New community schemes ombud service open for business

27th January 2017 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

New community schemes ombud service open for business

Since the promulgation of the Community Schemes Ombud Service (CSOS) Act 2011, in October 2016, the ombudsman’s office has received 21 000 registration applications for community schemes.

During a briefing in Johannesburg, on Friday, CSOS ombudsman Themba Mthethwa said that prior to the promulgation of the Act, there were no figures on the number of community schemes in the country, but that all schemes now had to register with the CSOS.

Ninety-two new development registration applications for sectional titles have also been received since October, with all 92 applications having received registration certificates.

Further, CSOS has also received about 550 new applications for dispute resolutions since the promulgation of the Act. “This has now mushroomed, doubling from previous years, as people are becoming aware,” he said.

Noting that CSOS was not just set up to resolve “spats between neighbours”, he said his office would develop and provide an alternative, cost-effective dispute resolution service for community schemes.

“Eighty per cent of issues raised fall in the financial category, and usually involves incorrect and unreasonable levies, as well as levies that have not been paid,” said Mthethwa.

Further, the CSOS’s mandate is to investigate, adjudicate and resolve disputes involving sectional title and share block scheme, home owner associations and housing schemes for retired people. “We provide training and general education on the rights and obligations in these schemes,” he said.

At the end of December, CSOS received 773 new applications for dispute resolutions, with the majority, about 213, of those in Gauteng. “This is because most of the schemes are situated here,” said Mthethwa.

CSOS adjudicated its first case in January, which resulted in a settlement. “Justice is quick,” noted Mthethwa.