A recent court judgment has significant implications for the management of sectional title schemes in South Africa. Attorney Natascha Miller explains the legal shift in detail.
“The rights and responsibilities of body corporates concerning the disconnection of utilities have changed with a recent court ruling,” says Miller. “The case involving Body Corporate The Straight centred on a dispute over the disconnection of water and electricity to a unit owned by Jansen Madike Katisi, who had failed to meet his financial obligations to the body corporate. The decision to disconnect utilities raised critical questions about the extent of the body corporate’s powers and the legal implications of such action.
“The legal framework surrounding utility disconnection due to non-payment is nuanced. While body corporates have the right to recover outstanding levies, the issue of cutting off utilities has often been contentious. Although the Act does not explicitly grant this right, body corporates have broad powers to enforce payment under collective governance.”
The role of the body corporate — rights and responsibilities
According to Miller, the body corporate has several rights when it comes to managing the affairs of a sectional title scheme. These include:
Recovering outstanding levies: Taking legal or procedural steps to enforce levy payments.
Enforcing community rules: Creating and applying rules that support harmonious living and the collective benefit of all residents.
Managing common property: Making decisions on the maintenance and operation of shared amenities in the community’s best interest.
“However,” warns Miller, “body corporates must also act ethically and responsibly. Any action taken must be reasonable and justifiable.”
The judgment
“The court ruled in favour of the body corporate, affirming its right to disconnect essential services to defaulting owners,” says Miller. “The court clarified that utilities are not just conveniences but essential services tied to financial commitments agreed upon when joining a sectional title scheme. The ruling confirms that disconnection is a reasonable enforcement mechanism when non-payment threatens the financial health of the community.”
What this means for body corporates
Enhanced authority: The ruling reinforces that arrears must be acted upon, not merely noted. Body corporates now have clearer legal backing to disconnect services if necessary.
Structured process: Body corporates are encouraged to develop transparent written policies outlining the process for disconnections, helping avoid arbitrary decisions and ensuring compliance with the law.
Increased accountability: Sectional title owners are now under greater pressure to meet their financial responsibilities or face real consequences, including loss of essential services.
Legal precedent: This ruling sets a precedent that could influence future court cases and encourage stricter enforcement of financial obligations across similar schemes nationwide.
The impact on scheme communities
“The judgment is a stern reminder of the collective responsibility inherent in shared living environments,” says Miller. “It may also shift buyer sentiment. Potential investors might reconsider entering a scheme where unresolved tension or financial mismanagement is present.”
Challenges to consider
While the ruling provides clarity, it also introduces new challenges.
“The power to disconnect utilities must be used cautiously,” Miller says. “There’s an ethical duty to explore all other avenues — such as communication and negotiation — before cutting off services. Misuse or overreach could harm community trust and escalate conflict.”
There’s also the potential socio-economic impact on vulnerable or low-income owners who may struggle to pay their levies. In these cases, body corporates may need to consider offering payment plans or community-based support mechanisms to avoid disconnection becoming a default first step.
A call for fairness
Miller advises that body corporates approach their duties with fairness, transparency, and a focus on building community.
“The legal landscape is structured to protect owners while also empowering body corporates to maintain financial stability,” she says. “Clear communication, proper processes, and empathy are key in managing this delicate balance.
“As sectional title ownership becomes more complex, this ruling sends a powerful message: body corporates have both the authority and the responsibility to protect the collective interests of their communities — and the legal right to act when owners default.”
The bottom line? This ruling is a wake-up call for both owners and body corporates. Clear communication, consistent payment habits, and ethical enforcement are no longer optional—they’re essential for maintaining harmony, financial health, and trust in shared living environments. As the legal and housing landscape evolves, so too must the way we manage our communities.
