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SchoemanLaw

3rd May 2023

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The Community Schemes Ombud Service, known as ""CSOS"" is a regulatory body developed to assist with and resolve 'Community 'Scheme' related problems. The Community Schemes Ombud Service Act defines a Community Scheme as '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, a share block company, a home or property 'owner's association, however constituted, established to administer a property development, a housing scheme for retired persons, and a housing co-operative as contemplated in the South African Co-Operatives Act'. 

How to lodge a dispute at CSOS?

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Section 38 (1) of CSOSA states that 'any person may make an application if such a person is a party to or affected materially by the dispute in 'question'. A '''person' includes the likes of an association, partnership, trust, corporation, private or public entity and such 'person's representatives, successors and assignees. 

After completing that inquiry, the next step is to lodge a formal application "("Dispute Resolution Form"") as per Section 38 (2) (a), which is required to be lodged in the prescribed manner as set out in the practice directives, which is after that lodged with an ombud and accompanied by payment of the relevant application fee.

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Applications can be submitted electronically via e-mail, hand delivery or alternatively registered post. In addition, each specific jurisdiction has its own e-mail address to which applications can be submitted and such information is readily available on the CSOS website. 

The next stage is to assess the matter at hand to determine the claim's validity. During this assessment, CSOS thoroughly assesses applications which it deems sound and rejects applications based on the following: 

  • fall outside its express jurisdiction; 
  • where an applicant fails to exhaust all internal conflict mechanisms first; 
  • where an applicant fails to furnish additional information upon request from CSOS timeously or within 14 (fourteen)days; 
  • where the matter is better suited for a different forum (i.e. court or tribunal); and 
  • where 'one's application for waiver of adjudication fees is denied.

Once the validity of a claim is established and verified, the application will be set down for Conciliation in terms of Section 47 of CSOSA, and notice will be served on the relevant parties to the dispute within 14 (fourteen) working days.

At the Conciliation stage, negotiations occur through a hearing or conciliation session. At this phase, all affected persons/entities should attend the hearing to state their case, provided they are permitted. 

The hearing is chaired by a CSOS-appointed conciliator, and his/her role, apart from facilitating the proceedings, is to assist disputing parties in reaching a settlement or some mutual consensus. Should this be improbable, the conciliator will, in such an instance, issue a Notice of Non-Resolution, and the matter will be referred to Adjudication. 

The final step in the CSOS process is the Adjudication phase, where additional investigations are conducted before any hearing occurs. Further documentation may be requested or put forward during these investigations, including photos, sworn affidavits, and even site inspections can be conducted where necessary. 

A CSOS-appointed adjudicator who will head the proceedings, however, he/she will, after careful consideration of the evidence presented, make an order binding on all parties. Prior to the hearing, the applicant must pay the prescribed fee for the process, as in instances where this is not attended to, the referral will not be actioned.

Conclusion

Often homeowners living within communities are plagued with managing conflicting personalities, dealing with disagreements on various shared interests and not to mention the occasional levy dispute, lack of privacy and blatant disregard for the 'Community Schemes' rules. Therefore, it is important to use the correct forum of CSOS.

Written by Robyn Shepherd, SchoemanLaw

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