Trustees of Mount Kos Body Corporate v Mpho Gift Motlhoki

The applicant, the Trustees of Mount Kos Body Corporate, is the body corporate of a sectional title scheme and a community scheme under the Sectional Titles Schemes Management Act 8 of 2011 and the Community Schemes Ombud Service Act 9 of 2011. The respondent, Mpho Gift Motlhoki, is the owner of unit 21 in the scheme at Simon Becker Street, Hartbeespoort. The body corporate alleged that the respondent had fallen into arrears on levies and ancillary charges. Monthly levy accounts, arrear reminders, and SMS notifications were sent to the respondent. The applicant sought an order under section 39(1)(e) of the CSOS Act for payment of the outstanding amount. The applicant filed a signed mandate authorising its managing agent and an up-to-date levy history statement showing arrears to March 2024 in the amount of R13 232.20, inclusive of levies, ancillary charges, CSOS levies, and interest. The respondent, despite being invited to make submissions, filed none.

• Whether the CSOS adjudicator had jurisdiction under the CSOS Act to determine the levy arrears dispute between the body corporate and the unit owner.
• Whether the applicant proved on a balance of probabilities that the respondent was indebted to the body corporate for arrear levies and ancillary charges.
• Whether the body corporate was entitled to recover interest on overdue amounts in terms of the applicable trustee resolution and prescribed management rules.
• What payment order should be made to enforce the respondent's obligations while regulating the manner of payment.

Application upheld. The adjudicator found for the applicant and ordered that the respondent owes the applicant R13 232.20 in respect of levies and ancillary charges up to and including March 2024. The amount was ordered to be paid in three equal instalments of R4 410.73 commencing on 1 April 2024, with further payments on 1 May 2024 and 1 June 2024. The respondent was also ordered to continue paying ordinary monthly levies as they fall due. If the respondent defaults on any one payment, the full outstanding amount becomes immediately due and payable. No order as to costs was made.

A body corporate established under the Sectional Titles Schemes Management Act is statutorily empowered and obliged to require and recover contributions from unit owners for the scheme's administrative and reserve funds. Where the body corporate proves, on a balance of probabilities, that a unit owner is in arrears and the claim is supported by levy records and remains uncontested, a CSOS adjudicator may grant an order under section 39(1)(e) of the CSOS Act for payment of outstanding levies, ancillary charges and interest authorised under the prescribed management rules and trustee resolution.

The adjudicator observed that owners who do not pay levies are effectively subsidised by owners who do, and that the body corporate cannot discharge its functions without contributions from owners. The discussion of interest, including quotations from Body Corporate of Nautica v Mispha CC and Davehill (Pty) Ltd Community Development Board, explaining that interest preserves the value of the debt rather than operating as a penalty, was supportive reasoning beyond the core finding on liability.

The decision illustrates the CSOS's role in enforcing levy obligations in sectional title and community schemes. It reaffirms that body corporates have a statutory duty to collect levies and may recover arrear contributions, CSOS levies, ancillary charges and authorised interest through CSOS adjudication. The order also shows the practical use of structured instalment orders to secure compliance while protecting the financial viability of the scheme.