Trustees of Brelades Body Corporate v Vanessa De Jager

The applicant, the Trustees of Brelades Body Corporate, brought an application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, Vanessa De Jager, an owner of Unit 2 and Unit 4 in the Brelades Body Corporate scheme. The body corporate alleged that the respondent had failed to pay levies and related amounts due in respect of her units. The arrears arose from resolutions adopted at special general meetings, including a resolution on 30 July 2022 that repair costs for the East Wing of the building amounting to R89 696,25 be apportioned among owners according to participation quota, and a resolution on 18 March 2023 establishing a reserve fund and approving costs to bring the scheme’s financial records up to date. The applicant produced meeting resolutions, an interest resolution, and account statements showing that as at 1 September 2023 the respondent owed R51 662,63 inclusive of interest. The respondent did not deny liability for the levy contributions, but stated that she lacked funds and asked that the interest be reversed and that she be allowed to pay the original amount over time or upon sale of the property.

• Whether the respondent was liable to pay the outstanding levies and interest claimed by the body corporate in the amount of R51 662,63.
• Whether the levies and special contributions relied upon by the applicant had been validly approved and were recoverable under the CSOS Act and the Sectional Titles Schemes Management Act 8 of 2011.
• Whether the CSOS adjudicator had jurisdiction to reverse or waive interest approved by the body corporate.
• Whether it was appropriate to structure payment of the debt in instalments rather than as a single immediate payment.

The application was upheld. The respondent was ordered to pay the applicant R51 662,63, inclusive of interest, in 8 equal instalments of R6 457,82 commencing on 1 October 2023 and ending on 1 May 2024. If the respondent failed to make the required payments, the full amount would immediately become due and payable. No order as to costs was made.

Where a body corporate proves that levy and special contribution obligations were validly adopted by resolution and provides account statements showing the amount due, and the owner does not dispute liability, the amount is recoverable under section 39(1)(e) of the CSOS Act. In terms of section 3 of the Sectional Titles Schemes Management Act 8 of 2011, owners are obliged to contribute to the administrative and reserve funds and to duly imposed special contributions. CSOS may order payment of such arrears and may structure the repayment in instalments, but it does not have authority to reverse interest validly approved by the body corporate.

The adjudicator observed that the respondent appeared unwilling, for whatever reason, to pay the outstanding levies. The adjudicator also remarked that payment upon sale of the property would be unenforceable and therefore unsuitable as relief. In support of the contractual nature of scheme governance, the adjudicator referred to Mount Edgecombe Country Club Estate Management Association Two (RF) NPC v Singh and Others [2019] ZASCA 30 and Body Corporate of Central Park v Mosa, noting that owners who voluntarily acquire property in a scheme agree to be bound by its rules and financial obligations.

The case confirms the enforceability of body corporate levies, special contributions, reserve fund contributions, and approved interest through the CSOS dispute resolution process. It illustrates that where an owner does not dispute the indebtedness arising from duly adopted body corporate resolutions, CSOS may grant payment relief under section 39(1)(e) of the CSOS Act. The order is also significant for clarifying, at adjudicator level, that CSOS will not reverse interest validly approved within the governance structures of the scheme, although it may exercise a practical discretion to allow payment by instalments.