The Trustees of the Dallas Body Corporate v Mmabatho Lesego Moletsane N.O

The applicant, the Trustees of the Dallas Body Corporate, brought an application under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for payment of arrear levies owed in respect of Unit 103 in the Dallas Body Corporate, Sunnyside, Pretoria. The registered owner of the unit was the estate late MA Moletsane, represented by the respondent, Mmabatho Lesego Moletsane N.O, in her capacity as executrix. The applicant alleged that the estate was in arrears with levies and sought an order compelling payment of the outstanding amount. On behalf of the estate, attorneys explained that the deceased had passed away on 27 July 2022, the estate was still being administered, and there were presently insufficient funds to settle the full claim until the estate’s assets and claims had been finalised and its solvency determined. The estate stated that heirs were making monthly payments of R4 000 to reduce the debt and raised concern that interest and some disputed items may have been incorrectly debited. The adjudicator found it undisputed that the estate remained liable for arrear levies. While the applicant’s updated statement reflected arrears of R82 770.33, the final order recorded liability in the sum of R81 551.19, payable in instalments.

• Whether the estate of a deceased owner, represented by the executrix, was liable to the body corporate for arrear levies in respect of the sectional title unit.
• Whether a body corporate is entitled under section 39(1)(e) of the CSOS Act to obtain an order for payment of outstanding levies from a unit owner or estate owner.
• Whether levy liability attaches to ownership of a sectional title unit notwithstanding the ongoing administration of a deceased estate.
• Whether the applicant was entitled to charge interest on overdue amounts under Prescribed Management Rule 21(3)(c) on the strength of a trustee resolution.

The application was granted. The estate late MA Moletsane was declared liable to the applicant for R81 551.19 in arrear levies. The respondent was ordered to pay this amount in 12 monthly instalments of R6 795.93 commencing on 1 February 2024 and thereafter 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. The order did not affect the respondent’s obligation to continue paying regular monthly levies. No order as to costs was made.

In a sectional title scheme, liability for levies is an incident of ownership and binds the owner, including a deceased estate represented by an executrix. A body corporate may, through CSOS proceedings under section 39(1)(e) of the CSOS Act, obtain an enforceable order for payment of arrear contributions and authorised interest. The ongoing administration of a deceased estate or temporary lack of funds does not extinguish or suspend the estate’s liability for levies lawfully raised by the body corporate.

The adjudicator observed, with reference to Mount Edgecombe Country Club Estate Management Association II (RF) NPC v Singh, that relationships in community schemes are contractual in nature because owners voluntarily agree to be bound by scheme rules when acquiring property. The adjudicator also noted the statutory right of appeal under section 57 of the CSOS Act, but this was not part of the binding determination. There is also an apparent discrepancy between the amount discussed in the reasoning (R82 770.33) and the amount ultimately ordered (R81 551.19), but the judgment does not explain the difference.

The decision confirms, within the CSOS adjudication context, that levy obligations in sectional title schemes attach to ownership and remain enforceable against a deceased owner’s estate. It illustrates the use of section 39(1)(e) of the CSOS Act as a debt-recovery mechanism for bodies corporate and reinforces that financial difficulty or incomplete estate administration does not suspend the estate’s underlying liability for contributions. It also affirms that a body corporate may recover contractual or rule-based interest on overdue levies where properly authorised by trustee resolution.