The 2025 CSOS Directive – A new era of fairness and accountability in community schemes?

The implementation of the 2025 CSOS Consolidated Practice Directive is certainly a step forward, in harmonising the growing need for community living, and ensuring that vital principles of legality and fairness are being upheld.  It weaves fragments of our legislative framework governing schemes, into a uniformed solidification of the rules and its predecessors, now dictating compliance. This uniformity encompasses the paramount significance owed to our constitution and has positively considered a more constitutional re-alignment.

A key constitutional adaptation to the directive, is undesirable rules within schemes, such as those infringing on basic human rights contained in the constitution, more specifically those regulating domestic workers rights to be treated without any discrimination. CSOS has the duty to uphold the constitution of the country and in doing so may reject any rule that is contradictory to the values contained therein. Should a rule lack constitutionality it will lack legal standing to be implemented and upheld.

The directive also re-enforces principles of fairness and equality, as trustees may no longer be bias in what repercussions rule breaking owners may face. Due process is to be followed before penalties and fines are imposed on any owner. This entails written warnings, dispute resolution and timeframes. Fines should further not exceed the monthly levy amount of the defaulting owner in question. In addition, owners may not be forced into the use of a specific estate agent to rent or sell their property.

There are further key legal requirements stipulated in the directive. Schemes are to ensure compliance and enforcement with the registration of their communities, annual return submissions, payment of levies and documentation quality assurance, amongst others. A non-compliant scheme may face penalties which can include up to 5 years’ imprisonment for first time offences and up to 10 years for repeat offences. These measures now ensures well oil run schemes which ultimately protects the value of the owners property. Compliant schemes are further more likely to attract better investments.

The new directive also sets out clear procedures and steps which are aimed at promoting fair and timely resolution of disputes. It further ensures all parties have an equal opportunity to present their cases and that outcomes respect the rights of each party involved in the dispute. This also affords scheme members access to dispute resolution through the CSOS platform. In an environment where courts are already inundated with matters, access to further judicial mechanisms may reduce strain on current backlogs faced.

CSOS further has a legal mandate to oversee and regulate Community Schemes and ensure good governance, accordingly CSOS can recommend an Administrator from their panel, must be notified of the appointment of an Administrator and subsequently served with an application in this regard. Once the Magistrate Court has issued a court order for the appointment of the Administrator, the Administrator has a duty to report to CSOS in accordance with Section 16(4) of the STSM Act. This will ensure that Administrators are held accountable for the decisions and steps taken during their appointment.

A member of the Community Scheme shall further not be entitled to access any members’ Personal Information without their consent, other than information readily available in terms of the governance or management of affairs of the Community Scheme. This is a further attempt to align the governance of scheme members to the constitutional right to privacy and the POPI act. Click here for our blog on POPIA compliance

Whilst all these steps have great theoretical benefits we are yet to discover the practicality of them, as CSOS rolls out their application and enforcements in the months to follow. One can certainly be hopeful, however consideration towards the availability of CSOS resources and capacity should certainly be a significant aspect in the wholistic success of the new directive.

In conclusion, continuous improvement is better than delayed perfection. Please feel free to read the updated directive yourself for more information, or visit our Resource Library for a breakdown.