CSOS introduction

1. INTRODUCTION
TO CSOS

2. History
• Sectional Title Act, 66 of 1971
• Sectional Title Act, 95 of 1986
• Fell under Department of Land Affairs (now
Rural Development and Land Reform)

3. New Position
• Sectional Title Act, 95 of 1986, remains as
amended (STA)
• Sectional Titles Schemes Management Act, 8
of 2011 (STSMA)
• Community Schemes Ombud Service Act, 9
of 2011 (CSOSA)
• Now falls under Department of Human
Settlements (formerly Department of Housing)

4. Purpose
• To separate the provisions of the STA that
pertain to registration and survey matters
from those that pertain to governance and
administration
• To regulate the conduct of parties within
community schemes and to ensure their
good governance

5. When?
• Regulations
• Proclaimed to come into operation on
7 October 2016

6. Aim of CSOS
A. Establish the Ombud Service
B. Provide dispute resolution mechanism
C. Train employees
D. Custody and Control of documents
E. Promote and monitor good governance
F. Provide education & raise awareness

7. Community Scheme
• Sectional Title Schemes
• Share Block Schemes
• Homeowners Associations (estates / Gated
communities)
• Housing Schemes for Retired Persons
• Housing Co-Operatives

8. A : Community Scheme Ombud
• Head office in Sandton
• Board of Service
• Chief Ombud and Chief Financial Officer
and 7 non-executive members
• Regional Offices in Cape Town & Durban
• Regional Ombud and Deputy Ombud
• Adjudicators and Concilliators

9. B : Dispute Resolution
• Conciliation
• Adjudicator
• 29 orders for relief
• Divided in 6 Categories in Sec 39 :
Financial, Behavioral, Scheme
Governance, Meetings, Management
Services, Works, General

10. B : Dispute Resolution (cont)
• No right to legal representation (may agree)
• Right to appeal – only on question of law
• Order enforceable in Magistrates Court or
High Court
• STSMA not only individuals but also Body
Corporate

11. C : Train Employees
• Develop and Identify courses
• Working knowledge of the law
• Investigating, Conciliation, Adjudication
• Raise Awareness
• Paddocks

12. D : Custody & Control of
Documents
• Governance documents filed with Ombud
• 30 days from 7 October 2016 /
establishment of new schemes
• Annual returns, including financial
statements
• Approval of Rules of Sectional Title
Schemes

13. E : Good Governance
• Promote and Monitor Good Governance in
Community Schemes
• STSMA gives powers to declare members
contributions as incorrect or unreasonable
• STSMA recover arrear contributions

14. F : Education & Awareness
• Develop, identify and publicise education
and information programs
• Owners, occupiers, executive committees
and other persons who have rights and
obligations in the scheme.
• To commence in 2017

15. Funding
• Government
• Application Fees
• Levies
Max R40, exempted under R500
(2% of amount exceeding R500)
• Payable quarterly from January 2017

16. Other interesting facts

17. Duties of Scheme Executive
• Trustee, Director or other person with
control
• Steps to inform and educate himself
• Obtain sufficient information and advice
• Attend all meetings, unless excused in
writing

18. STSMA
• Administration Fund
• Reserve Fund
• 10 year Maintenance, Repair &
Replacement plan
• Approval of change in rules
• Def of Primary Section vs Utility Section
• Proxy not allowed for more than 2 persons
• Executive vs ordinary Managing Agent

19. www.kvvinc.co.za
087 351 2022
training@kvvinc.co.za