This question arose in the matter of Body Corporate of Balboa Park v Skeyi and another [2024] JOL 64125 (GJ) and related matters that was recently decided in the Johannesburg High Court.
The body corporates of “Balboa” and “Peppertree” sought orders in terms of which they could terminate the electricity supply and restrict water supply of owners who were in arears with payment of certain amounts due to the body corporates, until all arrears had been paid.
The body corporates argued that that the powers conferred on a body corporate in terms of the Sectional Titles Schemes Management Act and the rules, included the power to do all things reasonably necessary for the enforcement of the rules and the management of the common property. The argument was that the “powers to do all things reasonably necessary” included the power to terminate services as leverage to recover arrear levies and other payments.
The court held that a body corporate can only exercise powers conferred on it under the STSMA, the management rules and the conduct rules. None of those instruments expressly grant powers authorising a body corporate to seek or obtain the termination of municipal services. There is also no express authority authorising trustees at a meeting of trustees to resolve to do so. The applicants advanced no basis to infer that such implied power was reasonably necessary, particularly where adequate recourse existed in the form of legal proceedings against a recalcitrant member.
It is therefore clear that a body corporate must resort to legal action to recover levies and other amounts owed by members and cannot resort to termination of services which is considered to be unlawful self-help.
A competent estate management company can greatly benefit body corporates by giving guidance and imposing systems to ensure the financial viability of a community scheme.