The Community Schemes Ombud Service (CSOS) is a statutory body established in South Africa under the Community Schemes Ombud Service Act, No. 9 of 2011. Its main purpose is to regulate and support community schemes and provide a dispute resolution mechanism for issues arising within them.
What is a Community Scheme?
A community scheme includes any residential or commercial property development where owners share common property and responsibilities. Examples include:
- Sectional title schemes (like apartment complexes)
- Homeowners’ associations (HOAs)
- Retirement villages
- Share block companies
Purpose of CSOS:
The CSOS exists to promote good governance and provide a fair and affordable dispute resolution service for people living in or managing these schemes.
Here’s a breakdown of its key roles:
1. Dispute Resolution:
- Offers a structured, low-cost alternative to court for resolving conflicts between owners, tenants, trustees, and managing agents.
- Disputes can involve issues like maintenance, levy payments, access to records, or governance irregularities.
2. Regulation and Monitoring:
- Ensures that community schemes are managed properly and transparently.
- All schemes must register with CSOS and file their governing documents (like constitutions or rules).
3. Approval of Governance Documents:
- Reviews and approves rules and amendments made by schemes to ensure they comply with the law and do not unfairly discriminate or infringe on rights.
4. Education and Awareness:
- Educates scheme participants (owners, trustees, managing agents) about their rights and responsibilities.
5. Levy Collection:
- Collects levies from schemes (0.2% of the monthly levy over R500) to fund its operations.
Why It Matters:
Before CSOS, resolving disputes in community schemes often meant going to court, which was expensive and time-consuming. CSOS now provides a more accessible and efficient way to handle issues and ensures better accountability and transparency in the management of these communities.