The Trustees of Soetdoringpark Body Corporate v N Shezi

The applicant, the Trustees of Soetdoringpark Body Corporate, is the body corporate of a sectional title scheme. The respondent, N Shezi, is the registered owner of Unit 44 in the scheme situated at Geelhout Avenue, Doringkruin, Klerksdorp, North West. The body corporate alleged that the respondent had fallen into arrears on his levy account. It sent arrear reminders, a final demand, and notified the respondent that the matter would be referred to the Community Schemes Ombud Service (CSOS), but no payment was made. The applicant, acting through its managing agent under a signed mandate, lodged an application under section 38 of the CSOS Act seeking an order in terms of section 39(1)(e) for payment of the outstanding levies and related charges. The respondent did not file any submissions in response. The applicant produced an up-to-date levy history statement showing an amount of R19 794.91 outstanding as at February 2024, including interest and ancillary charges such as CSOS levies.

• Whether the CSOS adjudicator had jurisdiction under the CSOS Act to determine a levy arrears dispute between a body corporate and a unit owner.
• Whether the applicant proved on a balance of probabilities that the respondent was indebted to the body corporate for outstanding levies and ancillary amounts.
• Whether the body corporate was entitled to recover interest on overdue amounts under the applicable statutory and management rule framework.
• What payment order should be made in light of the respondent's non-payment and failure to participate in the proceedings.

Application upheld. The adjudicator found for the applicant and ordered that the respondent owes the applicant R19 794.91 in respect of levies and ancillary charges, including CSOS levies and interest. The amount is payable in 9 equal monthly instalments of R2 199.43, commencing on 1 March 2024, with the remaining 8 instalments due on the first day of each consecutive month thereafter. The order states that regular ongoing monthly levies and ancillary charges remain payable, that interest is already included in the outstanding amount, and that upon default of any one instalment the full outstanding balance becomes immediately due and payable. There was no order as to costs.

A body corporate of a sectional title scheme is statutorily entitled and obliged under the STSMA to require owners to pay levies and contributions necessary for the administration, maintenance and financial functioning of the scheme. Where the body corporate proves, on a balance of probabilities, that a unit owner is in arrears, and the owner does not dispute the claim, a CSOS adjudicator may grant an order under section 39(1)(e) of the CSOS Act for payment of the outstanding levies, ancillary charges and authorised interest. Interest validly charged under the applicable management rule and trustee resolution is recoverable as part of the debt.

The adjudicator made broader observations that owners who do not pay levies are effectively subsidised by compliant owners, and that a body corporate cannot perform its duties without funds from unit owners. The order also repeated judicial commentary from prior cases that interest on arrears is compensatory and not penal in nature, and remarked that the purpose of the order was to bring closure to the dispute while considering both the respondent's rights and duties. These comments supported the reasoning but were not independently necessary to the dispositive finding on the proved arrears debt.

This decision is a practical example of the CSOS adjudication mechanism being used to enforce body corporate levy obligations under the CSOS Act and the STSMA. It reinforces the principle that sectional title owners are obliged to contribute to the financial administration of the scheme and that levy arrears, ancillary charges and authorised interest are recoverable through CSOS proceedings. It also illustrates that where a respondent does not participate, the adjudicator may accept the applicant's uncontested evidence and grant relief on a balance of probabilities. The decision is significant in community schemes practice for showing that repayment may be structured by instalment while preserving the body corporate's right to accelerate the debt upon default.