- A homeowner’s complaint about being charged levies for past months was dismissed as unfounded.
- CSOS and court decisions highlight that the responsibility to pay levies starts on the day your property is registered.
- Knowing your responsibilities and staying in touch with your association early on can help you avoid disputes and financial stress.
When you own property in a community scheme, you have both rights and financial duties. In a 2024 ruling in the case of Paulina Ninkie Skhosana v The Executive Committee of Melkbosch Village Homeowners Association, the Community Schemes Ombud Service (CSOS) made it clear that levies are owed from the date of registration, not from when you get your first statement.
Skhosana’s unit was registered on 5 July 2022. She argued that she should not be liable for levies until January 2023, when she first received statements. The CSOS adjudicator, Advocate AS du Toit, rejected her claim.
In his decision, he stated that “the charging of levies from the date of registration to January 2023 cannot be regarded as unreasonable in the circumstances.” He also noted that the application was “without substance and accordingly dismissed in terms of section 53(1)(a) of the CSOS Act.” Additionally, he mentioned that “members’ liability to pay levies arises from the contractual agreement, and notification of levies does not negate this obligation.”
The adjudicator highlighted the practical consequences of not paying, stating: “It is well known that the non-payment of a levy can seriously destabilise a scheme. Levies are the lifeblood of shared living schemes. The failure to pay could negatively affect the collective interests and investment of all owners in the scheme.”
This clearly shows that levy responsibility is automatic upon registration. Delayed notification or administrative errors do not excuse non-payment.
Supporting case law in South Africa
South African courts consistently support the rule that levy obligations attach automatically to ownership. In Cowin NO v Kyalami Estate Homeowners Association (2014 ZASCA 221), the Supreme Court of Appeal explained that “the obligation to pay levies flows from membership arising by way of ownership, and is binding on successors in title.”
The court further noted that “members cannot escape liability due to a lack of knowledge of levies or statements, as the rights and obligations are embedded in the contractual relationship with the association.”
In Chapmans Bay Estate HOA v Lotter (2024 ZASCA 153), the court affirmed that “liability to pay regular levies is contractual in nature, arising directly from membership and not from receipt of statements.” The judgment added that “failure to issue invoices does not amount to an unlawful action, and the obligation remains enforceable from the date of acquisition of ownership.”
The North West High Court in Peacanwood Estate HOA v Ntsanwisi [2025] ZANWHC 161 emphasised: “Upon transfer, the owner became a member and liable for the levies imposed by the HOA.” The court further explained that “membership confers both rights and obligations, and the levies are essential to maintaining the collective interests of the community.”
In Gauteng, Mtshali v Harbour Town HOA [2025] ZAGPJHC 84 reinforced this principle, stating: “Title deed and HOA constitution create immediate obligations for new owners, even if they are unaware of amounts due.” The court added, “Owners are expected to familiarise themselves with the constitution and financial rules of the association, as these form part of the contractual framework governing the property.”
Together, these rulings demonstrate that delayed communication or administrative errors do not absolve a homeowner of liability. Adherence to levy obligations is legally enforceable.
Why engagement and record-keeping are essential
Levies fund the maintenance, security, insurance, and shared infrastructure that enable community living. As Du Toit noted, “members’ liability to pay levies arises from the contractual agreement, and notification of levies does not negate this obligation.”
Homeowners should engage with their HOA right after registration, request levy schedules, and keep written records of all correspondence. This approach ensures that any potential disputes can be resolved quickly and that financial obligations do not accumulate unnoticed.
Lessons for homeowners
The Skhosana ruling, along with supporting case law, emphasises three key points for all homeowners. First, levy obligations begin on the date of registration. Second, delayed statements or lack of notification does not remove the obligation to pay. Third, proactive engagement and record-keeping are essential to avoid disputes. Du Toit made this clear: “The governance of community schemes is not a license for control but a framework for cooperation and respect.”
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