The Trustees of Belhar Views Body Corporate v T. Arendse

The applicant, the Trustees of Belhar Views Body Corporate, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against T. Arendse, the owner of unit 445 in the Belhar Views scheme. The body corporate alleged that the respondent had failed to pay monthly levies and was in arrears in the amount of R48 573,47 as at 1 November 2023. The applicant submitted account statements and asserted that attempts had been made to recover the debt. The respondent was invited to file written submissions but failed to respond by the deadline of 9 November 2023 and provided no explanation for the default. After conciliation failed and a certificate of non-resolution was issued, the matter proceeded to adjudication on the papers.

• Whether the CSOS adjudicator had jurisdiction under section 39(1)(e) of the CSOS Act to order payment of outstanding levy contributions.
• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to the body corporate for arrear levies.
• Whether the applicant had established on a balance of probabilities that the amount of R48 573,47 was due and payable.
• Whether interest on overdue levies could be claimed as part of the relief, although the operative order focused on the levy amount.

The application succeeded. The adjudicator upheld the relief sought by the applicant and ordered the respondent to pay R48 573,47 in outstanding levies to the applicant in 8 equal instalments of R4 047,78 commencing on 1 December 2023, with the last instalment due on 1 July 2024. If the respondent defaulted on the instalment arrangement, the full outstanding amount would immediately become due and payable. No order as to costs was made.

An owner of a unit in a sectional title scheme is liable to pay levies validly raised by the body corporate, because levy liability is an incident of ownership. Under section 39(1)(e) of the CSOS Act, where a body corporate proves on a balance of probabilities that levy contributions are due and unpaid, a CSOS adjudicator may order the owner to pay the arrears.

The adjudicator referred more broadly to the statutory and contractual nature of membership obligations in community schemes, including authorities on owners being bound by scheme rules and provisions permitting the charging of interest and recovery of legal costs. To the extent these observations were not necessary to decide the uncontested levy claim or were not fully reflected in the operative order, they are obiter. The order mentions interest in the introductory summary, but the final operative order specifies payment of the levy amount only, so any wider discussion of interest was not essential to the decision.

The decision illustrates the CSOS's role as a statutory forum for the efficient recovery of body corporate levies from defaulting owners. It reaffirms a settled principle in South African sectional title law: levy liability attaches to ownership of a unit and is enforceable by the body corporate through CSOS proceedings. The order also shows that, in uncontested matters, documentary proof such as account statements may suffice to establish indebtedness on a balance of probabilities.