If you live in a community scheme, you’ve probably seen CSOS Levy on your statement. If you’re wondering what is the CSOS or What is a CSOS Levy? You’ve come to the right place.
The Community Schemes Ombud Service (CSOS) Act is now fully operational and applicable to all community housing schemes including Sectional Titles and share block schemes, cluster complexes and estates run by homeowner associations (HOAs), retirement villages, and housing co-operatives.
What is the CSOS
The Community Schemes Ombud Service (CSOS) is the Ombud for all community schemes in South Africa. The act was established in 2011 to regulate the conduct of parties within community schemes.
CSOS gives community scheme members access to a low-cost dispute conciliation (mediation) and adjudication (arbitration) service provided by the statutory Community Schemes Ombud Service so that they do not need to pay a private arbitrator or go through costly and lengthy litigation.
The Ombuds Office will be able to decide all matters related to the finances, governance, and management of community schemes as well as the conduct of residents, and an adjudicator’s order will carry the same legal weight as a magistrate’s court judgment.
The CSOS is designed to provide an alternative, impartial and transparent service for the resolution of administrative disputes in community schemes. The Community Schemes Ombud Service Act, 9 of 2011 (“the CSOS Act”) provides for:
- the establishment of the Community Schemes Ombud Service (“the CSOS”), with detail of its mandate, management, and functions; and
- a dispute resolution mechanism for administrative disputes that arise in community schemes and the collection of outstanding member contributions.
The independent CSOS employees must act impartially in assisting to resolve community scheme administration disputes.
What does CSOS Levy mean?
CSOS Levies are paid to the Community Schemes Ombud who provides a dispute resolution service, regulates and monitors the quality of all community scheme governance documentation, provides training and consumer awareness. These levies are used to fund its operations.
Why must I pay levies to CSOS?
According to CSOS Regulation 11(1), every community scheme must pay CSOS levies on a quarterly basis.
Listen to the full episode on the UNPACK Podcast
- What is a sectional title vs freehold?
- Can a sectional title be converted to a full title?
- What is a body corporate and Trustees of a scheme?
- What is CSOS and how they help sectional title scheme members?
- Purpose of levies and how they are calculated in a sectional title development?
- 5 questions to ask before purchasing a sectional title property?