WHY REGISTER YOUR SCHEME WITH THE CSOS

WHO IS CSOS?

As community living becomes a cornerstone of modern society, the imperative for robust governance and effective dispute resolution within these schemes is paramount. The Community Schemes Ombud Service (CSOS) emerges as a critical institution, dedicated to safeguarding the welfare of residents and ensuring the seamless operation of communal environments throughout the nation

Established under the Community Schemes Service Act 9 of 2011, the CSOS is an entity of the Department of Human Settlements. Its mission is to regulate the conduct within community schemes, fostering good governance that is essential for harmonious communal living. Defined by the CSOS Act as shared living arrangements with joint responsibility for land and buildings, community schemes are a unique residential dynamic that requires attentive oversight.

The CSOS’s mandate is multifaceted, encompassing the regulation and monitoring of scheme governance documentation, ensuring its quality and compliance. Additionally, the CSOS is tasked with developing a comprehensive dispute resolution service, providing essential training for conciliators and adjudicators, and maintaining a transparent repository of scheme governance documentation, accessible to the public both electronically and through other means.

Registration with the CSOS is not merely a formality; it is a critical step for community schemes to align with statutory requirements, guaranteeing that residents’ rights and responsibilities are upheld within a framework of legal and administrative support.

One might ask why register with the CSOS?

In accordance with the CSOS Act, all community schemes are mandated to register with the Community Schemes Ombud Service (CSOS). Registration must be completed within 30 days of either the CSOS Regulations' implementation on October 7, 2016, or the community scheme's date of incorporation as per relevant laws.

And what is a community scheme?

In terms of Section 1 of CSOS Act, the term “community scheme” refers to any scheme or arrangement where there is shared use of and responsibility for parts of land and buildings, including but not limited to:

• Sectional titles development schemes;

• Share block companies;

• Home or property owners’ associations (inclusive of nonprofit companies and common law associations);

• Housing schemes for retired persons; and

• Housing co-operatives.

What are the costs associated with registering a scheme?

Remarkably, there is no registration fee required.

As a resident within a community scheme, do I have the right to verify the registration status of my scheme?

Absolutely, as a community scheme dweller, you have the legal right to check with the CSOS whether your scheme is duly registered or not. It’s a provision that empowers residents to be informed and involved.

Good news is that, in a move that brings a positive change, the CSOS has, since the onset of March 2024, implemented a pivotal amendment to its Practice Directive on the registration of community schemes. This amendment is designed to simplify administrative procedures across the board. The revised directive is set to expedite processes and bolster efficiency, marking a significant step forward in the management of community schemes. Residents and managing agents alike can anticipate a more streamlined experience in their administrative interactions with the CSOS.

Previously, community schemes were required to submit several documents upon registration, including prescribed forms, rules, constitutions, regulations, and financial statements. However, the

Acting Chief Ombud, Ms Thembelihle Mbatha, in consultation with the stakeholders revised the Practice Directive to make the registration process more accessible. Amendments now allow for registration through the CSOS Connect online platform www. csosconnect.org.za or via a QR Code link, ensuring authorized representation during registration.

“Support for the registration process is readily available, with options to submit forms and documents via email or through the CSOS call centre. The CSOS commits to completing the registration of community schemes within seven days of receiving all necessary documentation” says Mbatha.

Following registration, schemes must submit supporting documents within thirty days for quality assurance and approval. These documents include scheme rules, constitutions, memorandum of incorporation, sectional title plans, levy schedules, financial statements, and audit reports.

This amendment underscores the CSOS's dedication to enhancing community scheme governance and providing a supportive operational framework. The streamlined process not only benefits individual schemes but also contributes to better management and conduct within collective living spaces.

For community schemes, this development signifies a leap forward in administrative efficiency and regulatory compliance, laying the groundwork for future improvements in the sector. Importantly, there is no registration fee for community schemes.

The heart of CSOS lies in its dispute resolution services. When conflicts arise whether over maintenance issues, noise complaints, or disagreements about levies CSOS steps in as a mediator. By providing free, equitable, and impartial resolution processes, CSOS ensures that disputes are addressed swiftly and fairly. Residents can

avoid the expense and time-consuming nature of private arbitration or lengthy litigation.

Courts recognise the importance of CSOS as the first port of call for dispute resolution. According to Section 59(a) (iii) and Regulation 18(8) of the CSOS Act, parties involved in community scheme disputes must approach CSOS before considering legal action in the High Court. This principle prevents unnecessary strain on the judicial system and encourages parties to explore alternative avenues first. Rushing to the High Court without considering CSOS is deemed an abuse of legal process.

In shared living, CSOS threads together harmony, fairness, and efficient conflict resolution. Registering your community scheme with CSOS is not just a legal obligation; it's a step toward fostering a thriving and cohesive community. So, next time a dispute arises, consider CSOS as your first stop, it’s where solutions begin and where community well-being flourishes.

Remember failure to register your community scheme is a criminal offense!

Who heads CSOS?

At the helm of this organisation CSOS, is the Acting Chief Ombud, Thembelihle Mbatha, a multi-talented young Chartered Accountant (South Africa).

She consistently receives recognition for her achievements in financial planning, strategic enhancements, and operational improvements. She assumed her acting duties in April 2023, Mbatha brings over 10 years of experience in finance and audit.

Her excellent reputation extends to problem-solving, enhancing customer satisfaction, and driving overall operational efficiency. Notably, she is adept at cost-saving while simultaneously increasing revenue collections.

Achievements:

• Winner of the 2018 Oliver Tambo Public Sector Leader Award

• Finalist in the CA(SA) Top Under 35 National Awards 2019

Finalist in two categories of the Standard Bank Top Women Awards in 2017:

• Top Women in Female Public Sector Leader Award

• Top Young Achiever of the Year

Beyond her professional accomplishments, Mbatha is a philanthropist at heart. She is passionate about mentoring young girls, ensuring the development of a sustainable pool of future female leaders. In her own words, “If we can lift one another as we rise, we can definitely change the world.”

Her message to all community schemes who are not registered please do, and to all that are registered and have been paying the CSOS levies, have you received any payment acknowledgment from the CSOS? Have you received a statement receipt reflecting all the levy payments made to the CSOS? If NOT,

we do ask that you come forward so we can allocate your payments accordingly.

WE REQUIRE THE FOLLOWING FROM YOU:

• All proof of payments made to the CSOS and the relevant levy calculators.

• CSOS registration number. Notification of changes within the Schemes Management e.g. Managing agent, Executive Committee etc.

OUR PLEDGE TO YOU:

• We will respond within 48 hours to your email queries.

• Attend to all queries in a professional manner.

• We have our readily available qualified personnel.

• The CSOS levy amount is calculated as follows: (ADMINISTRATION LEVIES PAID PER UNIT less R500.00) *2%, OR the Lesser of R40 per unit) per month.

• The CSOS Levy Calculator is available on the website: https://csos.org.za/ payment-of-levies/ 

CONTACT INFORMATION

Address:

Berkley Office Park, 8 Bauhinia Street, Highveld Techno Park, Centurion, 0169

Call: 0800-000-653

E-mail: info@csos.org.za

Website: www.csos.org.za

Registration: www.csosconnect.org.za