Understanding CSOS and Community Scheme Regulations in South Africa

The Community Schemes Ombud Service (“CSOS”) was established under the Community Schemes Ombud Service Act 9 of 2011 to oversee community schemes in South Africa. It aims to ensure harmonious living within these schemes through regulation, education, and dispute resolution services.

Mandatory Registration and Definition

What is CSOS?

CSOS regulates the conduct within community schemes, providing a framework for resolving disputes and promoting orderly management.

Community Scheme Definition

A community scheme is any arrangement involving shared use and responsibility of land and buildings. This includes:

• Sectional titles development schemes

• Share block companies

• Home or property owners associations

• Housing schemes for retired persons

• Housing cooperatives

Registration Requirements

All community schemes must register with CSOS within 30 days of either the CSOS Regulations' commencement (07 October 2016) or their incorporation date. Registration is completed using Form CS 1, without any associated fee.

Obligations of Registered Community Schemes

1. Levy Payments: Community schemes must pay CSOS levies quarterly or arrange annual advance payments. Provisions exist for waiver applications based on financial incapacity.

2. Annual Returns: Filing annual returns within four months after the end of the financial year using Form CS 2 is mandatory.

CSOS Dispute Resolution Services

Alternative Dispute Resolution (ADR)

CSOS offers an ADR service for resolving community scheme disputes outside of court. This includes:

• Conciliation: Facilitated by a CSOS conciliator to help parties reach a resolution.

• Adjudication: Involves investigation and a hearing, leading to a binding determination.

Adjudicator Orders

These orders are enforceable in either the Magistrate Court or High Court, depending on the relief's quantum or nature.

Dispute Referral Process

• Disputes must be referred to CSOS using the prescribed form and fee.

• Following assessment, disputes proceed to conciliation or arbitration.

• Unresolved matters after conciliation are referred to adjudication.

Legal Representation and Appeals

• Generally, parties do not have a right to legal representation, but adjudicators may allow it at their discretion.

• Decisions by CSOS can be appealed in the High Court on legal grounds within 30 days of the order.

Legal Assistance with CSOS

Navigating CSOS and community scheme regulations can be complex. Our law firm offers extensive experience in dealing with CSOS matters. We provide legal guidance and support for effective management and dispute resolution in community schemes.

Conclusion

CSOS plays a critical role in regulating South African community schemes, offering valuable services for maintaining harmony and resolving disputes. Understanding and complying with CSOS requirements is essential for the smooth operation of these schemes. For assistance with CSOS-related matters, or any questions about community schemes, please contact our law firm. Our experts are ready to help you with all your CSOS needs.