Trustees of 42 @ Loftus Estate Body Corporate v K Semono

The applicant, the Trustees of 42 @ Loftus Estate Body Corporate, is the body corporate of a sectional title scheme situated in Lotus Gardens, Pretoria. The respondent, K Semono, is the registered owner of unit 40 in the scheme. The body corporate, through its managing agent CSI Property Group, brought an application under section 38 read with section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) for payment of arrear levies and related charges. The applicant alleged that the respondent had failed to pay monthly levies and ancillary charges, despite reminders, calls, text messages and letters of demand, and despite attempts to reach a payment arrangement. The respondent filed no submissions in response. The adjudicator found that the outstanding amount as at 13 February 2024 was R1 934.85, including levies and ancillary charges such as monthly CSOS levies. The scheme rules required payment of levies monthly in advance, and the body corporate had a trustee resolution authorising the charging of interest on overdue amounts, although the final order suspended further interest accrual during the repayment period.

• Whether the CSOS had jurisdiction to adjudicate a dispute concerning arrear levies and ancillary charges within a sectional title scheme under sections 38 and 39(1)(e) of the CSOS Act.
• Whether the applicant body corporate proved on a balance of probabilities that the respondent was indebted for unpaid levies and ancillary amounts.
• Whether the charges claimed, including ancillary charges and interest provisions, were authorised by the scheme rules and the Sectional Titles Schemes Management Act 8 of 2011.
• Whether the applicant was entitled to enforcement costs and costs of the proceedings.

The application was substantially successful. The adjudicator granted relief under section 39(1)(e) of the CSOS Act and ordered the respondent to pay the applicant R1 934.85 in two equal monthly instalments of R967.43 commencing on 1 March 2024, with the second instalment payable on the first day of the succeeding month. The order did not affect the respondent's ongoing obligation to pay regular monthly levies and ancillary charges. No interest would accrue during the repayment period, but if the respondent defaulted, the full amount would become immediately due and payable. The claim for enforcement costs was refused, and there was no order as to costs.

A body corporate in a sectional title scheme is entitled under section 39(1)(e) of the CSOS Act to obtain an order for payment of arrear levies and authorised ancillary charges where it proves, on a balance of probabilities, that a unit owner is indebted. Unit owners are obliged under the Sectional Titles Schemes Management Act and applicable scheme rules to contribute to the body corporate's funds, and failure to do so entitles the body corporate to recover such amounts through CSOS adjudication.

The adjudicator observed that defaulting unit owners are effectively subsidised by compliant owners and that the body corporate cannot perform its functions in the absence of levy income. These remarks explain the practical importance of levy enforcement but were not themselves necessary to the core finding of indebtedness. The adjudicator's reference to the respondent having made 'significant strides' to settle the account also appears as a contextual observation rather than a legal basis for the order.

The matter illustrates the CSOS adjudication process as an accessible enforcement mechanism for body corporates seeking recovery of arrear levies and related charges from defaulting owners. It reaffirms that payment of levies is a core statutory obligation of sectional title owners and that such obligations are essential to the body corporate's ability to discharge its statutory duties. The decision also shows that even where interest and ancillary charges may be authorised by rule or resolution, an adjudicator retains discretion in crafting a fair payment order, including instalments and suspension of further interest during repayment.