The Trustees of Villa Newlyn Body Corporate v S P Mudyanadzo

The applicant, The Trustees of Villa Newlyn Body Corporate, is the body corporate of a community scheme situated at 8 Forte Street, Georgetown, Germiston, Gauteng. The respondent, S P Mudyanadzo, is the owner of Unit 4 in the scheme. The body corporate alleged that the respondent had fallen into arrears with levy payments and had a history of non-payment, to the extent that a previous CSOS order had already been obtained against him. The applicant, acting through its duly authorised managing agent Mawer Delport pursuant to a trustees' resolution dated 12 July 2022, brought an application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 seeking payment of outstanding arrear levies. CSOS issued a section 43 notice to the respondent on 19 May 2023 inviting a response, but no response was filed. The matter was then referred for adjudication on the papers. The applicant stated that it had sent monthly levy statements, reminders and notices, and had authorised levy collection steps by resolution dated 17 April 2023. It sought payment of R27 149.31 in arrear levies.

• 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 applicant had established, on a balance of probabilities, that the amount of R27 149.31 was due and payable.
• Whether an order under section 39(1)(e) of the CSOS Act for payment of the outstanding amount should be granted.

The application was upheld. The respondent was ordered to pay the applicant R27 149.31 within 30 days of the order. No order as to costs was made.

An owner of a unit in a sectional title scheme is legally obliged, by virtue of ownership and membership of the body corporate, to pay levies necessary for the management and administration of the scheme. Where a body corporate proves on a balance of probabilities that levies are in arrears and due, and the respondent fails to rebut that case, an adjudicator may grant relief under section 39(1)(e) of the CSOS Act ordering payment of the outstanding amount.

The adjudicator observed that failure by owners to pay levies can place the financial viability of the scheme at serious risk and may affect the scheme's ability to pay municipalities and service providers. The adjudicator also remarked that it is not unusual for conduct rules not to contain specific provisions on levies, and that this does not relieve an owner of the duty to contribute. The reference to the right of appeal under section 57 of the CSOS Act was informational and not part of the decision's binding reasoning.

This adjudication reinforces the principle in South African sectional title and community schemes law that payment of levies is an incident of ownership and that a body corporate may use the CSOS dispute-resolution process to recover arrear levies. It illustrates the statutory relationship between the CSOS Act and the Sectional Titles Schemes Management Act, and confirms that non-payment of levies threatens the financial viability of a scheme and may justify coercive relief even where the respondent does not participate in the proceedings.