The Trustees of Royal Palms Body Corporate v PD Rooi and MP Rooi

The applicant, the Trustees of Royal Palms Body Corporate, brought an application to the Community Schemes Ombud Service (CSOS) in terms of s 38 of the Community Schemes Ombud Service Act 9 of 2011 for payment of arrear levies under s 39(1)(e). The first and second respondents, PD Rooi and MP Rooi, are the co-owners of Unit 6 in the Royal Palms scheme in Paarl, Western Cape. The body corporate alleged that the respondents had made only one payment towards their levies in the previous year and remained indebted in the amount of R32 944.23, as reflected in a detailed ledger dated 30 October 2023. The respondents did not submit responses to the s 43 notice, did not participate in the process, and filed no submissions despite being requested to do so. The matter therefore proceeded to adjudication on the papers.

• Whether the respondents, as co-owners of a unit in the sectional title scheme, were liable to the body corporate for arrear levies.
• Whether CSOS could grant relief under s 39(1)(e) of the CSOS Act ordering payment of the arrear contributions.
• Whether, in the absence of any answering submissions by the respondents, the applicant had proved the indebtedness of R32 944.23 on a balance of probabilities.
• Whether the arrear amount could appropriately be ordered payable by instalments, with acceleration upon default.

The application succeeded. The respondents were declared liable to the applicant for arrear levies in the amount of R32 944.23. They were ordered to pay the arrears in six monthly instalments of R5 490.70 commencing on 1 December 2023 and on the first day of each subsequent month until payment in full. If any instalment was not paid on due date, the full outstanding balance would immediately become due and payable. No order as to costs was made.

An owner of a unit in a sectional title scheme is by virtue of ownership a member of the body corporate and is legally liable for levies validly raised by the body corporate under the Sectional Titles Schemes Management Act. Levy liability is an incident of ownership and may be recovered through a CSOS adjudication under s 39(1)(e) of the CSOS Act. Where the body corporate proves the arrears on a balance of probabilities and the owner advances no contrary evidence, an order for payment may be granted.

The adjudicator’s references to general evidentiary principles concerning relevance, credibility, reliability, and proof on a balance of probabilities were explanatory and ancillary to the decision. The instalment structure and acceleration clause appear to be case-management features of the remedy rather than statements of general legal principle. No substantial wider obiter observations were made beyond noting the statutory right of appeal under s 57 of the CSOS Act.

The adjudication reaffirms, within the CSOS forum, the settled South African principle that liability for body corporate levies is inseparable from ownership of a sectional title unit. It also illustrates the use of s 39(1)(e) of the CSOS Act as an accessible statutory mechanism for bodies corporate to recover arrear contributions from defaulting owners. The order further demonstrates that, where respondents fail to participate, an adjudicator may determine the matter on the papers and grant payment relief based on documentary proof and the statutory obligations imposed by the STSMA.