Trustees of Hazelmere Body Corporate v Solange Katengwa

The applicant, Trustees of Hazelmere Body Corporate, brought an application under s 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, Solange Katengwa, the registered owner of Unit 3 in the Hazelmere sectional title scheme in Rivonia, Gauteng. The body corporate alleged that the respondent had fallen into arrears with levies and related charges. It relied on an updated customer ledger, conduct rules, an interest and levy resolution, legal reminders, and a resolution authorising representation. According to the applicant, as at 1 November 2023 the respondent owed R18 875.53, comprising arrear levies and ancillary charges including interest, CSOS levies, administration/debt collection charges, and related costs. The applicant stated that telephonic reminders had been made and that the respondent had indicated payment would be made by 21 September 2023, but no payment followed. The respondent filed no submissions despite being afforded an opportunity to do so.

• Whether the applicant body corporate had proved that the respondent was indebted to it for arrear levies and ancillary charges in the amount claimed.
• Whether an order under s 39(1)(e) of the CSOS Act should be granted for payment of contributions or other amounts due.
• Whether the body corporate had placed sufficient supporting documentation before the adjudicator to justify that the monies claimed were due and owing.
• Whether the interest charged on arrears was permissible under Management Rule 21(3)(c) and the relevant trustee resolution.
• Whether administration, debt collection and legal reminder charges were recoverable under the management rules and applicable law.

The application was upheld. The adjudicator ordered that the respondent owes the applicant R18 875.53 and must pay that amount in 12 equal monthly instalments of R1 572.96. The first payment must be made within 30 days of receipt of the adjudication order, and the remaining 11 instalments on the first day of each succeeding month. No interest will accrue during the permitted payment period, but if the respondent defaults on any instalment the full outstanding amount becomes immediately payable with interest. The amount includes interest charged under Management Rule 21(3)(c) and costs incurred under Annexure B of the Debt Collectors Act. The order does not affect the respondent's ongoing obligation to pay regular monthly levies and ancillary charges. No order as to costs was made.

A body corporate is entitled under the STSMA and CSOS Act to recover arrear levies and ancillary amounts from a unit owner where it proves, through supporting records, resolutions and rules, that the contributions and charges are due and owing. Levy liability arises as an incident of ownership and may be enforced through a CSOS order under s 39(1)(e). Interest on arrears and reasonable collection-related charges are recoverable where authorised by the management rules and trustee resolutions and are not inconsistent with applicable statutory limits.

The adjudicator remarked that defaulting owners are effectively subsidised by compliant owners because levies are the 'life blood' of a body corporate. The adjudicator also observed that, although the respondent's non-payment was not condoned, it was practically fair to permit payment by instalments, provided that ordinary ongoing levies remained payable and that default would trigger immediate acceleration of the full debt. The exact official law report citation is not available because this appears to be an unpublished CSOS adjudication order rather than a reported court judgment.

The decision illustrates the CSOS adjudication process as an effective mechanism for body corporates to recover arrear levies and related charges without first resorting to ordinary court litigation. It reinforces South African sectional title principles that levy liability is a statutory incident of ownership, that bodies corporate must collect contributions to fulfil their statutory functions, and that properly authorised interest and reasonable collection costs may be recoverable if supported by resolutions and rules. It also reflects a pragmatic remedial approach by permitting instalment payments while preserving the body corporate's right to enforce the debt.