Trustees of Umoya Body Corporate v Athena Lauren Bam & Cleo Bam

The applicant, the Trustees of Umoya Body Corporate, brought an application under section 38 read with section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 for payment of arrear levies and ancillary charges, including monthly CSOS levies, allegedly owed by the respondents as registered owners of Unit 39 in the Umoya sectional title scheme in Sunninghill, Johannesburg. The body corporate alleged that the respondents were indebted in the amount of R246 038.23 and produced a statement of account in support. The respondents did not file further substantive opposition to the application, but earlier explained that they had fallen into arrears because of financial hardship arising from the COVID-19 period, including job loss, reduced income, hospitalisation, and inability to meet a proposed 50% upfront payment for a repayment arrangement. The respondent indicated an intention to sell the property and sought, in effect, more time to pay, but did not dispute ownership or the existence of the levy debt in principle. A certificate of non-resolution was issued after conciliation failed, and the matter proceeded to adjudication on the papers.

• Whether the CSOS adjudicator had jurisdiction under the CSOS Act to determine the dispute and grant financial relief under section 39(1)(e).
• Whether the respondents, as owners in a sectional title scheme, were liable to the body corporate for arrear levies and ancillary charges.
• Whether the applicant had proved on a balance of probabilities the amount owing by the respondents.
• Whether interest on overdue levies was lawfully chargeable, having regard to the STSMA and prescribed management rules requiring a trustee resolution.
• What payment order would be just and equitable in light of the respondents' financial hardship arising from COVID-19-related circumstances.

The application was granted. The adjudicator declared that the respondents were indebted to the applicant in the amount of R246 038.23 in respect of arrear levies and interest. The respondents were ordered to pay R10 000 per month from 1 January 2024 and on the first day of each month thereafter until the outstanding levies were paid in full. No interest would accrue on the outstanding amount during this repayment period. The order excluded the respondents’ ongoing monthly levy obligations, which remained payable. If the respondents failed to pay any instalment on due date, the full outstanding balance would immediately become due and payable together with applicable interest from the date of default to date of payment. There was no order as to costs.

A registered owner in a sectional title scheme is obliged under the STSMA and the scheme rules to pay levies and related contributions lawfully raised by the body corporate, and such amounts may be recovered through a CSOS adjudication order under section 39(1)(e) of the CSOS Act. Where the body corporate proves the indebtedness on a balance of probabilities, including that contributions became due pursuant to the requisite resolutions, the adjudicator may order payment of arrears and interest. The adjudicator may, in the interests of justice and fairness, structure repayment by instalments and suspend further interest during compliance with that arrangement.

The adjudicator observed that it is common in levy matters to order payment within a few weeks, but that the extraordinary circumstances caused by the COVID-19 pandemic justified a different approach in this case. The adjudicator further remarked that a defaulting owner is effectively subsidised by owners who pay levies conscientiously, and that the body corporate cannot perform its statutory functions without contributions from owners. These comments were explanatory and contextual rather than necessary to the finding of liability.

The decision illustrates the CSOS’s role as a statutory forum for recovery of sectional title levies and confirms the enforceability of body corporate contributions through adjudication rather than ordinary court proceedings. It also reflects a practical and equitable approach in community schemes disputes: while reaffirming that owners are obliged to pay levies and cannot shift the burden to compliant owners, the adjudicator may craft a repayment order tailored to hardship circumstances. The matter is significant in showing how the STSMA, prescribed management rules, and CSOS remedies interact in levy recovery disputes.