South Africa Case Law

Osho Property Ventures (Pty) Limited v Body Corporate Construction Park and Others (46109/2021)

Osho Property Ventures (Pty) Limited v Body Corporate Construction Park and Others (46109/2021) [2025] ZAGPPHC 281 (13 March 2025)

Court

North Gauteng High Court, Pretoria

Case number

46109/2021

Judge

E M Kubushi

The court held that the applicant, as a prospective purchaser, cannot rely on the defence of prescription to limit liability for arrear levies owed to the body corporate. The statutory embargo in section 15B(3) of the Sectional Titles Act entitles the body corporate to refuse to issue a levy clearance certificate until all amounts due are paid, regardless of any contractual arrangements between the applicant and the liquidators. The body corporate is not bound by the sale agreement, as it was not a party to it, and its statutory right to withhold the certificate remains unaltered. The applica…

Source excerpt

• Sectional Titles Act
• Levy Clearance Certificate
• Prescription Of Debt
• Statutory Embargo
• Specific Performance

Metro Body Corporate v Diem and Others (7927/2022)

Metro Body Corporate v Diem and Others (7927/2022) [2024] ZAWCHC 372 (18 November 2024)

Court

Western Cape High Court, Cape Town

Case number

7927/2022

Judge

A Bhoopchand

The High Court dismissed a body corporate application to set aside a sectional title transfer, found the litigation unauthorised, and ordered costs against the non-party initiator.

• Sectional Titles Management Act
• Authority To Litigate
• Costs Award Against Non Party
• Levy Clearance Certificate
• Unclean Hands Doctrine
• Sectional-titles

L.A and Another v Body Corporate of London Place and Others (11463/2023)

L.A and Another v Body Corporate of London Place and Others (11463/2023) [2024] ZAWCHC 92; 2025 (1) SA 147 (WCC) (27 March 2024)

Court

Western Cape High Court, Cape Town

Case number

11463/2023

Judge

J Cloete

The court held that ordinary members of a body corporate are not members of its governing body for purposes of section 13(1)(e) of the Prescription Act. Only trustees constitute the governing body, as they are entrusted with the powers and functions of the body corporate under the Sectional Titles Schemes Management Act. Since neither applicant was ever a trustee, the statutory impediment delaying prescription does not apply. The body corporate's claim for historic arrear levies against the applicants has therefore prescribed, and the body corporate is precluded from relying on the prescribed…

Source excerpt

• Prescription Act
• Sectional Title Schemes Management Act
• Levy Clearance Certificate
• Subrogation
• Arrear Levies
• Condonation

Tapuch v Trustees For The Time Being of S H Body Corporate 3 and Others (29978/2022)

Tapuch v Trustees For The Time Being of S H Body Corporate 3 and Others (29978/2022) [2022] ZAGPPHC 811 (24 October 2022)

Court

North Gauteng High Court, Pretoria

Case number

29978/2022

Judge

E van der Schyff

The court held that the statutory purpose of a levy clearance certificate under section 15B(3)(a)(i)(aa) of the Sectional Titles Act is to ensure that all monies due to the body corporate are paid before transfer of a unit. The body corporate cannot withhold the certificate to enforce compliance with scheme rules or laws unrelated to payment. The respondent's conduct in using the certificate as leverage to avoid costs liability and compel compliance with building plan requirements was improper and contrary to the statutory scheme. The applicant was entitled to the extended clearance certifica…

Source excerpt

• Sectional Titles Act
• Levy Clearance Certificate
• Body Corporate Powers
• Urgent Application
• Statutory Interpretation

Body Corporate of Candice Glades vs Derrocks Attorneys and Another (47219/2021)

Body Corporate of Candice Glades vs Derrocks Attorneys and Another (47219/2021) [2022] ZAGPJHC 383 (6 June 2022)

Court

South Gauteng High Court, Johannesburg

Case number

47219/2021

Judge

Siwendu

The court found that the respondents, through unequivocal correspondence, provided an irrevocable undertaking to pay the outstanding levies upon registration of the property. The undertaking was unqualified and created a binding contractual obligation. The respondents' defences of misrepresentation and prescription were unsupported by evidence, and no genuine dispute of fact was raised. The applicant provided sufficient breakdown of the levy account prior to the undertaking, and the respondents failed to request further details before effecting transfer. Section 34(7)(c)(i) of the Legal Pract…

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• Sectional Titles Management Act
• Legal Practice Act Liability
• Irrevocable Undertaking
• Levy Clearance Certificate

Sebola and Another v Steen-Stenersen and Others (2017/22588; 2016/43175)

Sebola and Another v Steen-Stenersen and Others (2017/22588; 2016/43175) [2020] ZAGPJHC 34 (18 February 2020)

Court

South Gauteng High Court, Johannesburg

Case number

2017/22588; 2016/43175

Judge

C G Lamont

The High Court dismissed a rescission bid over a sale in execution, finding no fraud in the transfer and confirming that levy arrangements allowed transfer.

• Rescission Of Judgment
• Sale In Execution
• Fraud In Transfer
• Sectional Titles Act
• Levy Clearance Certificate
• Rescission-of-judgment

Bradley Scott Real Estate CC v Serengeti Exclusive Estate Home Owners Association NPC and Others (13150/2016)

Bradley Scott Real Estate CC v Serengeti Exclusive Estate Home Owners Association NPC and Others (13150/2016) [2017] ZAGPJHC 11 (9 February 2017)

Court

South Gauteng High Court, Johannesburg

Case number

13150/2016

Judge

F Diedericks

The court found that the embargo provision in clause C(3) of the title deed creates a real right in favour of the Home Owners Association, not merely a personal claim. This real right allows the HOA to veto the transfer of the property until all amounts due are paid, regardless of the prescription period for debts under section 11(d) of the Prescription Act. The Applicant's calculation, which sought to limit the HOA's claim to amounts not prescribed, was incorrect. The HOA's right to claim all outstanding levies and penalties is protected by the real right created by the embargo provision, an…

Source excerpt

• Levy Clearance Certificate
• Embargo Provision
• Prescription Act Section 11d
• Real Right Vs Personal Right
• Liquidation Transfer
• Home Owners Association

Integer Mortgage SPV (Pty) Limited v Body Corporate of Le Domaine and Others (333/2014;6634/2014)

Integer Mortgage SPV (Pty) Limited v Body Corporate of Le Domaine and Others (333/2014;6634/2014) [2016] ZAKZDHC 51 (10 November 2016)

Court

Kwazulu-Natal High Court, Durban

Case number

333/2014;6634/2014

Judge

Olsen

The court dismissed Integer Mortgage’s applications and ordered payment of the trust-held levy stabilisation fund contribution to the body corporate.

• Sectional Titles Act
• Levy Clearance Certificate
• Misrepresentation
• Rescission Of Contract
• Trust Account Dispute
• Sectional-titles-act