Trustees of Thatchfield Plains Body Corporate v MV Dikgale

The applicant, the Trustees of Thatchfield Plains Body Corporate, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, MV Dikgale, the registered owner of unit 22 in the scheme. The body corporate alleged that despite numerous written demands, the respondent had failed or neglected to pay monthly levies and ancillary charges, including CSOS levies, and claimed an outstanding amount of R10 709.15 up to 22 March 2024. The respondent stated that payment arrangements had been made with the managing agent and complained that utility charges had increased sharply due to an alleged leak issue. The respondent had engaged a leak detector at personal cost, but said that this charge was then also added to the owner’s account. The respondent sought a deduction of allegedly unfair charges for water, sewerage and interest so that only fair charges would remain payable. Upon considering the papers, the adjudicator found that one disputed charge of R986.30 appearing on the January 2024 levy statement should be excluded, with the result that the respondent remained indebted, but in a reduced amount.

• Whether the respondent was indebted to the body corporate for arrear levies and ancillary charges in respect of unit 22.
• Whether the body corporate had proved the amount owing on a balance of probabilities.
• Whether a disputed charge relating to the leak detector or utility-related billing could lawfully be debited to the respondent’s account.
• What order should be made under section 39(1)(e) of the CSOS Act for payment or repayment of contributions or any other amount.
• Whether payment should be ordered immediately or by instalments, and whether interest should accrue during the repayment period.

The application was granted under section 39(1)(e) of the CSOS Act. The respondent was declared indebted to the applicant in the amount of R9 722.85 as of 11 January 2024 for levies and ancillary charges relating to unit 22. The respondent was ordered to pay this amount in six equal monthly instalments of R1 620.47 commencing on 1 April 2024, with the remaining instalments payable on the first day of each succeeding month. The order did not affect the respondent’s obligation to continue paying regular monthly levies and ancillary charges. No interest would accrue during the instalment period, and if the respondent defaulted on any instalment, the full outstanding amount would immediately become due and payable. There was no order as to costs.

A body corporate is entitled to recover levies and properly raised ancillary charges from a unit owner through a CSOS order under section 39(1)(e) of the CSOS Act where indebtedness is proved on a balance of probabilities. However, amounts appearing on an owner’s account that are not shown to be valid contributions or charges levied in terms of the applicable legislation or rules, or otherwise properly authorised, may not be included in the recoverable amount. An adjudicator may therefore grant payment relief for the proven portion of the debt only and structure repayment by instalments.

The adjudicator observed that owners who default on levies are effectively subsidised by compliant owners and that a body corporate cannot perform its statutory duties without adequate funds from unit owners. These remarks explain the policy rationale for levy enforcement but were not themselves necessary to the determination of the precise amount owing.

The decision is a practical example of CSOS adjudication in sectional title levy disputes. It confirms the enforceability of body corporate levy claims through the CSOS mechanism under section 39(1)(e) of the CSOS Act, while also demonstrating that an adjudicator will scrutinise the statement of account and disallow disputed charges not properly justified. The matter illustrates the interaction between the CSOS Act, the Sectional Titles Schemes Management Act, and Prescribed Management Rule 25(5) in regulating owner liability for levies and ancillary charges.