Trustees of Twee Riviere Village 1 Body Corporate v The Trustees of the Foruss Management Trust

The applicant, Trustees of Twee Riviere Village 1 Body Corporate, is the body corporate of a sectional title scheme contemplated in the Sectional Titles Schemes Management Act 8 of 2011. The respondent, The Trustees of the Foruss Management Trust, is the registered owner of Unit 21 in the scheme at 973 Klippan Road, Montana Gardens, Pretoria. The respondent fell into arrears on its levy account. The applicant's managing agent attempted unsuccessfully to negotiate a payment arrangement. The applicant then brought a dispute-resolution application to the Community Schemes Ombud Service under section 38 of the Community Schemes Ombud Service Act 9 of 2011, seeking relief under section 39(1)(e) for payment of the outstanding amount. The respondent did not respond to notices under the CSOS process and made no submissions. The applicant placed before the adjudicator a trustees' resolution authorising interest on arrear levies in terms of Management Rule 21(3)(c) of the STSMA, and a levy statement reflecting an amount of R19 221.95, including interest, due to the end of December 2023.

• Whether the applicant body corporate proved on a balance of probabilities that the respondent owed the claimed arrear levies and ancillary amounts.
• Whether the applicant was entitled to recover interest on the arrear amount under the STSMA management rules and trustees' resolution.
• Whether an order should be granted under section 39(1)(e) of the CSOS Act directing payment of the outstanding amount.
• Whether it was appropriate to structure repayment over eight months while requiring continued payment of current monthly levies.

Application upheld. The adjudicator found for the applicant and ordered that the respondent owes the applicant R19 221.95, including interest, in respect of levies and ancillary amounts to the end of December 2023. The amount was ordered to be paid over 8 equal consecutive monthly instalments of R2 402.74, commencing on 2 January 2024. The respondent was also ordered to continue paying the usual monthly levies and ancillary charges. If the respondent defaults on any one payment, the full outstanding amount becomes immediately due and payable with interest. No order as to costs.

A body corporate established under the STSMA is entitled and obliged to collect levies and ancillary contributions necessary for the performance of its statutory functions. Where it proves, on a balance of probabilities, that a unit owner is in arrears, and where interest on arrears has been validly authorised under the applicable management rules and trustees' resolution, a CSOS adjudicator may grant relief under section 39(1)(e) of the CSOS Act for payment of the arrear amount including interest. In the absence of any rebuttal by the respondent, the adjudicator may accept the applicant's uncontested evidence as sufficient proof of indebtedness.

The adjudicator observed that defaulting owners are effectively subsidised by compliant owners and that a body corporate cannot perform its statutory duties without sufficient contributions from owners. The adjudicator also endorsed judicial remarks that interest on arrear amounts is not a penalty but serves to compensate for the time-value erosion of money and to protect the equity of the original debt. These observations supported the reasoning but were broader explanatory comments rather than necessary to the order.

This decision is significant in community schemes jurisprudence because it reaffirms the statutory duty of sectional title owners to pay levies and confirms the body corporate's entitlement to recover arrears and interest through the CSOS adjudication process. It illustrates that uncontested levy claims supported by proper documentary proof and a valid trustees' resolution for interest will ordinarily succeed. The decision also demonstrates the practical remedial flexibility of CSOS adjudicators, who may order repayment arrangements while preserving the body corporate's right to current levies and acceleration upon default.