2023 in terms of section 38 of the Community Schemes Ombud Service Act 9 of 2011, seeking a financial order under section 39(1)(e) for payment of the arrears. A section 43 notice was issued to the respondent, but she failed to respond or provide any explanation for the non-payment. After a certificate of non-resolution was issued on 28 November 2023, the matter proceeded to adjudication on the papers.

• Whether the CSOS had jurisdiction to entertain the dispute under the CSOS Act.
• Whether the respondent, as an owner and compulsory member of the homeowners' association, was liable to pay levy contributions under the scheme constitution.
• Whether the applicant had proved on a balance of probabilities that the respondent was indebted to it in the amount of R2225.54 in arrear levies.
• Whether an order should be granted under section 39(1)(e) of the CSOS Act for payment of the outstanding contribution.
• Whether a costs order should be made.

The application was granted. The respondent was ordered to pay arrear levy contributions to the applicant in the amount of R2225.54 on or before 31 May 2024. No order as to costs was made.

An owner in a homeowners' association community scheme is, by virtue of compulsory membership under the scheme constitution, legally obliged to pay levy contributions determined in terms of that constitution and rules. Where the association proves the arrears on a balance of probabilities, and the owner fails to dispute or explain non-payment, the adjudicator may grant a payment order under section 39(1)(e) of the CSOS Act. The constitution and rules of the association create a contractual relationship binding the member to those obligations.

The adjudicator observed that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme by undermining maintenance, repairs, insurance, security and the collective interests of owners. The adjudicator also made general comments that parties before CSOS are usually expected to bear their own costs, with costs orders being more common in matters dismissed as frivolous, vexatious, misconceived or without substance. These remarks were explanatory and not necessary to the dispositive finding on liability for the arrears.

The matter illustrates the CSOS's role in providing a statutory dispute-resolution mechanism for community schemes, particularly for the recovery of outstanding levies under section 39(1)(e) of the CSOS Act. It reinforces that homeowners' associations may enforce levy obligations through CSOS adjudication and that ownership in such schemes carries compulsory membership and financial obligations under the scheme constitution. The order also reflects the reliance on South African appellate authority confirming the contractual nature of the relationship between a homeowners' association and its members.