CSOS PRACTICE DIRECTIVE: NON-COMPLIANCE COULD LEAD TO IMPRISONMENT
Introduction
“CSOS”, more formally known as the Community Schemes Ombud, is the regulatory authority for all Community Schemes in South Africa and was established in terms of the Community Schemes Ombud Service Act 9 of 2011.
CSOS prioritizes the provision of dispute resolution services to homeowners and community schemes in South Africa, in terms of which there is a shared use of and responsibility for parts of the land and building, including but not limited to:
- Home or Property Owners Associations;
- Sectional Title Development Schemes; and
- Housing Schemes for retired persons.
CSOS was also primarily established to handle conflict in a fair, efficient, and cost-effective manner, as well as to promote a sense of peace and harmonious living within community projects.
Compliance with the Updated Practice Directives
Of importance to note is that a new Consolidated Practice Directive was signed and published on 18 July 2025, and all managing agents and trustees of estates, residential complexes, and old-age homes (amongst many others), are cautioned to ensure strict compliance herewith as this new CSOS Practice Directive supersedes all previous documents and now serves as a single reference source for managing agents, trustees and other stakeholders.
Failure to meet these statutory obligations could now result in significant fines or even prison sentences.
Undesirable Rules
One of the most notable changes is the identification and elimination of “undesirable rules” in community schemes. These are provisions that are considered unconstitutional or discriminatory, meaning they have no legal validity. Any rule deemed to be undesirable that is submitted with a scheme’s governance documents, may either be rejected during review processes or, at a later stage, struck down by adjudicators.
Examples of rules that are deemed to be problematic include restrictions on domestic workers – such as barring them from receiving visitors, interacting with one another on communal property or forcing them to wear identification tags, or compelling owners to use a specific real estate agency for rentals or sales. It is said that such rules violate constitutional rights and will not be upheld. In one matter, a rule prohibiting cats whilst allowing dogs was struck down as it unfairly limited owners’ enjoyment of their property.
The Repercussions
In order to ensure that community schemes remain compliant with this new directive, CSOS have now begun conducting on-site inspections.
All penalties for the contravention of the Directive are imposed under Section 34(1) of the CSOS Act, which doesn’t stipulate the exact amount to be fined but the severity of the sanction will reflect the seriousness of the offence. First-time breaches could result in imprisonment for up to 5 years whilst repeat violations could result in sentences of up to 10 years.
Conclusion
The updated CSOS Practice Directive marks a turning point in the governance of community schemes in South Africa. By prioritising the removal of unconstitutional and discriminatory provisions, CSOS reinforces its mandate to promote fairness, equality and harmonious living. Trustees and managing agents now carry heightened responsibility to ensure compliance with the new Directives. Therefore, it is imperative that all community schemes take immediate action to review their governance documents to make sure that all aligns with the new Directive.
Written by Cade Van Wyk
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