Trustees of Belombre Body Corporate v Phumudzo and Londani Nefale

The applicant, the Trustees of Belombre Body Corporate, is the body corporate of a sectional title scheme situated at Belombre, 6 Boom Street, Rustenburg, North West Province. The respondents, Phumudzo and Londani Nefale, are the registered owners of Unit 1 in the scheme. The body corporate brought an application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 seeking relief under section 39(1)(e) for payment of arrear levies and related charges. According to the applicant, monthly levy statements and invoices were sent to the respondents, they were notified of arrears, and a final letter of demand was delivered, but payment was not made and no arrangement was reached. The arrears were initially stated as R3 187.35 as at 13 September 2023, but an updated invoice submitted on 16 October 2023 reflected an increased amount of R4 637.35 due and payable. The respondents filed no submissions despite being invited to do so.

• Whether the respondents, as registered owners in a sectional title scheme, were legally obliged to pay the levies, contributions and charges claimed by the body corporate.
• Whether the body corporate had proved, on a balance of probabilities, that the amount of R4 637.35 was due and payable by the respondents.
• Whether relief under section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 should be granted for payment of outstanding contributions.
• Whether any order should be made as to interest and costs in the circumstances.

The application was granted. The respondents were ordered to pay R4 637.35 to the applicant in three equal instalments of R1 545.78 commencing on 1 December 2023 and thereafter on the first day of each month until 1 February 2024. The order did not affect the respondents’ ongoing obligation to pay regular monthly levies and ancillary charges. No interest would accrue during the permitted payment period, but if the instalment arrangement was not honoured, the full outstanding amount would become immediately payable. No order as to costs was made.

A registered owner of a unit in a sectional title scheme is, by virtue of ownership and membership of the body corporate, legally liable for levies and contributions properly raised under the STSMA. Where the body corporate proves the arrears on a balance of probabilities and there is no credible contrary version, CSOS may grant an order under section 39(1)(e) of the CSOS Act compelling payment of the outstanding amount. The obligation to pay levies is integral to the functioning of the body corporate and cannot be avoided by an owner’s non-compliance.

The adjudicator observed that defaulting owners are effectively subsidised by compliant owners and that such non-payment places undue pressure on the body corporate’s ability to perform its statutory functions for the benefit of all members. The adjudicator also noted, with reference to authority, that a body corporate cannot readily compromise or excuse lawfully due levies and contributions. These remarks explain the policy rationale for strict levy enforcement but were not themselves necessary beyond the finding that the respondents were liable for the proven arrears.

The decision reinforces the principle in South African sectional title and community schemes law that payment of levies is a mandatory incident of ownership and that a body corporate has both the power and the duty to recover arrear contributions through the CSOS process. It also illustrates the practical use of section 39(1)(e) of the CSOS Act as an efficient statutory remedy for levy recovery, especially where owners do not oppose the claim. The order further shows that an adjudicator may grant payment relief while tempering it with an instalment arrangement and temporary suspension of interest.