Trustees of iLanga Place Body Corporate v LPS Molonyama

The applicant, the Trustees of iLanga Place Body Corporate, is the body corporate of a sectional title scheme in Montana, Pretoria. The respondent, LPS Molonyama, is the registered owner of unit 4 in the scheme. The body corporate brought an application to the Community Schemes Ombud Service (CSOS) under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for payment of arrear levies and ancillary charges allegedly owed by the respondent. The applicant alleged that despite notices by text message and email, the respondent failed to pay levies due to the scheme and was in arrears in the amount of R24 081.23 as at 19 February 2024. The applicant also asked, failing payment, that the unit be attached and sold in execution. The respondent did not file a response to the section 43 notice and did not provide final written submissions. The adjudicator considered the matter on the papers and requested further information, including the latest levy statement, from the applicant.

• Whether the applicant proved on a balance of probabilities that the respondent was indebted to the body corporate for arrear levies and ancillary charges in the amount claimed.
• Whether CSOS had jurisdiction under section 39(1)(e) of the CSOS Act to grant an order for payment of arrear levies and related amounts.
• Whether CSOS had jurisdiction to grant the additional relief sought directing attachment and sale in execution of the respondent's property.
• What payment terms, if any, should be ordered in relation to the arrear amount.

The application was substantially granted. The respondent was declared indebted to the applicant in the amount of R24 081.23 for levies and ancillary charges in respect of unit 4 as at 19 February 2024, and was ordered to pay that amount in 12 equal monthly instalments of R2 006.77 commencing on 1 March 2024, with the remaining instalments due on the first day of each succeeding month. The order did not affect the respondent's ongoing obligation to pay current monthly levies and ancillary charges. No interest would accrue on the arrear amount during the instalment period, but on default the full outstanding amount would become immediately due and payable. The relief seeking sale in execution of the unit was refused. There was no order as to costs.

A body corporate may obtain relief under section 39(1)(e) of the CSOS Act for payment of arrear levies and ancillary charges where it proves the indebtedness on a balance of probabilities. CSOS adjudicators may grant financial orders compelling payment of such amounts, including structuring payment by instalments, but they cannot grant relief that falls outside the powers conferred by the CSOS Act, such as ordering sale in execution of a unit. Unit owners are legally obliged under the Sectional Titles Schemes Management Act framework to contribute levies necessary for the body corporate to perform its statutory functions.

The adjudicator observed that owners who default on levy payments are effectively subsidised by other members of the body corporate who pay conscientiously, and that the scheme may face dire financial constraints if levies are not paid. These comments underscore the practical consequences of non-payment but were not themselves necessary to the jurisdictional and indebtedness findings. The adjudicator also noted the general evidentiary approach that relevant evidence must be assessed on credibility and probabilities.

The decision is significant in the community schemes context because it confirms CSOS's jurisdiction to grant levy-recovery relief under section 39(1)(e) of the CSOS Act while also marking the limits of that jurisdiction. It illustrates that body corporates may use CSOS as a forum for obtaining enforceable payment orders for arrear levies, but that remedies such as attachment and sale in execution must be pursued through a competent court or lawful enforcement process outside CSOS's adjudicative powers. The decision also reinforces the importance of levy contributions to the statutory functioning of a sectional title body corporate under the STSMA.