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The payment of levies is essential for the maintenance and management of community schemes in South Africa. These levies cover various costs, including, but not limited to maintenance, insurance, and administrative expenses that will ensure the running of a community scheme. Community schemes often face various challenges where there is non-payment of these levies from home owners. Non-payment can lead to a lack of funds for essential services and the increased costs for debt collection. This article will explore the navigation of dispute resolution through CSOS by looking at community schemes that can refer to CSOS, type of disputes that can be referred, the process involved and the execution of the adjudication order from CSOS. And the option available for community schemes to approach the Magistrate and High Court directly, even with the introduction of the directive on mediation before litigation.
1. What is CSOS?
CSOS means the Community Schemes Ombud Services operating in terms of the Community Schemes Ombud Services Act 9 of 2011. It resolves disputes within community schemes by being an alternative dispute resolution body, offering services like mediation, conciliation and adjudication.
2. The type of community schemes that can refer to CSOS?
A community scheme means “any scheme or arrangement in terms of which there is shared use of and responsibility for parts of land and buildings, including but not limited to
- Sectional titles development scheme
- Share block company
- Home or property owner’s association
- Housing scheme for retired persons
- Housing co-operatives”
3. The type of disputes can be referred to CSOS?
- Financial disputes regarding levies, budgets and financial management of the scheme;
- Behavioural disputes regarding noise complaints, pet disputes;
- Scheme governance issues relating to rule interpretations;
4. The process in referring a dispute to CSOS
CSOS provides a dispute resolution service which involves the following:
- Referral: A dispute is referred to CSOS, using the prescribed application for dispute resolution form and paying the applicable fee.
- Assessment: CSOS assesses the dispute.
- Conciliation: Depending on the issue at hand, the dispute may be referred to conciliation, where a CSOS Conciliator assists the parties in reaching a resolution.
- Adjudication: If conciliation fails, the matter will be referred to adjudication. An Adjudicator will conduct an investigation by considering all the evidence provided and issue an order that is binding on all parties.
If you require legal advice with dispute within your community scheme, consult with our litigation attorneys. We have considerable experience related to all matters related to governance, mediation, compliance, ombudsman complaints, and any other dispute resolution matters.
- Approaching your attorneys at Van Deventer and Van Deventer Inc after receipt of an adjudication order
Upon receipt of a binding CSOS Adjudication order, community schemes can consult with Van Deventer and Van Deventer Inc. for expert legal advice in executing an adjudication order through the sale of moveable or immovable property. Our community schemes attorneys are well-versed and have a great deal of experience in acting on CSOS Adjudication orders.
- The option to approach the Magistrate and High Court directly
A key question that arises is whether community schemes can bypass CSOS and take matters directly to court. While CSOS is designed to be expeditious, the process in being granted an order does take time; there have been instances where there are not enough adjudicators and matters do take a long time to be processed. Community schemes therefore have the option to approach the court directly.
The Magistrate and High Court have introduced a mediation directive where the notice to oppose or accept mediation is provided in civil cases.
There is no provision in the CSOS Act which excludes the jurisdiction of the Magistrate or High Court, nor is there a provision conferring exclusive jurisdiction on CSOS to determine disputes of community schemes. The CSOS Act also does not have a provision which states that a party must first approach the Ombud before they can approach the High Court for recourse. Our attorneys at Van Deventer and Van Deventer Incorporated are well versed in dealing with litigation in matters related to community schemes.
- Conclusion
While CSOS offers a cost-effective solution, the Magistrate and High Court do hold the necessary jurisdiction to be approached directly. At Van Deventer and Van Deveneter Incorporated, we can assess your specific situation, advise you on the most appropriate forum for your matter, and provide experienced representation to protect your rights and achieve the best possible outcome. Contact us today to discuss how we can assist you.