The Madison at Amberfield City Body Corporate v M Tsusi and CC Maforevane

The applicant, The Madison at Amberfield City Body Corporate, a body corporate under the Sectional Titles Schemes Management Act 8 of 2011, brought a CSOS application against the registered co-owners of unit 182, M Tsusi and CC Maforevane. The body corporate, acting through its managing agent CSI Property Group under trustee authorisation, alleged that the respondents had failed to pay monthly levies and related ancillary charges. The applicant stated that owners' contributions were necessary for the management and operation of the scheme and that non-payment negatively affected the scheme’s finances. The respondents were allegedly in arrears in the amount of R30 778.26 as at 19 February 2024. The applicant said it had attempted to recover the arrears through internal engagement, including email and personal contact, and had offered payment arrangements, but without success. The respondents did not file a response to the section 43 notice and did not provide final written submissions. The adjudication proceeded on the papers.

• Whether the CSOS adjudicator had jurisdiction under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 to determine a levy arrears dispute between a body corporate and unit owners.
• Whether the applicant proved on a balance of probabilities that the respondents were indebted to it for unpaid levies and ancillary charges in the amount claimed.
• Whether the body corporate was entitled under the STSMA, prescribed management rules, and its conduct rules to require payment of levies and recover arrear amounts from the respondents.
• What repayment order was appropriate in the circumstances, including whether instalment payments should be permitted and whether interest should accrue during the repayment period.

The application succeeded. The adjudicator granted relief under section 39(1)(e) of the CSOS Act and declared that the respondents, jointly and severally, were indebted to the applicant in the amount of R30 778.26 for levies and ancillary charges relating to unit 182 as at 19 February 2024. The respondents were ordered to pay this amount in 12 equal monthly instalments of R2 564.86, commencing on 1 April 2024 and thereafter on the first day of each succeeding month. The order did not affect the respondents’ ongoing obligation to pay current monthly levies and ancillary charges. No interest would accrue on the arrear amount during the instalment period. If the respondents defaulted on any instalment, the full outstanding amount would become immediately due and payable. There was no order as to costs.

A body corporate may obtain relief under section 39(1)(e) of the CSOS Act for unpaid levies and ancillary charges where it proves, on a balance of probabilities, that unit owners are indebted for contributions lawfully due under the STSMA, prescribed management rules, and the scheme rules. Owners in a sectional title scheme are obliged to pay monthly levies necessary for the body corporate to perform its statutory functions, and a CSOS adjudicator may order repayment of arrears, including by instalments, where appropriate.

The adjudicator remarked that owners who purchase into a community scheme commit themselves to paying levies and that defaulting owners are effectively subsidised by compliant members. The adjudicator also observed that the body corporate cannot perform its functions and duties in the absence of funds from unit owners. These comments support the reasoning but were not themselves necessary to the dispositive order.

This determination illustrates the CSOS’s role in enforcing body corporate levy obligations through an accessible statutory dispute-resolution mechanism. It reaffirms that sectional title owners are obliged to contribute to the body corporate’s funds and that persistent arrears may be enforced by adjudication under section 39(1)(e) of the CSOS Act. The matter is practically significant because it shows that, even in the absence of opposition by owners, the adjudicator must still be satisfied on a balance of probabilities, and may grant structured repayment relief while preserving the body corporate’s right to ongoing current levies.