Trustees of Kalgaro Body Corporate v S Cao

The applicant, the Trustees of Kalgaro Body Corporate, is the body corporate of a sectional title scheme at Kalgaro, Swallows Drive, Fourways, Gauteng. The respondent, S Cao, is the registered owner of unit 125 in the scheme and therefore a member of the body corporate. The body corporate alleged that the respondent had fallen into arrears with levies, contributions and related charges. It sent arrears and final demand letters, first claiming R31 030.18 and later R34 112.29, and relied on the respondent's statutory obligation under the Sectional Titles Schemes Management Act 8 of 2011 (STSMA) and clause 15 of the scheme's conduct rules to pay levies monthly in advance. The applicant approached the Community Schemes Ombud Service under s 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) for an order under s 39(1)(e) for payment of arrear amounts. The respondent filed no written submissions despite being invited to do so. During the adjudication process, the applicant submitted an amended invoice showing that the amount outstanding as at 1 October 2023 was R17 649.56.

• Whether the dispute fell within the jurisdiction of the CSOS under the CSOS Act as a community scheme financial dispute.
• Whether the respondent, as a unit owner and member of the body corporate, was legally obliged under the STSMA and the scheme rules to pay levies and contributions.
• Whether the applicant had proved on a balance of probabilities that the respondent was in arrears and liable for payment.
• What amount was properly recoverable by the body corporate on the papers, given the amended invoice reducing the claim to R17 649.56.
• Whether payment should be ordered immediately or by instalments, and whether interest should accrue during the payment period.

The application was granted. The respondent was ordered to pay R17 649.56 to the applicant in six equal instalments of R2 941.59 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 allowed payment period, but if the respondent defaulted on the instalment arrangement, the full outstanding amount would become immediately payable. No order as to costs was made.

A unit owner in a sectional title scheme is, by virtue of ownership, a member of the body corporate and is legally obliged under the STSMA and applicable scheme rules to pay levies, contributions and related charges when due. A body corporate is entitled to approach the CSOS under s 39(1)(e) of the CSOS Act to recover arrear contributions. Where the body corporate proves the indebtedness on a balance of probabilities and the respondent offers no competing version, an order for payment may be granted for the amount shown to be due on the evidence before the adjudicator.

The adjudicator observed that defaulting owners are effectively subsidised by owners who pay timeously and that such defaults place undue pressure on the body corporate's administration of the scheme. The adjudicator also noted, with reference to Zikhalala v Selma Court, that a body corporate cannot readily compromise or excuse lawfully due levies and contributions. These broader comments explain the policy rationale for strict enforcement but were not strictly necessary beyond the finding that the proved arrears were payable.

The decision illustrates the CSOS's role as a statutory forum for recovery of sectional title levy arrears and confirms the routine enforcement of owners' obligations under the STSMA and scheme rules. It reinforces that body corporates depend on levy collections to fulfil statutory duties and that owners who default may be compelled to pay through CSOS adjudication. The order is also significant in showing that the adjudicator may grant relief based on the updated amount proved on the papers rather than the amount originally claimed, and may structure payment by instalments while preserving the body corporate's rights.