How to Dispute a Body Corporate Levy in South Africa

Levies are the lifeblood of every sectional title scheme — but trustees don't have unlimited power to raise them. If you think your body corporate has charged a levy unlawfully, raised it without proper approval, or is misallocating costs, you have real recourse under the Sectional Titles Schemes Management Act 8 of 2011 (STSMA) and through the Community Schemes Ombud Service (CSOS).

When a levy can be disputed

Common valid grounds:

• The levy was not approved at the AGM by the required resolution.
• A special levy was raised without the procedure in section 3(3) of the STSMA being followed.
• The levy increase exceeds what was budgeted, without a separate resolution.
• The participation quotas used to calculate your share are wrong.
• The body corporate is charging you for something that should fall under the administrative or reserve fund, but isn't.
• Penalty interest or collection costs are being added without authority in the rules.

You generally cannot refuse to pay simply because you disagree with how trustees are running the scheme — but you can dispute the amount itself through the proper channels.

Step 1: Get the paperwork

Request, in writing:

1. The last AGM minutes showing the approved budget and the resolution raising the levy.
2. The annual financial statements for the last two years.
3. The schedule of participation quotas for the scheme.
4. The conduct and management rules registered with CSOS.

Under the STSMA the body corporate must provide these. Refusal is itself a CSOS dispute.

Step 2: Write to the trustees

Send a formal letter (or email) to the chairperson and managing agent:

• Identify the specific levy or charge you dispute.
• State the legal basis (e.g. "no resolution under PMR 21 was passed at the AGM held on …").
• Ask for it to be reversed within 14 days.
• Make it clear you'll refer the matter to CSOS if not resolved.

Keep paying the undisputed portion of your levy in the meantime. Don't give the body corporate grounds to take legal action against you while you're trying to resolve a separate issue.

Step 3: Refer the dispute to CSOS

If the trustees don't fix it, file a CSOS application:

• Use the CSOS DR (Dispute Resolution) form, available at csos.org.za.
• Filing fee is R50 (waived if you're indigent).
• Select the right prayer — for levies, it's usually under section 39(1): "an order declaring that a contribution levied on owners is incorrectly determined or unreasonable".
• Attach: AGM minutes, the levy statement you dispute, your letter to the trustees, and their response (or proof you sent it).

CSOS conciliates first; if that fails, an adjudicator gives a binding order that has the same force as a Magistrates' Court order.

What trustees can't do

• They can't disconnect your water or electricity for unpaid levies.
• They can't refuse you access to common property (including parking).
• They can't impose fines unless the conduct rules specifically allow it and the procedure (notice + opportunity to respond) was followed.
• They can't change levies mid-year without a special resolution.

When to escalate beyond CSOS

If CSOS isn't the right forum (e.g. the matter is about a constitutional right, or the amount exceeds CSOS's monetary jurisdiction), you can approach the High Court — but this is expensive. CSOS resolves the vast majority of levy disputes.

Want Gatvol to draft your CSOS application or your letter to the trustees, with proper STSMA citations? Start free on Gatvol →