Trustees of Outeniqua Village Body Corporate v Paledi A Moema and Xoliswa E Zondo

The applicant, the Trustees of Outeniqua Village Body Corporate, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondents, Paledi A Moema and Xoliswa E Zondo, who are the registered co-owners of unit 32 in the sectional title scheme. The dispute concerned the respondents' failure to pay monthly levies and ancillary charges owed to the body corporate. The applicant alleged that despite written demands and internal collection efforts, including phone calls, text messages and emails, the respondents failed to settle the arrears. The applicant relied on a trustees' resolution dated 19 April 2022 authorising interest at 2% per month on arrears, and submitted statements of account showing the respondents' indebtedness. No response or written submissions were filed by the respondents. The adjudicator considered the matter on the papers and, after requesting updated information under section 51 of the CSOS Act, considered the latest levy statement dated 31 March 2024.

• Whether the body corporate proved on a balance of probabilities that the respondents were indebted for unpaid levies and ancillary charges.
• Whether the applicant was entitled to relief under section 39(1)(e) of the CSOS Act for payment of contributions or other amounts due.
• Whether the levies, ancillary charges and interest claimed were lawfully chargeable under the Sectional Titles Schemes Management Act 8 of 2011 and the scheme's resolutions/rules.
• Whether an instalment payment order should be granted in respect of the arrears.

The application was granted. The respondents were declared jointly and severally indebted to the applicant in the amount of R36 164.47 as at 31 March 2024 for levies and ancillary charges, including CSOS levies. They were ordered to pay the amount in 12 equal monthly instalments of R1 644.01, commencing on 1 May 2024, with the remaining instalments payable on the last day of each succeeding month. The order did not affect the respondents' ongoing obligation to pay regular monthly levies and ancillary charges. Interest at 2% per month would accrue on any outstanding amount if payment was not made in accordance with the order, and upon default the full outstanding amount would become immediately due and payable. There was no order as to costs.

A body corporate is entitled under section 39(1)(e) of the CSOS Act to an order for payment of arrear levies and authorised ancillary charges where it proves, on a balance of probabilities, that unit owners are members of the scheme, that levies and related charges were lawfully imposed under the STSMA and the scheme's resolutions/rules, and that the owners failed to pay them. In a sectional title scheme, owners are obliged to contribute to the body corporate's funds so that it can perform its statutory functions, and uncontested documentary proof of the arrears is sufficient to justify a payment order.

The adjudicator observed that owners who default on levies are effectively subsidised by compliant owners, and that the body corporate cannot perform its duties in the absence of contributions from unit owners. The order also included a repayment structure by instalments and acceleration upon default, which was a discretionary case-management feature rather than a general legal rule. There is also an apparent drafting error in paragraph 50.5 of the order, which states that if the applicant fails to make payment, interest will accrue; in context, this appears intended to refer to the respondents' failure to pay.

The decision illustrates the CSOS's role in enforcing sectional title levy obligations through paper-based adjudication under the CSOS Act. It reaffirms that unit owners are statutorily obliged under the STSMA to contribute to the body corporate's funds, and that failure to pay levies may be remedied through a section 39(1)(e) order. The case is significant as a practical example of levy-recovery relief, including the granting of instalment-based repayment terms while preserving the body corporate's right to ongoing monthly contributions and interest on arrears.