Taryn Jones obo Queen Anne Body Corporate v Lehlohonolo Ezekiel Phoshoko Trust

The applicant, Taryn Jones acting on behalf of Queen Anne Body Corporate through its appointed managing agent, Pal Property Management, brought a dispute resolution application under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act). Queen Anne Body Corporate is a registered sectional title scheme development situated in Hillbrow, Johannesburg. The respondent, Lehlohonolo Ezekiel Phoshoko Trust, is the owner of section 136 in the scheme and therefore a member of the body corporate. The body corporate alleged that the respondent had failed over time to pay levies due in respect of the unit. The arrear levy contribution claimed was R46 624.02, inclusive of interest at 10.25% per annum. The applicant submitted a contribution statement and alleged that requests for payment had been ignored, internal remedies had been exhausted, and the trustees had resolved to pursue recovery through CSOS. The respondent did not respond to the section 43 request for a response and also failed to submit final written submissions. A certificate of non-resolution was issued after conciliation failed, and the matter proceeded to adjudication on the papers.

• Whether the CSOS had jurisdiction under sections 38 and 39(1)(e) of the CSOS Act to determine the levy dispute.
• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to pay the arrear levy contributions claimed by the body corporate.
• Whether the applicant had produced sufficient evidence on a balance of probabilities to justify an order for payment of arrear levies and interest.
• Whether it was appropriate to grant immediate payment or allow payment by instalments in the circumstances.
• Whether any costs order should be made.

The application was granted. The respondent was ordered to pay arrear levy contributions of R46 624.02 to the applicant in 12 equal monthly instalments of R3 885.33, plus interest at 10.25% per annum, commencing on 1 October 2023 until the full arrear amount is settled. If the respondent defaults, the full outstanding amount immediately becomes due and payable. No order as to costs was made.

A body corporate in a sectional title scheme is entitled, under the STSMA, applicable management rules, and section 39(1)(e) of the CSOS Act, to recover duly raised arrear levies and interest from an owner who has failed to pay. Where the applicant provides sufficient documentary proof of the indebtedness and the respondent offers no answer, the claim may be granted on a balance of probabilities. An owner may not withhold levies because of disagreement with the levy decision.

The adjudicator observed that levies are the lifeblood of shared living schemes and that non-payment can seriously destabilise a scheme and prejudice all owners. The adjudicator also commented that, although immediate payment is common in such matters, the extraordinary circumstances following the Covid-19 pandemic justified affording the respondent more time to settle the debt. These remarks informed the remedial discretion but were not necessary to establish liability.

This decision reinforces the principle in South African community schemes law that owners in sectional title schemes are obliged to pay levies duly raised by the body corporate and that CSOS has jurisdiction to grant recovery orders for arrear contributions under section 39(1)(e) of the CSOS Act. It also illustrates the Ombud adjudication process after failed conciliation and shows that, while levy obligations are strictly enforceable, adjudicators may craft equitable payment arrangements such as instalments where fairness requires it.