Blacklisting owners for levy arrears in sectional title schemes

Follow-up article on blacklisting in bodies corporate

5 July 2025 | Nicole Nel

Blacklisting is not so simple

Following our article in February of 2023, we have come to learn that the process of blacklisting an owner who is in arrears with their monthly levy contributions to the body corporate is not as straight-forward as we had previously believed, and there a few requirements that must first be met prior to a body corporate being able to blacklist an owner.

Before we jump into it, let’s just refresh on what the concept of blacklisting is.

What is blacklisting?

In South African terms, blacklisting is every time a consumer refused an interest-bearing loan or credit, due to having a negative reputation with creditors who use credit bureau services, like TPN Credit Bureau or TransUnion.

In terms of the National Credit Act 34 of 2005, this is known as default blacklisting.

However, it must be noted that there is no central repository of “All people who have been blacklisted in South Africa for 2025”, for example, but what the above practically means is that when credit providers, such as banks and finance companies, base their decisions on whether to lend you money or not, they rely on the information provided from credit bureaus, i.e. your credit history, and this would then impact their decision.

In this regard, when a person is “blacklisted”, it significantly lowers this person’s credit score, and could result in this person being exposed to far higher interest rates when borrowing money, or much higher monthly payback instalments on monies borrowed, or even not being able to obtain further loans or credit at all.

However, and this is the critical point to note in this blog post, no owner in a body corporate can be listed as a defaulting creditor unless a judgment, from the Community Schemes Ombud Service (“the CSOS”) or another competent Court, confirming that the owner is a defaulting member owing money to the body corporate, is received.

How practical is blacklisting?

As informed by our colleagues who have practical experience in managing applications for blacklisting, the actual blacklisting of a defaulting owner, once the relevant judgment has been received, is not an action that is often practiced in reality.

The above is due to the fact that once the aforementioned judgment as been handed down, there are far more practical ways of enforcing same that would bring actual benefit to the body corporate.

For example, if a CSOS Adjudication Order is received, and should the defaulting owner continue to remain in arrears and act contrary to Adjudication Order received, this can be enforced through the relevant High Court and served on the owner by the local Sheriff of the Court, and, if after this, the owner continues to remain in arrears, they could face further High Court action through a contempt of court application.

Similarly, if a Court Order confirming that the owner is a defaulting member is received, and should the defaulting owner continue to remain in arrears and act contrary to Court Order received, the body corporate will have the opportunity to apply for the further appropriate action in the relevant Court, e.g. applying for an order to attach movable property in order to reduce the arrears.

Conclusion | Blacklisting is a comprehensive process

We hope that this follow-up article explains that the potential blacklisting an owner who is in arrears with their monthly levy contributions is not as straight-forward as envisioned, and sheds light onto the nuances around the comprehensive process that first needs to be followed before an owner that has fallen into arrears in a body corporate could be blacklisted.

Need more information?

Please contact our offices if you would like any further information with regard to the above, on 061 536 3138 or at info@tvdmconsultants.com.

About the Author:

Nicole Nel is a Community Schemes Consultant at TVDM Consultants.

Nicole joined our team at the start of 2021 after finishing up her LLB at Stellenbosch University, where in the final year of her degree, Nicole worked as a research intern for the South African Research Chair in Property Law (“SARCPL”), where her research contributed towards various Property Law Juta publications. After graduating, she went on to complete an Advanced Diploma in Corporate and Securities Law through UNISA with distinction. Nicole recently completed the SA Legal Academy mediation course, and is an Accredited Mediator. Nicole is also a member of Golden Key, international honours society as a top academic achiever in her respective fields of study.

Click here to learn more about her.