The applicant, Thornhill Estate Homeowners Association, a non-profit company and community scheme under the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act), brought an application under sections 38 and 39(1)(e) of the CSOS Act against the respondent, Shilowa J.P., the registered owner of stand 4418 Thornhill, Veldspaat, Bendor, Polokwane, Limpopo. The association alleged that the respondent owed arrear levies of R11,218.62 as at 2 November 2023 and that numerous demands for payment had been sent. The respondent did not file written submissions despite being requested to do so. The matter was adjudicated on the papers under the CSOS practice directives. The association relied on its Memorandum of Incorporation, which entitled it to determine levies and required owners to pay levies monthly in advance, with interest and administration charges on arrears.
The application was granted. The respondent was declared indebted to the applicant in the amount of R11,218.62 for arrear levies and ordered to pay that amount in four equal monthly instalments of R2,804.65. The first payment was due within 30 days of delivery of the order, with the remaining three payments due on the first day of each succeeding month. These payments were in addition to the respondent's ongoing monthly levy obligations. No penalties would accrue during the instalment period, but if the respondent defaulted on any instalment, the full outstanding balance would immediately become due and payable together with applicable penalties from the date of breach. No order as to costs was made.
A homeowners association, as a community scheme under the CSOS Act, is entitled under section 39(1)(e) to obtain an adjudication order for payment of arrear levies where its constitutive documents lawfully impose levy obligations on members and the evidence establishes indebtedness on a balance of probabilities. An owner/member is bound by the association's Memorandum of Incorporation, and liability for levies arises from those governing instruments.
The adjudicator observed that the homeowners association cannot perform its functions and duties in the absence of funds from owners. The order also reflected a discretionary, pragmatic approach by allowing repayment in instalments and suspending penalties during compliance, but these accommodations were ancillary to the core finding of liability rather than statements of binding principle.
The matter illustrates the CSOS adjudication process for levy recovery in homeowners associations and confirms the enforceability of levy obligations arising from an association's Memorandum of Incorporation. It is significant for community schemes because it reaffirms that owners are bound by the scheme's governance instruments and that CSOS may grant payment orders under section 39(1)(e) of the CSOS Act, including structured instalment relief where appropriate. It also reflects the practical application of the Sable Hills principle in the CSOS context.