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The remuneration and expenses of the administrator are administrative expenses
contemplated in section 3(1)(a) (Administration Fund).

THE COMMUNITY SCHEMES OMBUD SERVICE ACT 9 OF 2011,
AND REGULATIONS

The CSOSA applies to “community schemes” which are defined as shared use of and
responsibility for parts of land and buildings, including but not limited to a sectional titles
development scheme, a share block company, a home or property owners’ association,
however constituted, established to administer a property development, a housing scheme
for retired persons, and a housing co-operative as contemplated in the South African
Co-operatives Act (no 14 of 2005).

GOVERNANCE AND CONTROL OF COMMUNITY SCHEMES

CSOS establishes an Ombud Service, with its main functions as follows:
◆◆ To regulate, monitor and control the quality of all sectional title and other scheme

governance documentation.
◆◆ To develop and provide a dispute resolution service.
◆◆ To provide training for conciliators, adjudicators and other employees of the service.
◆◆ To take custody of, preserve and provide public access electronically, or by other

means to sectional title scheme governance documentation and such other scheme
governance documents.
◆◆ provide education and documentation to owners, occupiers, executive committees as
regards their rights and obligations.

APPLICATIONS FOR RELIEF TO THE CSOS

Any person may make an application to CSOS for dispute resolution, if such person is a
party to or affected materially by a dispute (the relief is therefore available to persons such
as tenants, owners, trustees etc.). Such an application must be made in the prescribed
manner and lodged with the Ombud Service, and accompanied by the prescribed
application fee. Section 39 and 40 set out the grounds on which such an application may
be made to the Ombud Service, which inter alia, includes, matters in respect of financial
issues, behavioural issues, scheme governance issues, meetings, management services,
any works pertaining to private areas and common areas, and any general and other issues.

CONCILIATION

On acceptance of an application and after receipt of any submissions from affected
persons, or responses from the applicant, if the Ombud considers that there is a reasonable
prospect of a negotiated settlement of the dispute, he must refer the matter to conciliation.

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