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Estate Living was delighted to meet with the Acting Chief Ombud of the Community Schemes Ombud Service (CSOS), Thembelihle Mbatha, to spend some time discussing the key issues that CSOS is focusing on right now.
Introduction to CSOS
CSOS is a relatively new organisation, having opened its doors in 2016. Despite its short existence, CSOS has already made a significant impact in the residential community sector. With offices across the country, CSOS provides conflict resolution services for community schemes, ensuring that disputes are managed efficiently and fairly.
The role of CSOS
CSOS’s primary mandate is dispute resolution, but it also serves as an ombud, adjudicating on various matters and issuing adjudication orders. These orders, which have been upheld by the courts, help prevent the judiciary from being overwhelmed with cases that CSOS can resolve. Moreover, CSOS focuses on mediation and conciliation, encouraging parties to talk and agree before escalating to formal adjudication.
Another critical aspect of CSOS’s work is consumer and homeowner awareness. CSOS conducts extensive training across the country for homeowners, trustees, body corporate, and residents of sectional title living arrangements, including retirement villages. This training helps individuals understand their rights and obligations in their communities.
Governance and regulatory compliance
CSOS also plays a crucial role in governance, ensuring that community scheme rules comply with all relevant legislation, including the Sectional Titles Schemes Management Act. This compliance helps protect constitutional and human rights, ensuring that homeowners are aware of what they are committing to before purchasing a property.
For homeowners, understanding their financial obligations, including the payment of levies, is essential. CSOS assists in clarifying these responsibilities, ensuring that everyone knows their role in the body corporate or homeowners association (HOA).
Bridging legislative gaps
One of the challenges CSOS faces is the conflict between the Sectional Titles Schemes Management Act and the Companies Act, which governs HOAs. CSOS is actively working to bridge these gaps, developing memorandums of understanding (MOUs) with relevant authorities to ensure comprehensive coverage and compliance.
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Since 2016, new developments require a Section 10 certificate from CSOS, confirming that their rules are compliant and allowing them to operate. However, older schemes may still have undesirable rules, and CSOS is working on legislative projects to address these issues.
Managing levy payments
Levy payments have been a point of contention for many homeowners. CSOS introduced a billing and statement system about two years ago, which is still being refined. Homeowners should be aware that they will not be charged more than R40 for CSOS levies. Managing agents and trustees should ensure accurate reconciliation of these payments.
To verify payments, homeowners can email CSOS with their scheme details. This verification ensures that funds are correctly allocated, and any discrepancies can be addressed promptly.
Ensuring registration and compliance
It is a legal requirement for all HOAs and sectional title schemes to register with CSOS. Homeowners can request their body corporate or chairperson to provide the CSOS registration number. If there is any doubt, homeowners can contact CSOS directly to verify registration and compliance.
CSOS issues compliance certificates, ensuring that all rules and financial statements are in order. These certificates provide homeowners with the assurance that their scheme operates transparently and in accordance with the law.
Addressing disputes and ensuring fair practices
CSOS is committed to resolving disputes efficiently. Homeowners experiencing issues with levy payments, access to utilities, or other community-related problems should not hesitate to bring their concerns to CSOS. It is illegal to cut off basic utilities like water due to non-payment of levies, and CSOS treats such cases with urgency.
By intervening early in disputes, CSOS helps prevent minor issues from escalating into significant problems that require legal intervention. This proactive approach ensures that communities function smoothly and that residents’ rights are protected.
Louise Martin from Estate Living shares her thoughts on CSOS’s impact: ‘We at Estate Living are very proud to be part of the process of seeing CSOS come alive in the residential community sector. In the short period that CSOS has been around, there’s been a monumental movement in the market, showcasing the organisation’s commitment to enhancing community living.’
CSOS plays a vital role in maintaining harmony and compliance in residential communities. By understanding the services and support CSOS offers, homeowners and property managers can ensure that their schemes operate fairly and efficiently.
For more information, visit the CSOS website or contact them directly to learn how they can assist with your community scheme’s needs.
