How to access reliable ( and affordable ) advice to structure a residential scheme?

Estate Living sat down with Johlene Wasserman, who until March 2023 was employed at the CSOS for almost eight years in a senior management position.

 

In those eight years, she was responsible for drafting practice directives, providing training, education, and awareness to stakeholders nationwide, as well as overseeing the entire Governance Business Unit. Due to her role in the formation of the organisation, she has been a resource to many community managers, property management companies, and homeowners over the years.

Since leaving CSOS, Johlene has conducted several months of research within the industry and it is clearly evident that the majority of schemes urgently require affordable and reliable advice on the governance and legal structure of a scheme, as well as the drafting of correct scheme governance documentation. Her findings confirmed that communities often received incomplete or incorrect advice, or have been provided with a set of poorly drafted rules and a hefty account at the end of the day for equally poor services provided.

With this in mind, Johlene launched Wasserman Consultancy, which aims to provide the services that a scheme specifically requires – providing targeted and correct legal and legislative advice, drafting rules that will be approved by the CSOS the first time around, and chairing meetings that will ensure that no AGM or SGM will result in the meeting being voided or declared invalid, or rescheduled due to the correct legal process not being followed.

With Johlene’s experience, she has the knowledge, skill and understanding of all governance structures and legal requirements that must be implemented in all the different types of schemes. The services that she offers cannot be delivered by the CSOS – the CSOS’s powers are limited in terms of the CSOS legislation, providing advice being one such specific limitation.

Drafting of rules – this will include, but not be limited to, drafting of managing and conduct rules, MOI, constitutions, and any other scheme governance documents that will be required by the scheme.

‘I can advise the scheme, even before the rules are drafted, about what the CSOS sees as undesirable rules, ensure that rules are not returned with a query or amendments when lodged with the CSOS, and ultimately ensure that the Section 10 compliance certificate is issued within the prescribed period,’ adds Johlene

Training – almost all the managing agents asked for training, education or awareness for the members of the schemes and/or the scheme executives.

General advice – ‘I receive hundreds of emails per day from stakeholders, attorneys, members, trustees, etc., for advice, a service the CSOS cannot and does not provide,’ says Johlene. ‘A full mandate should be obtained from the clients and consultation should be held between the client and myself,’ she adds.

Taking Johlene up on her offer of ‘general advice’, we asked her to share a few useful tips on how to work with the CSOS and to ensure that they provide you with the most efficient and timeous service.

 

‘The Community Schemes Ombud Service (CSOS) is governed by the Community Schemes Ombud Service Act (CSOS Act), and the mandate of the CSOS is to regulate the conduct of parties in community schemes and to ensure their good governance. But this mandate is meaningless if there is no buy-in from the public and if the processes are not followed by community schemes as set out by the CSOS,’ says Johlene.

• ‘First and foremost, peruse the CSOS website (www.csos.org.za) – there is a plethora of information ranging from past adjudication orders to articles, and YouTube videos explaining the various types of legislation, and practice directives. This is especially important as these are the operational guidelines of the CSOS – on how to lodge a dispute, how to submit your scheme governance documentation, and which supporting documents you require, etc. Each of these is listed under its own category on the website.

• ‘The second very important aspect is to get to know the relevant management team in a particular department, as you can then escalate to a manager or an executive or an ombud should you not receive a response within the given timeframe after you have lodged your application with the generic email. These details can be obtained from the CSOS – just give them a call.

‘Thirdly, it is of the utmost importance that you understand Section 39 of the CSOS Act, as this lists the issues on which you can lodge a dispute, and only on these issues. CSOS is a creature of statute and cannot act outside of the CSOS Act and Regulations, including the Sectional Title Schemes Management Act (STSMA): Regulations. Please peruse Section 39 carefully and align your dispute application accordingly and, most importantly, align the relief that you are seeking, which must fall within the ambit of Section 39. (This section is very easy to read, and you do not have to be a lawyer to understand it!)

• ‘Lastly, the CSOS is a frontrunner in the field of providing training, education and awareness, and they are always on the road bringing the law to the people – I encourage community schemes to attend these seminars and roadshows in your respective provinces as you will get to know the colleagues in the various departments and put a face to a name. Just give them a call and they will let you know when they will be in your province or town.

‘If you follow these guidelines, you’ll understand that the aim of the CSOS is to have an empowered stakeholder in every community scheme across South Africa. The CSOS website includes a fair amount of information and documentation required for HOAs and BCs, including their service charter, which sets out timelines – for example, the dispute resolution process from start to finish is allocated 90 days. Should you wish to submit your rules for quality assurance, the process from start to finish is 30 days.

• • ‘I am alive to the fact that schemes do not necessarily want to lodge a dispute at the CSOS. However, should they have received the incorrect legal advice or guidance, or have a set of scheme governance documentation that is riddled with errors and omissions, then their reluctance is well founded. Disputes can be limited if members of a scheme understand their roles and responsibilities, as well as their rights and obligations, and, in addition, their scheme governance documentation, is fully compliant, which will ensure a well-run and compliant scheme.’