Trustees of Outeniqua Village Body Corporate v Philani Siphoesihle Shabangu

The applicant, the Trustees of Outeniqua Village Body Corporate, acting through its managing agent Selection Estates, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, Philani Siphoesihle Shabangu, the registered owner of unit 50 in the sectional title scheme SS259/2008 in Springs, Gauteng. The dispute arose from the respondent's failure to pay monthly levies and related ancillary charges due to the body corporate. The applicant alleged that despite numerous written demands and internal collection efforts, including phone calls, text messages and emails, the respondent did not make full payment of levies, causing the arrears to increase monthly. The applicant submitted a trustees' resolution dated 19 April 2022 authorising interest at 2% per month on arrear amounts, and provided a statement of account showing arrears of R11 649.91 as at 31 March 2024, including levies and ancillary amounts such as CSOS levies. The respondent filed no submissions and did not place any version before the adjudicator.

• Whether the body corporate proved on a balance of probabilities that the respondent was indebted for unpaid levies and ancillary charges.
• Whether relief under section 39(1)(e) of the CSOS Act should be granted for payment of contributions or other amounts due to the body corporate.
• Whether the applicant was entitled to recover arrear levies and ancillary charges on the papers in the absence of any response from the respondent.
• Whether interest and instalment-based repayment could appropriately be ordered in terms of the adjudicator's powers.

The application succeeded. The adjudicator granted the relief sought under section 39(1)(e) of the CSOS Act. The respondent was declared indebted to the applicant in the amount of R11 649.91 as at 31 March 2024 in respect of levies and ancillary amounts charged for unit 50. The respondent was ordered to pay that amount in 7 equal monthly instalments of R1 941.65, commencing on 1 May 2024, with the remaining 6 instalments payable on the last day of each succeeding month. The order expressly stated that regular monthly levies and ancillary payments remained payable in addition to the instalments. Interest at 2% per month would accrue on any outstanding amount in the event of default, and upon default the full outstanding amount would become immediately due and payable. No order as to costs was made.

A body corporate in a sectional title scheme is entitled to recover arrear levies and authorised ancillary charges from a unit owner through a CSOS adjudication order under section 39(1)(e) where it proves, on a balance of probabilities, the owner's indebtedness by documentary evidence such as levy statements and relevant resolutions. Unit owners are legally obliged under the Sectional Titles Schemes Management Act to contribute to the funds necessary for the body corporate to perform its statutory functions, and persistent non-payment justifies an order for payment, including repayment by instalments and interest on default where properly authorised.

The adjudicator observed that a defaulting owner is effectively subsidised by other owners who pay levies conscientiously, and that a body corporate cannot perform its duties in the absence of funds from unit owners. These remarks explain the policy rationale for enforcing levy obligations, but were not themselves necessary beyond the finding that the debt had been proved. The reference to the right of appeal under section 57 of the CSOS Act was also informational rather than part of the operative reasoning. Additionally, order paragraph 48.6 appears to contain a likely drafting error by referring to the applicant failing to make payment, when the context indicates the respondent was intended.

This matter illustrates the CSOS adjudication mechanism for recovery of arrear levies in sectional title schemes. It confirms the enforceability of body corporate levy obligations through section 39(1)(e) of the CSOS Act and underscores that owners are obliged to contribute to the financial functioning of the scheme under the Sectional Titles Schemes Management Act. The decision is practically significant for community schemes because it demonstrates that, where documentary proof of indebtedness is provided and the respondent does not meaningfully oppose the claim, CSOS may grant payment orders including structured instalment arrangements, continuing liability for current levies, and contractual or rule-based interest on default.