The Practice Directive is designed to ensure the proper administration and governance of various community schemes, including sectional title schemes, homeowners’ associations, housing co-operatives, share block companies, and housing schemes for retired persons. It provides a centralised reference point for procedures and replaces all previous guidelines.
Structure and Content:
The Directive is divided into five chapters:
- Registration, Compliance, and Enforcement:
All community schemes must register with CSOS via the CSOS Connect platform. The registration is mandatory and free of charge. Detailed steps are provided for registering new or existing schemes and for uploading required supporting documentation. Community schemes must also comply with regulations by submitting annual returns, maintaining quality governance documents, and paying levies. Enforcement mechanisms include engagement strategies, informal mediation, and, if needed, referral to the National Prosecuting Authority. Non-compliance can lead to fines, imprisonment, or both. - Scheme Governance:
Governance rules are outlined, including how schemes should operate under the Disaster Management Act. Specific procedures for approving special and unanimous resolutions are covered, both for sectional title and other community schemes. There is also a detailed process for lodging, amending, or repealing scheme rules, along with a list of “undesirable rules” which are not permitted. Guidelines are provided for the appointment of Executive Management Agents (EMAs), administrators, and the process of obtaining consent for exclusive-use areas. - Levy Payment and Annual Returns:
Community schemes must collect and remit levies to CSOS. The levies fund the operation of CSOS and are mandatory unless exempted. This chapter covers levy calculation, payment intervals, invoicing, non-payment consequences, and VAT implications. Additionally, schemes must submit annual returns, and specific documentation is required for compliance. - Dispute Resolution:
CSOS offers a structured process for resolving disputes between owners, occupiers, and managing entities. Before approaching CSOS, internal dispute mechanisms must be exhausted unless urgent relief is required. The process includes conciliation and adjudication, with defined procedures, hearing rules, and powers of adjudicators. Legal representation, costs, urgent applications, and appeals are also addressed. - Access to Information and Personal Data Protection:
CSOS must adhere to the Protection of Personal Information Act (POPIA) and the Promotion of Access to Information Act (PAIA). The directive outlines the role of Information Officers, procedures for accessing scheme governance information, and the safeguarding of personal data.
General Guidelines:
All parties interacting with CSOS are expected to act professionally and comply with deadlines. Although services are moving online via CSOS Connect, in-person support remains available. Communication must be in English, though assistance is offered in other official languages when needed.
Read the full PDF below for accurate information:
