CSOS 1819 GP 23 Adjudication Order

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ADJUDICATION ORDER IN TERMS OF SECTION 54 OF THE COMMUNITY SCHEMES

OMBUD SERVICES ACT NO.9 OF 2011

Ref:CSOS1819/GP/23

IN THE MATTER BETWEEN

LETAMO GAME FARM APPLICANT

and

MB MOLABA 1ST RESPONDENT


DB MOLABA 2ND RESPONDENT

________________________________________________________________________

ADJUDICATION ORDER

________________________________________________________________________

EXECUTIVE SUMMARY.

Relief applied for in terms of the CSOS Act:


Section 39(1)(e) (1) In respect of financial issues — (e) an order for the payment or re-
payment of a contribution or any other amount.

Date referred to Adjudication:


NOT PROVIDED
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Ref:CSOS1819/GP/23

Date Adjudication conducted:


29 SEPTEMBER 2023

Name of the Adjudicator:


ANTHONY TSHABALALA

Order:
The relief sought by the Applicant against the Respondent is upheld insofar as it relates to
prayer (a) and (b)1 with the conditions set out in this order.

The Applicant seeks an order in the following terms;

(a) That it is requesting full payment of the outstanding accounts, including interest and all legal
fees. If applicable, owner should also be informed that levies are payable on the 1st of every
month and never later than the 7th of the current month.

The relief sought by the Applicant against the Respondent is upheld insofar as it relates to
prayer (a)

The Respondent is indebted to the Applicant for an amount of R51 430.98;

The Respondent is ordered to pay R4 285.92 for a period of 12 months of receiving this
order;

The Respondent shall simultaneously pay the current levies parallel to the payment of the
outstanding levies in terms of this order. First date of payment is 01 November 2023.

Should the Respondent fail to make payments on due date of the levy account, then the
full amount shall become immediately due, owing and payable; and

No order is made as to cost.

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Ref:CSOS1819/GP/23

INTRODUCTION

1. The Applicant is Letamo Game Farm which is situated at unit 131, Kromdraai Road,
Kromdraai, Mogale City, GAUTENG PROVINCE

2. The first (1st) Respondent, M B Molaba, is the registered co-owner of Stand 4 Letamo,
Kromdraai Road, Mogale City, GAUTENG PROVINCE.

3. The second (2nd) Respondent is D B Molaba, the registered co-owner of Stand 4 Letamo,
Kromdraai Road, Mogale City, GAUTENG PROVINCE

4. This is an application for dispute resolution in terms of section 38 of the Community Schemes
Ombud Service Act 9 of 2011 (“the CSOS Act”’). The application was made in the prescribed
form and lodged with the Community Schemes Ombud Service (CSOS) by way of email.

5. The application seeking relief in terms of section 39 of the CSOS Act is in respect of Section
39(1) in respect of financial issues.

6. This matter is adjudicated in terms of the CSOS Act and Practice Directive on Dispute
Resolution, 2019 as amended and more specifically the amended Practice Directive dated
23 June 2020 which provides under paragraph 8.2: - “Adjudications will be conducted on the papers
filed by the parties and any further written submissions, documents and information as requested by the
appointed Adjudicator”. The parties were requested to make written submissions. The
adjudication was conducted on the 29 September 2023 and an order is now determined.

PRELIMINARY ISSUES

7. No preliminary issues were raised.

RELEVANT STATUTORY PROVISIONS

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Ref:CSOS1819/GP/23

8. Section 1 of the CSOS Act defines-


 "community scheme” as “any scheme or arrangement in terms of which there is shared use of and
responsibility for parts of land and buildings, including but not limited to a sectional titles development scheme,
a share block company, a home or property owner's association, however constituted, established to
administer a property development, a housing scheme for retired persons, and a housing cooperative and
"scheme" has the same meaning.”

 "dispute" as “a dispute in regard to the administration of a community scheme between persons who have
a material interest in that scheme, of which one of the parties is the association, occupier or owner, acting
individually or jointly”.

9. Section 38 of the CSOS Act provides-


“Any person may make an application if such person is a party to or affected materially by a dispute”.

10. Section 45(1) provides-


“The Ombud has a discretion to grant or deny permission to amend the application or to grant permission
subject to specified conditions at any time before the Ombud refers the application to an adjudicator.”

11. Section 47 provides-


“On acceptance of an application and after receipt of any submissions from affected persons or responses
from the applicant, if the Ombud considers that there is a reasonable prospect of a negotiated settlement of
the disputes set out in the application, the Ombud must refer the matter to conciliation.”

12. Section 48 (1) provides-


“If the conciliation contemplated in section 47 fails, the Ombud must refer the application together with any
submissions and responses thereto to an adjudicator.”

13. In terms of Section 50-


“The adjudicator must investigate an application to decide whether it would be appropriate to make an order.

14. Section 51 provides for the investigative powers of the Adjudicator:


“(1) When considering the application, the adjudicator may-
(a) require the applicant, managing agent or relevant person-
(i) to give to the adjudicator further information or documentation;
(ii) to give information in the form of an affidavit or statement; or
(iii) subject to reasonable notice being given of the time and place, to come to the office of the adjudicator for
an interview;

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Ref:CSOS1819/GP/23

(b) invite persons, whom the adjudicator considers able to assist in the resolution of issues raised in the
application, to make written submissions to the adjudicator within a specified time; and
(c) enter and inspect-
(i) an association asset, record or other document;
(ii) any private area; and
(iii) any common area, including a common area subject to an exclusive use arrangement.”

15. The dispute dispute was directly referred to adjudication in terms of clause 21.5.7 of the
CSOS Practice Directive on Dispute Resolution, thus there was no conciliation meeting
conducted. The Ombud referred the application together with any submissions and
responses thereto to an adjudicator.

SUMMARY OF RELEVANT EVIDENCE

Applicant’s Submissions

16. The Applicant made written submission that the owner of the property was not paying levies,
water or the late building penalty.

16. It appears from the documents provided that the Applicant sent monthly invoices and
statements to all its members/levy payers.

17. Further, reminder emails were sent to all owners with outstanding levies on a monthly basis.
They had signed the book of rules.

18. According to the Applicant, it also sent registered emails requesting payment from all
outstanding levy payers.

19. The Applicant submitted two copies of statement of accounts as proof of the Respondent’s
indebtedness to the Applicant, which reflected different amounts.

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Ref:CSOS1819/GP/23

20. It appears from one statement (NPC004) provided that as at 31 May 2023 the Respondent
was indebted to the Applicant for an amount of R42 590.98, and the other (LTE004) for an
amount of R8 840.00 as at 17 May 2023.

21. In an effort to resolve the matter, the Applicant reiterated that it sent reminders to all owners
with outstanding accounts.

22. However, if it did not receive a reply, a registered email would be sent to owners requesting
payment; and, to inform them that the account would be handed over for collection if no
payment was received.

23. Accordingly, the Applicant sought an order that the above mentioned amounts in arrear levy
were due and payable by the Respondent.

Relief sought by the Applicant

(a) That it is requesting full payment of the outstanding accounts, including interest and all
legal fees. If applicable, owner should also be informed that levies are payable on the 1 st
of every month and never later than the 7th of the current month.

Respondent’s Submissions

24. The Respondent failed to make submissions to the Adjudicator on or before the
29 September 2023.

25. The Respondent did not seek any extension in relation to making submission nor did (s)he
bring any condonation application.

26. In view of the above, the matter is unopposed.

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Ref:CSOS1819/GP/23

Relief sought by the Respondent

27. None submitted.

EVALUATION & FINDING

28. I have perused and taken into consideration all written submissions made by the Applicant
in arriving at the below decision.

29. In evaluating the evidence and information submitted, the probabilities of the case together
with the reliability and credibility of the witnesses must be considered.

30. The general rule is that only evidence, which is relevant, should be considered. Relevance
is determined with reference to the issues in dispute. The degree or extent of proof required
is a balance of probabilities. This means that once all the evidence has been tendered, it
must be weighed up and determined whether the Applicant’s version is probable. It involves
findings of facts based on an assessment of credibility and probabilities.

31. The merits of the matter are not opposed. The evidence of the Applicant is uncontested. I
am, therefore, inclined to accept it.

32. The Applicant attached two different statements. On close reading of the statement dated
31/05/2023, the Respondents were required to make payments relating to penalties for
upgrading perimeter fence amongst others. The Respondents are not challenging these
items.

33. The statement dated 17/05/23 includes inter alia payments for levies and water related
charges. Again, these items are not placed in dispute by the Respondents.

34. Clause 4.6 of the Applicant rules provides:

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Ref:CSOS1819/GP/23

34.1 4.6.1.1 A Letamo Member (LM) shall be responsible for payment of all electricity and water consumed
on his Residential Stand, and shall pay such deposits as may be applicable to the relevant authority. In
the event of rates and taxes or any other imposts being levied by any authority, the LM shall be
responsible for payment thereof.
34.2 4.6.1.2 LGF levies and special levies are payable in terms of paragraph 6 of the MOI.
34.3 4.6.1.3 Monthly levies are due on the first business day of each month and payable within 7 (seven)
business days thereafter. Each LM shall pay his monthly levies, free from any deductions, into the
designated account of LGF.
34.4 4.6.1.4 Interest/late payment penalties will be raised on the total of all overdue levies, water supply and
fines, at the ABSA Bank prime overdraft rate plus 2 (two) percent per annum.

35. In Sable Hills Waterfront Estate v Sable Hills Waterfront Estate Homeowners’ Association
(199/2016) 2016 ZASCA 170, it was held that “The liability of members of the Association to pay
levies arises under its articles of association “It follows that the Directors of the HOA, have to ensure strict
adherence to the Rules of the HOA, to ensure that the financial obligations of the HOA are met. Therefore, the
rules, obligates the members of the Association to make contributions for levies that have been imposed on
them by the Directors of the Association. The members are expected to yield to such imposition as they have
entered into the contract willfully.”

36. The evidence submitted by the Applicant is not challenged and I am inclined to accept it.

37. The above-cited provision specifically states that the Applicant has an obligation to collect
levy contributions from owners of the sectional title units.

38. Further, the Respondents have an obligation to pay levies as stated in clause 4.6 of the
Applicant’s rules.

39. The Applicant seeks an order for payment of an amount of R51 430.98,

40. I, therefore, find that the Respondent is indebted to the Applicant for the arrear levy amount.

41. However, it is in the interest of justice and fairness to grant the Respondent additional time
to settle arrear levies.

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Ref:CSOS1819/GP/23

42. Accordingly, the Respondent is indebted to the Applicant.

COSTS

43. There is no order as to costs.

ADJUDICATION ORDER

44. In the circumstance, it is ordered that:

(a) The Respondent is indebted to the Applicant for an amount of R51 430.98;

(b) The Respondent is ordered to pay R4 285.98 for a period of 12 months of receiving this
order;

(c) The Respondent shall simultaneously pay the current levies parallel to the payment of the
outstanding levies in terms of this order. First date of payment is 01 November 2023.

(d) Should the Respondent fail to make payments on due date of the levy account, then the
full amount shall become immediately due, owing and payable; and

(e) No order is made as to cost.

RIGHT OF APPEAL

45. Section 57 of the CSOS Act, provides for the right of appeal-

(1) An applicant, the association or any affected person who is dissatisfied by an adjudicator's order, may appeal
to the High Court, but only on a question of law.

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Ref:CSOS1819/GP/23

(2) An appeal against an order must be lodged within 30 days after the date of delivery of the order of the
adjudicator.

(3) A person, who appeals against an order, may also apply to the High Court to stay the operation of the order
appealed against to secure the effectiveness of the appeal.

SIGNED at CENTURION on this 13 October 2023

A N Tshabalala
_____________________________________
ANTHONY TSHABALALA
ADJUDICATOR

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