Trustees of Monterey Body Corporate v Daki ANF

The applicant, Trustees of Monterey Body Corporate, is the body corporate of a sectional title scheme in Richards Bay. The respondent, Daki ANF, is the registered owner of unit 42 in the scheme and therefore a member of the body corporate. The body corporate alleged that the respondent had fallen into arrears with levy and ancillary charge payments. Despite reminders, written demands and other internal efforts to secure payment, the respondent did not pay. The matter was referred to the Community Schemes Ombud Service (CSOS) under section 38 of the Community Schemes Ombud Service Act 9 of 2011 for relief under section 39(1)(e), namely an order for payment of a contribution or other amount. Conciliation failed because the respondent did not engage with CSOS correspondence, and a certificate of non-resolution was issued. The applicant claimed R20 400.89 as at 26 March 2024, supported by its submissions and a latest levy statement requested by the adjudicator. The respondent filed no submissions.

• Whether the CSOS adjudicator had jurisdiction to grant relief under section 39(1)(e) of the CSOS Act for unpaid levies and ancillary charges in a sectional title scheme.
• Whether the applicant proved on a balance of probabilities that the respondent was indebted to the body corporate in the amount of R20 400.89.
• Whether a unit owner may withhold levy payments in the circumstances alleged.
• What payment order should be made in relation to the arrear levies and ancillary amounts, including instalments and consequences of default.

The application succeeded. The adjudicator ordered that the respondent is indebted to the applicant in the amount of R20 400.89 in respect of levies and ancillary amounts for unit 42 as at 26 March 2024. The respondent was ordered to pay that amount in nine equal monthly instalments of R1 700.07 commencing on 1 April 2024, with the remaining eight instalments due on the first day of each succeeding month. The order expressly stated that this does not affect the respondent's ongoing obligation to pay regular monthly levies and ancillary payments. If the respondent defaults on any ordered payment, the full outstanding amount becomes immediately due and payable. There was no order as to costs.

A registered owner in a sectional title scheme, as a member of the body corporate, is obliged to pay monthly levies and ancillary charges lawfully raised in terms of the Sectional Titles Schemes Management Act 8 of 2011 and the applicable rules. Under section 39(1)(e) of the CSOS Act, CSOS may order payment of arrear levies where the body corporate proves the indebtedness on a balance of probabilities. In the absence of any rebutting evidence, a properly supported levy statement is sufficient to found such relief. An owner cannot unilaterally withhold levy payments.

The adjudicator observed that owners who default on levy payments are effectively subsidised by other members who pay conscientiously, and that the body corporate cannot perform its functions and duties in the absence of funds from unit owners. The adjudicator also included practical observations in the order regarding instalment payments, acceleration upon default, and the continuing duty to pay current monthly levies. No extensive separate obiter discussion appears in the ruling.

The decision is a straightforward but useful CSOS enforcement ruling confirming the obligation of sectional title owners to pay levies and ancillary charges and the power of CSOS to order payment under section 39(1)(e) of the CSOS Act. It illustrates that where a body corporate provides adequate documentary proof of arrears and the owner does not respond, the adjudicator may grant recovery relief on the papers. It also reinforces the broader principle in sectional title governance that levies are essential to the functioning of the body corporate and may not be withheld unilaterally by an owner.