You may have noticed a charge on your monthly levy account called the “CSOS levy” and wondered what this is for.

What is the CSOS levy?

The CSOS levy is an amount that a community scheme collects from owners (with certain exceptions) which is then paid over to the CSOS on a quarterly basis.

What is a community scheme?

By definition, a community scheme is a “living arrangement where there is shared use of and responsibility for land/buildings such as sectional title, homeowners associations, retirement housing schemes, share block companies and housing cooperatives”.

The most common examples of community schemes in South Africa are residential complexes and estates.

 

What is the CSOS?         

The Community Scheme Ombud Service (CSOS) is an entity established in terms of the Community Schemes Service Act 9 of 2011. It was established to regulate the conduct of parties within community schemes

The functions of the CSOS are:

• to develop and provide dispute resolution services;
• to train conciliators, adjudicators and the staff of the CSOS;
• to regulate, monitor and control the quality of scheme governance documents, such as schemes’ rules and codes of conduct;
• and take custody of, preserve and provide public access to scheme governance documentation.

Dispute resolution

One of the most important functions of the CSOS is resolving disputes. Disputes in community schemes have traditionally been resolved by the courts. Litigation can be costly and slow.

The CSOS offers quick, informal and cost-effective processes, through which, disputes can be resolved.

Disputes may be resolved through conciliation or through adjudication. During conciliation, a conciliator assists the parties in reaching an agreed resolution of the dispute. If conciliation is not successful, the matter will proceed to adjudication. During the adjudication, the adjudicator will consider evidence of the parties and make an order, which may then be enforced.

So why am I paying this levy?

The CSOS provides important services to community schemes. These services are funded through the payment of your levy.