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The Community Schemes Ombud Service (CSOS) is the Ombud for all community schemes in South Africa. The Ombud provides a dispute resolution service, regulates, and monitors the quality of all community scheme governance documentation, provides training to role players and creates consumer awareness. Harmony and effective dispute resolution are paramount in shared communities as the intricacies of community living can sometimes lead to disagreements and conflict.

In this introductory article, we aim to create awareness of the role of CSOS, and the support and outcomes provided for occupants and owners of community schemes.

Do I live in a Community Scheme?

A Community Scheme is any scheme or arrangement where there is shared use of and responsibility for parts of land and buildings. If you live in a housing scheme with a Homeowners’ Association or a Property Owners’ Association, and share facilities (common property), and you have a Constitution, Memorandum of Incorporation or Management Rules as governing documents, you likely live in a Community Scheme.

Sectional Title Schemes, Lifestyles Estate and Retirement Villages are common examples of community schemes.

The size of the scheme does not determine whether it is categorized as a community scheme as even sectional title schemes consisting of only two units fall within this description and require compliance with CSOS legislation.

The services provided by CSOS to residents of community schemes are available for both property owners and tenants, as well as the association.

Community Schemes are also not limited to residential properties and can also refer to commercial property, for example an office block.

Understanding CSOS

CSOS, an acronym for the Community Schemes Ombud Service, is an independent statutory body established under the Community Schemes Ombud Service Act 9 of 2011 (“CSOSA”). Its primary mandate is to develop and provide a dispute resolution service and to regulate and monitor scheme governance. It is mandatory for all community schemes to register with CSOS, to pay levies calculated as prescribed and to file the prescribed documentation with CSOS, as is applicable to the particular community scheme.

All community schemes must be registered with CSOS within 30 days after the incorporation of the community scheme. Failing to do so is a contravention of the CSOS Act with legal consequences. Equally, it is an offence punishable by law to collect the CSOS levy from your scheme members and not pay it over to the CSOS.

The Role of CSOS

Dispute Resolution: At the core of CSOS’s functions lies its role as a dispute resolution mechanism in instances where the internal dispute resolution process of the community scheme was unsuccessful. If conflicts arise within community schemes — be it regarding maintenance issues, financial disputes, or behavioral conflicts — CSOS serves as a neutral mediator, facilitating dialogue and striving for amicable resolutions.

Education and Awareness: CSOS is obliged to create awareness and understanding among stakeholders regarding their rights and obligations within community schemes. Through educational initiatives, workshops, and informative material, CSOS is mandated to empower homeowners, tenants, and scheme executives with the knowledge necessary to navigate the complexities of communal living.

Compliance and Enforcement: Upholding the rule of law within community schemes is paramount to ensuring fairness and accountability. CSOS oversees compliance with relevant legislation, including the Sectional Titles Schemes Management Act 8 of 2011 (STSMA) and the Community Schemes Ombud Service Act 9 of 2011 (CSOSA). By enforcing compliance measures, CSOS safeguards the interests of all parties involved in community schemes – be it as association, occupier, or owner.

Jurisdiction of CSOS

If you as occupant or owner is aggrieved and an attempt to resolve any dispute by using the internal dispute resolution mechanisms of the community scheme has been unsuccessful, you may lodge an application with CSOS.  In terms of section 40(c) of CSOSA, CSOS may require an applicant to provide evidence that an internal dispute resolution mechanism has been unsuccessful before hearing a dispute.

CSOS may adjudicate disputes regarding the administration of a community scheme between persons who have a material interest in that scheme, of which one of the parties is the association, the occupier, or the owner, acting individually or jointly.

It is advisable to refrain from lodging a dispute falling within the jurisdiction of CSOS in the High Court directly – although exceptions may exist. In Body Corporate of the Sorronto Sectional Title Scheme, Parow v Koordom and Another 2022 (6) SA 499 (WCC) the respondents, having initially approached the High Court directly, were met with an adverse cost order for failing to make use of the more expedient and less costly CSOS forum.

A Case Study

Consider a scenario where a dispute arises between homeowners in a sectional title scheme regarding the allocation of parking spaces. Despite attempts at resolving the issue internally, the parties remain at an impasse, leading to escalating tension within the community.

In this scenario, the affected parties can turn to CSOS for assistance. By filing a formal complaint and providing relevant documentation, the disputing parties initiate CSOS’s intervention process. CSOS, acting as an impartial mediator, convenes meetings, facilitates discussions, and explores potential solutions to the parking dispute. Through its conciliation efforts, CSOS can help the homeowners reach a consensus on parking space allocation. If conciliation fails, the matter will be referred to adjudication and an impartial adjudicator will make an order that is binding on the parties. Should the application not qualify for a waiver of the adjudication fees, costs may be charged. A CSOS order can only be appealed in the High Court and only on a question of law.

Conclusion: CSOS – The importance of compliance

In conclusion, it is important to ensure that the community scheme you belong to adheres to CSOSA and is registered with CSOS. This is not only a legal requirement, but can prove valuable as a support structure for occupants and owners alike.

The above article outlines the role of CSOS in community schemes in South Africa. If you require more information or assistance, please contact Marize Nunns on MarizeN@raubenheimers.co.za or via the relevant contact details below.