The Executive Committee of Motaganeng Property Owners Association v C Mathebula

The applicant, the Executive Committee of Motaganeng Property Owners Association (MPOA), is a property owners association registered on 8 June 2006 and constituting a community scheme under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act). The respondent, C Mathebula, is the registered owner of Erf 2634 in the scheme and therefore a member of the association in terms of the scheme's Memorandum of Incorporation (MOI). MPOA alleged that the respondent failed to make regular levy payments due under clause 9 of the MOI, resulting in arrears of R11 478.20. The application for dispute resolution was lodged with CSOS on 17 April 2023 under section 39(1)(e) of the CSOS Act for an order requiring payment of a contribution. A certificate of non-resolution was issued on 30 May 2023 after conciliation failed. The respondent did not respond to the allegations despite being directed to do so under section 43 of the CSOS Act and being afforded a further opportunity. The applicant submitted a breakdown of the levy statement in support of its claim.

• Whether the dispute fell within the jurisdiction of the CSOS as a dispute concerning a community scheme under the CSOS Act.
• Whether the respondent, as owner and member of the property owners association, was liable to pay levy contributions imposed under the MOI.
• Whether the applicant had produced sufficient evidence on a balance of probabilities to justify an order under section 39(1)(e) of the CSOS Act for payment of arrear levies.
• Whether a costs order should be made in the circumstances.

The application was granted. The respondent was ordered to pay arrear levy contributions in the amount of R11 478.20 in full on or before 30 April 2024. No order as to costs was made.

A property owners association that qualifies as a community scheme under the CSOS Act may obtain an adjudication order under section 39(1)(e) compelling payment of arrear levies where the owner-member is bound by the scheme's MOI and the applicant proves the indebtedness on a balance of probabilities. The constitution or MOI of such an association gives rise to a contractual relationship between the association and its members, rendering levy provisions enforceable.

The adjudicator observed that non-payment of levies can seriously destabilise a community scheme and that levies are the 'lifeblood' of shared living schemes because they fund maintenance, repair, insurance and security for the collective benefit of owners. The adjudicator also remarked generally that costs orders are more commonly made in dismissals under section 53 than in adjudication orders under section 54.

This adjudication affirms the enforceability of levy obligations in property owners associations falling within the CSOS framework. It reinforces that a scheme's founding documents, such as an MOI, create binding obligations on members and that CSOS has jurisdiction to grant effective relief for unpaid contributions under section 39(1)(e). The order is significant for community scheme governance because it underscores that levy recovery is essential to the sustainability and financial stability of shared living schemes.