The Directive applies to all types of community schemes as defined in the Community Schemes Ombud Service Act 9 of 2011, such as sectional title complexes, homeowners’ associations, retirement villages and share-block developments. The previous CSOS circulars, guidelines, and practice directives on the same subject matter are replaced by this Directive that now provides a unified source of reference to the prescribed practice issued by CSOS.
If you live in a community scheme, you might have, at some point, received a fine. The fine may have been for late/unpaid levies, parking in the wrong place, or even keeping a pet against the rules. But did you know that under the new Directive, the Body Corporate of your sectional title cannot simply issue fines without following the proper procedure?
The Directive introduces clearer standards on how fines and penalties must be handled. Residents are now protected from unfair or seemingly illogical enforcement by trustees or managing agents.
Before any fine can be imposed on you, the scheme must issue a written warning setting out the alleged contravention. A dispute may only be referred to the CSOS once reasonable efforts have been made to resolve it internally. This allows you to be heard while ensuring a fair and equitable process, which must ensure that the fine is reasonable, proportionate, and clearly supported by the scheme’s registered rules. In fact, the Directive states that fines may not be equal to or exceed the monthly levy of the property, and schemes that fine without due process may find themselves in violation of the Community Schemes Ombud Service Act 9 of 2011, the Sectional Titles Schemes Management Act 8 of 2011, and even the right to fair administrative action as determined by the Constitution of the Republic of South Africa.
Should you believe that you have been subjected to unfair treatment or penalties during the dispute resolution process, you can lodge a dispute with the CSOS. The Ombud has the authority to investigate and even overturn fines that were imposed contrary to these rules.
Other key changes in the Directive include registration of schemes, compliance and enforcement, scheme governance & rules, financial management & CSOS levies, dispute resolution and protection of personal information and access to information.
Community schemes are encouraged to familiarise themselves with the new Directive and, where necessary, update their rules and procedures to align therewith.
With a single, authoritative rulebook now in place, community schemes have the opportunity to strengthen governance, reduce disputes, and ensure that fines are handled with fairness and transparency.
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