The Trustees of The Woods Body Corporate v F D Khumalo

The applicant, The Trustees of The Woods Body Corporate, a body corporate established under the Sectional Titles Schemes Management Act 8 of 2011, brought an application through its managing agent, Whitfields, against the respondent, F D Khumalo, the owner of Unit 304A in The Woods sectional title scheme. The dispute concerned arrear levies allegedly owed by the respondent. The application was brought under section 38 of the Community Schemes Ombud Service Act 9 of 2011 seeking relief under section 39(1)(e) for payment of contributions or other amounts due. The matter was referred directly to adjudication after the respondent failed to respond. The applicant filed a signed mandate authorising the managing agent to act and provided a statement dated 7 November 2023 showing an outstanding amount of R6 769.85. The respondent made no submissions and did not oppose the application.

• Whether the applicant had authority to institute the CSOS proceedings through its managing agent
• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to pay the arrear levies claimed by the body corporate
• Whether the levies and interest claimed were authorised under the STSMA and the management rules
• Whether CSOS had power under section 39(1)(e) of the CSOS Act to order payment of the outstanding amount
• Whether the adjudicator could award costs of enforcement proceedings under section 39 of the CSOS Act

The application was granted. The respondent was ordered to pay R6 769.85 in four equal monthly instalments of R1 692.46 starting on 29 December 2023. If the respondent failed to pay any instalment, the full outstanding balance would immediately become due and payable. The order took effect immediately upon electronic service on the parties. Each party was ordered to pay its own costs.

A body corporate has statutory authority under sections 3(1)(c) and 3(2) of the Sectional Titles Schemes Management Act to require and recover levy contributions from unit owners through CSOS proceedings. Where the body corporate proves authority to institute proceedings and provides uncontested evidence establishing the arrears, an adjudicator may grant relief under section 39(1)(e) of the CSOS Act for payment of the outstanding amount, including duly authorised interest under Management Rule 21(3)(c). Costs of enforcement proceedings do not fall within the relief contemplated by section 39 and must be dealt with by a court.

The adjudicator set out general remarks on evidentiary assessment, namely that only relevant evidence should be considered and that the standard of proof is a balance of probabilities involving credibility and probabilities. These statements were general explanatory observations rather than discrete legal rulings necessary to the outcome. The adjudicator also noted the statutory right of appeal to the High Court under section 57 of the CSOS Act on a question of law only.

The decision illustrates the CSOS adjudication process for recovery of arrear levies in sectional title schemes and confirms that a body corporate may recover unpaid contributions from an owner through the Ombud under the STSMA and CSOS Act. It also shows that managing agents may validly act on behalf of a body corporate when properly authorised, and that adjudicators may order payment of authorised levies and interest but not enforcement costs that fall outside section 39 of the CSOS Act.