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It’s taken nearly a decade for the Community Schemes Ombud Service (CSOS) to truly grasp the nuanced and complex nature of community living in South Africa—beyond the confines of traditional sectional title developments.
When CSOS was established in terms of the CSOS Act (effective 2016), its primary focus was sectional title schemes. However, the landscape of shared living in South Africa is far broader and more intricate, including Homeowners’ Associations (HOAs), retirement villages, share blocks, and other secured community schemes. Unfortunately, early directives and enforcement efforts often reflected a limited understanding of these broader dynamics, sometimes clashing with other legislation such as the Companies Act or the Constitution itself—causing confusion, frustration, and uncertainty within the industry.
And then there was the VBS ‘unlawful investment’ controversy: R80 million in levies collected from homeowners went missing in the early years—although they have worked at recovering these unlawful investments – this incident damaged trust and highlighted the growing pains of a newly formed public entity learning the ropes. With CSOS reportedly collecting millions in levies monthly, questions have continued to swirl around how those funds are spent, and whether value is being delivered in return.
However, like many new entities, CSOS has had to pay its “school fees.” It had to build an organisation from scratch: recruiting staff, developing digital systems, interpreting legislation, and navigating its mandate under public scrutiny. Almost 9 years later, CSOS appears to be finding its feet, and the publication of the final CSOS Practice Directive on Friday, 18 July 2025 marks a significant milestone in that journey.
‘This Practice Directive replaces all earlier versions and aims to serve as a single, coherent reference for all forms of community housing,” explains Johlene Wasserman, Director of Community Schemes and Compliance at VDM Law—and a former senior staff member at both CSOS and the PPRA.
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According to Wasserman, the new directive brings teeth to enforcement: those in breach of CSOS regulations could now face stiff penalties.
Over the last few years, CSOS has been actively reviewing scheme governance documentation, flagging and rejecting rules deemed discriminatory, unconstitutional, or unreasonable. These are termed “undesirable rules”
CSOS has outlined specific examples of “undesirable rules” which will no longer be tolerated, including:
- Excessive fines: Schemes must follow due process, and fines may not exceed the monthly levy amount. Trustees may not unilaterally impose penalties.
- Forced use of specific Property Reactionaries: Restricting an owner’s right to choose their rental or sales agent is a legal overstep.
Legal precedents speak volumes
Legal history has already begun to shape precedent. Consider:
- Van Niekerk vs Ireland Gardens Body Corporate: A rule banning cats (but not dogs) was deemed unfair and overturned.
- Ramushu vs Midlands HOA: A homeowner’s biometric access was revoked. CSOS ruled this was a violation of ownership rights and ordered reinstatement.
“These rulings make it clear—pet bans, biased access controls, or excessive rule enforcement can and will be challenged,” says Wasserman.
CSOS’s core role: conflict resolution (after you’ve tried everything else)
Let’s not forget: CSOS was originally created because South African courts were inundated with neighbour disputes. It is a dispute resolution ombud, not a first stop. Before you approach CSOS, you must follow your internal dispute resolution process in full—and only escalate once those channels have failed.
This is why new buyers and tenants must educate themselves before buying into community living. Not all estates are the same—and not all rules are equal.
Do your homework. Visit www.estate-living.co.za to research the estate you plan to move into. Understand your rights, obligations, and governance structure. Ask questions: Can I keep a pet? Are there short-term rentals on site? What is the dispute process? Don’t rely solely on property practitioner—ask the Estate Manager or a trustee.
Living in a community means more than owning a property—it means participating in a shared environment. Be realistic about the costs of maintenance, rules about alterations, lighting, noise, and pets. If you plan to live there full-time, avoid complexes designed for short-term rentals. Eventually, the transient lifestyle will wear thin.
The legal bottom line
“Penalties for failing to register your scheme, update governance documentation, or comply with CSOS directives will be enforced under Section 34(1) of the CSOS Act,” says Wasserman. “Trustees and managing agents must take this seriously.”
At VDM Law, Wasserman and her team help schemes navigate CSOS compliance—from registration and documentation quality assurance to dispute resolution and annual return submissions.
With investigators from CSOS now conducting site visits and audits, the time to act is now.
Legal clarity may have taken years to arrive—but it’s here. And community schemes who fail to align with the new directive could find themselves on the wrong side of the law
🚨 New CSOS Rules Just Dropped!
Are you ready for the Consolidated Practice Directive changes?
I’m Johlene Wasserman from VDM Attorneys, sectional title law expert 🏢 — and on Friday, I was featured in BusinessTech and Cape Talk radio, breaking down exactly what these changes mean for your scheme.
Now I’m hosting a live 2-hour online training to show you:
✅ What’s changed
✅ Who’s affected
✅ How to stay compliant (and avoid disputes)
📅 19 Aug 2025 | 10:00–12:00 | MS Teams
🎯 RSVP by 15 Aug – Limited spaces!
Book here: events@vdm.law
