Trustees of Savuti Sands Body Corporate v GMK Sekome

The applicant, the Trustees of Savuti Sands Body Corporate, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 against the respondent, GMK Sekome, the owner of unit 80 in the Savuti Sands scheme in Sunninghill, Gauteng. The applicant alleged that the respondent had failed to pay monthly levies and remained in arrears despite arrear letters and a final demand having been sent. The body corporate sought relief under section 39(1)(e) of the CSOS Act for payment of arrear levies. The respondent did not file any submissions in response to the CSOS notice. The applicant provided a detailed ledger reflecting arrears of R16 079.57 and a signed trustee resolution authorising the charging of interest at 10.5% per annum, compounded monthly.

• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to the body corporate for unpaid levy contributions.
• Whether the applicant had proved on a balance of probabilities that the respondent owed arrear levies in the amount of R16 079.57.
• Whether the body corporate was entitled to charge interest on the overdue amounts under Prescribed Management Rule 21(3)(c) pursuant to a trustee resolution.
• What payment order should be made under section 39(1)(e) of the CSOS Act in the absence of any opposing version from the respondent.

The application was granted. The respondent was declared liable to the applicant in the sum of R16 079.57, inclusive of interest, in respect of levy arrears. The respondent was ordered to pay the amount in 3 monthly instalments of R5 359.85 commencing on 1 December 2023 and on the first day of each succeeding month until full payment. If any instalment was not paid on due date, the full outstanding balance of R5 359.85 would immediately become due and payable. No order as to costs was made.

An owner of a unit in a sectional title scheme is, by virtue of ownership and membership of the body corporate, liable for levy contributions lawfully raised by the body corporate under the Sectional Titles Schemes Management Act. Where the body corporate proves arrear levies on a balance of probabilities and shows proper authority to charge interest under PMR 21(3)(c), CSOS may order payment of the arrears and interest under section 39(1)(e) of the CSOS Act. In the absence of a rebutting version from the respondent, the applicant's documentary proof may suffice to establish the debt.

The adjudicator made general observations about the standard of proof in adjudication proceedings, namely that relevant evidence must be assessed on a balance of probabilities with regard to credibility and probabilities. The order also noted the statutory right of appeal under section 57 of the CSOS Act, limited to questions of law. Beyond these procedural observations, the adjudication contains little by way of substantive obiter.

This adjudication confirms the routine but important principle in South African community schemes law that a unit owner's obligation to pay levies flows from ownership itself and may be enforced through CSOS proceedings. It also illustrates CSOS's power to grant monetary relief for arrear levies under section 39(1)(e) of the CSOS Act, including interest where properly authorised under the prescribed management rules. The order demonstrates that, where an owner does not oppose the claim and the body corporate provides a ledger and trustee resolution, CSOS may grant payment relief on the papers.