Taryn Jones obo Queen Anne Body Corporate v Precious Mnkandla

The applicant, Taryn Jones acting on behalf of Queen Anne Body Corporate through its managing agent, Pal Property Management, brought an application under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, Precious Mnkandla, the owner of section 8 (door 108) in the Queen Anne sectional title scheme in Hillbrow, Johannesburg. The body corporate alleged that the respondent had failed over time to pay levy contributions due to the scheme. It claimed arrear levies of R58 862.49, inclusive of interest at 10.25% per annum. Conciliation failed and a certificate of non-resolution was issued on 6 July 2023, after which the matter was referred to adjudication on the papers. The respondent did not respond to the section 43 request for a response and also failed to provide final written submissions. The applicant submitted a contribution statement and supporting documentation, but the adjudicator found that a portion of the claimed amount, namely R12 668.96 carried forward from April 2018, was not sufficiently supported and had to be deducted from the claim.

• Whether the CSOS had jurisdiction under section 39(1)(e) of the CSOS Act to order payment of arrear levy contributions.
• Whether the respondent, as owner and member of the sectional title scheme, was liable to pay the outstanding levy contributions and interest claimed by the body corporate.
• Whether the applicant had provided sufficient evidence on a balance of probabilities to justify the full amount claimed.
• Whether interest on overdue levies could be charged in terms of Management Rule 21(3)(c).
• Whether fairness and justice warranted allowing payment by instalments rather than immediate payment in full.
• Whether any costs order should be made.

The application was granted in part. The respondent was ordered to pay arrear levy contributions of R46 193.53, inclusive of interest, to the applicant. Payment was to be made in 12 equal monthly instalments of R3 849.46, plus interest at 10.25% per annum, commencing on 1 October 2023 until the debt was fully settled. The instalment arrangement did not affect the respondent's obligation to continue paying current monthly levies and allied charges. If the respondent defaulted, the full outstanding amount would immediately become due and payable. No order as to costs was made.

A body corporate may obtain a CSOS order under section 39(1)(e) for payment of arrear levy contributions and associated interest from a unit owner where the levies were validly raised and the claim is proved on a balance of probabilities. However, only those portions of the claimed arrears that are properly supported by evidence may be awarded. An owner cannot withhold levy payments because of disagreement with the levies, and interest on overdue amounts may be charged where permitted by the applicable management rules and lawful resolution.

The adjudicator remarked that levies are the 'lifeblood' of shared living schemes and that non-payment can destabilise a scheme and prejudice the collective interests of owners. The adjudicator also observed that, given the extraordinary circumstances arising from the Covid-19 pandemic and its aftermath, fairness justified allowing the respondent additional time to pay the debt in instalments rather than ordering immediate payment in full. These remarks were explanatory and discretionary rather than strictly necessary to establish liability.

This adjudication illustrates the CSOS's role in enforcing body corporate levy obligations under section 39(1)(e) of the CSOS Act. It confirms that sectional title owners are liable for validly raised levies and that non-payment threatens the functioning of community schemes. The order also shows that while CSOS may enforce payment, it will scrutinise the evidential basis for the amount claimed and may reduce unsupported portions of a levy account. The case is also practically significant in demonstrating that adjudicators may craft equitable repayment arrangements, including instalments, while preserving the body corporate's right to recover the full debt on default.