The most common issue in community scheme management is a member’s failure to pay a contribution. An association may also become liable to re-pay an owner a contribution wrongly collected.
There are also a range of other circumstances in which persons who have a material interest in a scheme may owe one another an amount of money.
The wording of this type of order is very wide, allowing the CSOS to order the payment of money due for any reason whatsoever.
In terms of section 39 (1) (e) of the CSOS Act, an application may be for:
“an order for the payment or re-payment of a contribution or any other amount”
Examples of issues
An owner may admit her or his liability to pay the association a contribution or any other amount, but just be unable to pay because she or he has no funds.
An owner may believe that the association has incorrectly required payment of a contribution that is not due in law and require that it be repaid to her or him.
Money debts may also arise for a range of other reasons. For example, the scheme executives may impose a financial penalty on an owner or occupier for some breach of the scheme governance documentation and need to recover it.
A member may pay a penalty imposed and then become aware that the scheme executives did not follow due process in imposing that penalty and require that it be re-paid.
In all of these cases the association or other person claiming the money needs to have the validity of the debt confirmed and have the CSOS order the debtor to pay it.
Example of order
An example of the type of order the CSOS could give is:
That Abraham Kenno must with in ten days of the date of this order pay to the Middelsburgh Hills Home Owners Association the sum of R 27 756,00 plus interest thereon at the rate of 20% per annum as from 20 March 2017 to date of payment. This order takes effect immediately.
Alternatively, you can download a blank copy of official CSOS Application for Dispute Resolution Form to complete offline at a later stage.
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