Tami Phillips (o.b.o Directors of Pioneer Valley Home Owners' Association) v Lungelo Khumalo

The applicant, Tami Phillips acting on behalf of the Directors of Pioneer Valley Home Owners' Association (PVHOA), brought a dispute-resolution application under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, Lungelo Khumalo, the registered owner of ERF 1020, 14 Corona Street, Rivergate, Western Cape. The dispute concerned unpaid levies owed to the homeowners' association. The applicant alleged that the respondent had not made payment since February 2022 and produced a statement of account showing arrears and related charges in the amount of R2 357.51 as at June 2023. The applicant also stated that reminders had been sent by email and SMS through its managing agent, Lime Property Management, and that ABMS had acted as debt collectors. The applicant sought three forms of relief: payment of the outstanding levy arrears in full, an order compelling the respondent to sign a debit order form for arrears and future monthly levies, and payment of an administration fee of R575.00 to Lime Property Management for lodging the dispute. The respondent filed no submissions, sought no extension, and brought no condonation application, so the matter proceeded as unopposed on the papers after conciliation had failed and a certificate of non-resolution had been issued.

• Whether the respondent was indebted to the applicant for unpaid levies and related charges in the amount of R2 357.51.
• Whether the adjudicator had jurisdiction under section 39 of the CSOS Act to compel the respondent to sign a debit order form for payment of arrears and future levies.
• Whether the applicant was entitled in CSOS proceedings to recover an administration fee of R575.00 as litigation-related costs in the absence of proof of agreement or taxation.
• What order would be just and equitable regarding the time and manner of payment of the arrear levies.

The application succeeded in part. The adjudicator declared that the respondent was indebted to the applicant in the amount of R2 357.51. The respondent was ordered to pay all arrear levies within three months of receiving the order, by paying R785.84 per month for three months, together with current levies, the first payment being due on 1 December 2023. If the respondent defaulted on due date, the full outstanding amount would become immediately due and payable. The applicant's prayers seeking to compel signature of a debit order and payment of the R575.00 administration fee were refused. No costs order was made.

An owner in a homeowners' association is liable to pay levies imposed in terms of the association's constitution, and where the association proves arrears on a balance of probabilities through uncontested documentary evidence, a CSOS adjudicator may grant relief for payment of those arrears under section 39(1)(e) of the CSOS Act. However, the adjudicator's jurisdiction is confined to the remedies expressly authorised by section 39, and relief falling outside that section, such as compelling execution of a debit order, cannot be granted. Further, litigation-related administration or legal costs are not recoverable without proof that they were agreed or properly taxed.

The adjudicator observed that, notwithstanding proof of indebtedness, it was in the interests of justice and fairness to grant the respondent additional time to settle the arrears rather than require immediate lump-sum payment. The adjudicator also made general remarks about evidentiary assessment in civil matters, including relevance, credibility, probabilities, and proof on a balance of probabilities. Beyond the formal refusal of costs, the discussion that administration fees constitute litigation costs and ordinarily require agreement or taxation was broader explanatory commentary supporting the refusal.

This adjudication is significant in the CSOS context because it illustrates the scope and limits of an adjudicator's powers under section 39 of the CSOS Act. It confirms that a homeowners' association may use CSOS proceedings to recover unpaid levies where liability is established by the association's constitution and supporting account records, especially in unopposed matters. At the same time, it underscores that CSOS adjudicators are creatures of statute and cannot grant coercive or ancillary relief not authorised by section 39, such as compelling a debit order to be signed. It also shows that claims resembling legal or administration costs require proof of agreement or taxation before they can be recovered.