Sunset Heights Body Corporate v Z Luthuli and Z M Goba

The applicant, Sunset Heights Body Corporate, represented by Alta Van Heerden of National Letting Property Management, brought an application under section 38 read with section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act). The first and second respondents, Z Luthuli and Z M Goba, were co-owners of a unit in the Sunset Heights sectional title scheme. The body corporate alleged that the respondents had fallen into arrears with levies and water charges in the amount of R24 788.86. According to the applicant, the respondents had previously made an arrangement to pay R3 000 per month but failed to adhere to it, and they did not respond to emails reminding them of their obligations. The applicant attached a statement of account as proof of indebtedness. The matter was referred directly to adjudication without conciliation in terms of the CSOS Practice Directive. The respondents filed no submissions, sought no extension, and brought no condonation application, with the result that the matter proceeded unopposed on the papers.

• Whether the respondents, as co-owners of a unit in the scheme, were liable to the body corporate for outstanding levies and water charges in the amount of R24 788.86.
• Whether the adjudicator should grant relief under section 39(1)(e) of the CSOS Act for payment of outstanding contributions or other amounts due to the body corporate.
• Whether, despite the applicant seeking payment of the full arrears, it was just and equitable to structure repayment by instalments.
• Whether a costs order should be made in the circumstances.

The application was upheld. The adjudicator ordered that: (1) the respondents are indebted to the applicant in the amount of R24 788.86; (2) the respondents must pay R4 131.48 per month for six months from receipt of the order; (3) the respondents must simultaneously pay current levies alongside the instalments, with the first payment due on 1 December 2023; (4) if the respondents fail to pay on due date, the full outstanding amount becomes immediately due and payable; and (5) no order as to costs was made.

Owners of units in a sectional title scheme are legally obliged to pay levies and related charges raised by the body corporate, since levy liability attaches to ownership of the unit. Where a body corporate proves, on a balance of probabilities, that arrear amounts are due, an adjudicator under section 39(1)(e) of the CSOS Act may order payment of the outstanding amounts, including by structured instalments if fairness so requires.

The adjudicator's comments that it was in the interests of justice and fairness to afford the respondents additional time to settle the arrears were discretionary observations concerning the manner of payment rather than necessary to establishing liability. The notice setting out the right of appeal to the High Court under section 57 of the CSOS Act was also explanatory and not part of the binding reasoning on the merits.

This adjudication confirms the enforceability of levy and related contribution obligations within sectional title and community schemes through the CSOS dispute-resolution framework. It illustrates that a body corporate may obtain relief under section 39(1)(e) of the CSOS Act for arrear levies and water charges, and that ownership of a unit carries an inherent statutory liability for levies. The matter also shows CSOS's practical approach of granting payment plans in suitable cases while still vindicating the body corporate's right to recover scheme debts.