Trustees of Elwood Body Corporate v Mokone Family Trust

The applicant, the Trustees of Elwood Body Corporate, is the body corporate of a sectional title scheme situated at Elwood, 199 Uys Street, Rynfield Extension 106, Benoni. The respondent, Mokone Family Trust, is the registered owner of Unit 13 in the scheme. The body corporate brought an application under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) for payment of arrear levies, contributions, charges and related amounts allegedly owed by the respondent. The applicant stated that it had sent arrears and final demand letters during February 2023, referring to substantial arrears and invoking the respondent's obligations under PMR 25(2)(a) of the Sectional Titles Schemes Management Act 8 of 2011 (STSMA) and clause 20 of the scheme's conduct rules. The respondent filed no submissions despite being invited to do so. The applicant initially sought payment of R36 209.92, later placed updated invoices before the adjudicator showing an amended amount of R33 948.18 outstanding as at 1 October 2023.

• Whether the respondent, as owner of a unit in the sectional title scheme, was legally obliged under the STSMA and the scheme rules to pay levies and contributions to the body corporate.
• Whether the body corporate was entitled under section 39(1)(e) of the CSOS Act to an order for payment of arrear levies and related charges.
• What amount, on the evidence before the adjudicator, was owing, due and payable by the respondent.
• Whether any payment arrangement and interest relief should be granted in the order.

The application was granted. The respondent was ordered to pay the applicant R33 948.18 in six equal instalments of R5 658.03 commencing on 1 December 2023 and thereafter on the first day of each month until 1 May 2024. The order expressly did not affect the respondent's ongoing obligation to pay regular monthly levies and ancillary charges. No interest would accrue during the permitted payment period, but if the respondent defaulted, the full outstanding amount would become immediately payable. No order as to costs was made.

An owner of a unit in a sectional title scheme is, by virtue of ownership and membership of the body corporate under the STSMA, legally obliged to pay levies and contributions validly raised under the statute and scheme rules. Where the body corporate proves arrears on a balance of probabilities and there is no substantive answer from the owner, CSOS may grant relief under section 39(1)(e) of the CSOS Act ordering payment of the outstanding amount, including structuring the payment terms.

The adjudicator observed that a body corporate can function in the interests of all members only if all members pay what is due, and that defaulting owners are effectively subsidised by compliant owners. The adjudicator also commented that allowing members to avoid payment places undue pressure on the body corporate and undermines the administration of the scheme. These broader remarks about fairness and scheme governance were supportive observations rather than the direct basis of the order. Additionally, the discussion of the right of appeal under section 57 of the CSOS Act was explanatory and not part of the substantive decision.

This adjudication illustrates the CSOS's role as a statutory forum for the recovery of arrear levies in sectional title schemes. It reaffirms a central principle of South African sectional title law: levy liability attaches to ownership and bodies corporate are obliged to collect contributions necessary for the administration and maintenance of the scheme. The matter also shows that, where an owner fails to place a contrary version before the adjudicator, documentary proof of arrears may suffice to obtain relief under section 39(1)(e) of the CSOS Act.