The Trustees of Elwood Body Corporate v AC Higgins

The applicant, the Trustees of Elwood Body Corporate, brought an application under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for recovery of arrear levies from the respondent, AC Higgins, the owner of unit 66 in the Sabuti scheme at 199 Uys Street, Rynfield Extension 106, Benoni. The body corporate alleged that the respondent was in arrears with levy payments in the amount of R5 281.00, as reflected in a statement of account dated 3 November 2023. A signed resolution authorised Debt Management Services to lodge the application. The respondent did not file a response to the CSOS notice under section 43 and did not provide written submissions when requested. The matter was therefore referred directly to adjudication and decided on the papers.

• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to the body corporate for arrear levies.
• Whether CSOS could grant relief under section 39(1)(e) of the CSOS Act for payment of outstanding levies.
• Whether the applicant had established, on a balance of probabilities, that the respondent owed R5 281.00 in arrear levies.
• Whether the applicant was entitled to charge interest on overdue levies under Prescribed Management Rule 21(3)(c) based on a trustee resolution.

The application was granted. The respondent was declared liable to the applicant in the sum of R5 281.00 in respect of arrears and was ordered to pay that amount on or before 30 December 2023. No order as to costs was made.

An owner of a unit in a sectional title scheme is a member of the body corporate and is legally obliged to pay levies arising from ownership. Under section 39(1)(e) of the CSOS Act, read with sections 2 and 3 of the Sectional Titles Schemes Management Act, a body corporate may recover unpaid levies through CSOS adjudication. Where the applicant provides proof of arrears and the respondent offers no contrary version, the adjudicator may find the debt established on a balance of probabilities. A body corporate may charge interest on overdue amounts if duly authorised by written trustee resolution in terms of PMR 21(3)(c).

The adjudicator made general remarks on evidentiary standards, including that only relevant evidence should be considered and that disputes are determined on a balance of probabilities by assessing credibility and probabilities. The adjudicator also noted the applicant's entitlement to continue charging monthly interest at 7.75% per annum compounded monthly until the account is settled in full, although that continuing interest was not expressly included in the operative part of the final order.

The decision reaffirms within the CSOS framework that levy obligations in sectional title schemes attach to ownership and are recoverable by a body corporate through ombud adjudication when an owner defaults. It also illustrates that, where a respondent fails to participate, uncontested documentary proof of arrears may suffice to obtain a payment order. The adjudication further recognises the body corporate's entitlement to charge interest on overdue amounts where properly authorised by trustee resolution under the prescribed management rules.