The Sectional Title Schemes Management Act 8 of 2011 and the Community Schemes Ombud Service Act 9 of 2011 came into operation in 2016. Both Acts introduced various changes to sectional title law in South Africa. One of the notable changes is the establishment of an Ombud service to resolve sectional title disputes.
In terms of the Community Schemes Ombud Service Act (“the Act”) any person may bring an application to the Community Schemes Ombud Service (“the CSOS”) where they are a party to or are materially affected by a dispute falling within the jurisdiction of the CSOS. Some examples of disputes falling with the jurisdiction of the CSOS are sectional title financial and governance issues, meetings and management services.
Where a Body Corporate or owner or affected person has a sectional title dispute, they can now lodge an application with the CSOS.
Where a Body Corporate or owner or affected person has a sectional title dispute, they can now lodge an application with the CSOS. The matter will be allocated to the CSOS personnel and if there is a prospect of settlement the matter will be referred to an informal meeting for conciliation. If conciliation is unsuccessful then the matter will be referred to adjudication and an order handed down. If either party is unhappy with the adjudication order, they can appeal to the High Court within 30 days of the date of delivery of the adjudication order.
As the dispute resolution service by the CSOS is paid for by the CSOS levy now payable by all Body Corporates, this dispute resolution process is a cost effective process. At this stage the CSOS is proving to be a good forum for resolving a wide array of disputes as provided for in the Act.
Legal representation at the CSOS is only allowed in certain circumstances and legal costs are not generally awarded unless in exceptional circumstances. We can however still advise you on whether your dispute falls within the CSOS jurisdiction and assist you with your preparation for conciliation and/or adjudication and appeals to the High Court.
For professional advice concerning sectional title disputes please contact Chris Salmon.