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The CSOS Practice Directive No 1 of 2018 was issued on the 14^th of June 2018 and provides amended and more detailed guidelines in respect of the initial Practice Directive (No 1 of 2017) issued on the payment of levies and fees.

In this Practice Directive, you will find the following:

• the difference between a “CSOS levy” and a “scheme levy”;
• an explanation of a Community Scheme’s obligation to pay the CSOS levy;
• the payment intervals of the CSOS levy;
• an explanation on the administrative process to be followed by a Community Scheme for the payment of their CSOS levy (including the reference numbers and banking details to be used for the payment of the CSOS levy);
• guidelines on how to deal with CSOS levies if you stay in a “scheme within a scheme”;
• confirmation of what will happen if your Community Scheme fails to pay its CSOS levy.

The CSOS Practice Directive No 2 of 2019 was issued on the 1^st of August 2019 and provides amended guidelines in respect of the first Practice Directive (No 1 of 2018) issued on the payment of levies and fees.

This Practice Directive differs from the one issued in 2018 in that it:

• amended the email address to be used by Community Schemes that have not yet been issued with a registration/reference number (paragraph 6.1);
• added a request that Community Schemes inform CSOS when they change their Managing Agent to ensure their receipt statements are sent to the correct Managing Agent;
• added a paragraph dealing with the waiver of levies (where a unit owner has been exempted from paying CSOS levies).

On the 25^th of May 2020, CSOS issued a Practice Directive regarding the amendment of rules and issuing of compliance certificates during the lockdown period.

In summary, this Practice Directive provides:

• confirmation that CSOS’ Governance Unit completed the review of most of the Community Scheme governing documentation that was submitted to them;
• confirmation that they will be issuing compliance certificates to Community Schemes whose rules were approved and compliant;
• the process to be followed by CSOS in respect of the issuing of these compliance certificates.

On the 6^th of May 2021, the CSOS issued an updated circular on the amendment of rules in terms of the Sectional Title Schemes Management Act, 8 of 2011 (“STSMA”).

In this circular Community Schemes will find guidelines in respect of the following:

• the administrative procedure to be followed when applying to have their rules amended;
• the requirements to be met in respect of an application for the amended of the scheme’s rules;
• the quality assurance process to be followed by the CSOS when reviewing the application for the amendment of the Community Scheme’s rules;
• the undesirable rules as identified by the CSOS.

The CSOS Practice Directive No 1 of 2019 was issued on the 1^st of August 2019 and replaced the Practice Directive No 2 of 2018 on dispute resolution in its entirety. This Practice Directive provides detailed information on the implementation, procedures and requirements for dispute resolution applications lodged with the CSOS.

More specifically, this Practice Directive provides guidelines in respect of the following:

• the required form to be completed when applying for dispute resolution at CSOS;
• where to find and submit the required dispute resolution application form;
• guidelines on how to complete the required dispute resolution application form;
• the requirement of an internal dispute resolution process;
• the administration process followed by CSOS after submission of an application for dispute resolution, including the payment process of the prescribed fee;
• the processes followed to resolve the dispute (in the form of conciliation and adjudication);
• the Adjudication Order issued and how to enforce it if there is non-compliance;
• what CSOS deem as urgent matters and how to apply for relief in urgent matters;
• the appeal process to be followed if not satisfied with the Adjudication Order issued (remember you can only lodge for appeal on a question of law).

The Amendments to the 2019 Practice Directive were issued on the 2^nd of December 2021 and provide updated guidelines on the implementation, procedures and requirements for dispute resolution applications lodged with the CSOS.

More specifically, the updated guidelines include:

• The indefinite suspension of the prescribed dispute resolution application fee;
• The waiver of the prescribed adjudication fee;
• The reduction of the number of days’ notice (from 10 days to 5 days)an applicant will be allowed to inspect the submission and to provide a written response relating to the issue raised in the submission (extension to be considered in exceptional cases);
• The reduction of the notice period to be given to parties in terms of 17.1 of the Practice Directive is herein reduced for conciliation and adjudication (from 14 days to 7 days);
• Commitment of a “90-day” timeframe within which CSOS must dispose of disputes.

The CSOS Practice Directive No 4 of 2022 was issued on the 4^th of February 2022 to provide more information as to who will be entitled and/or qualify to apply for a discount or waiver for the payment of CSOS levies.

In this Practice Directive you would find the following:

• categories of persons who can apply for a discount or waiver for the payment of CSOS levies;
• categories of persons who automatically qualify for the waiver of the payment of CSOS levies;
• the procedure to follow when you are applying for a discount or waiver of the payment of CSOS levies;
• grounds of refusal for an application for a discount or waiver.

On the 1^st of August 2018, the CSOS issued a circular on the procedure for the application of unanimous and special resolutions as set out in terms of section 6(9) of the Sectional Title Schemes Management Act, 8 of 2011 (“STSMA”).

Section 6(9) of the STSMA states:

“6. Meetings of Bodies Corporate

(9) A Body Corporate or an owner who is unable to obtain a special or unanimous resolution may approach the chief ombud for relief.”

In this circular Community Schemes will find guidelines in respect of the following:

• the procedure to follow when applying to the CSOS for relief in terms of section 6(9) of the STSMA (quoted above);
• the documentation to be submitted in support of an application for relief in terms of section 6(9) of the STSMA;
• the approval and assessment process to be followed by the CSOS.

On the 31 st of August 2021 the CSOS issued an updated circular which provides more information and guidelines on the procedure for the application of unanimous and special resolutions as set out in terms of section 6(9) of the Sectional Title Schemes Management Act, 8 of 2011 (“STSMA”).

In this circular you will find:

• Guidelines on how to file an application for the approval of a unanimous and special resolution
• The approval process to be followed by the Community Scheme before submitting an application of this nature
• The supporting documentation to be filed with the application to CSOS
• The assessment procedure followed by CSOS after receiving the application
• Guidelines on when an application will be rejected by CSOS
• More information on the notice by the Chief Ombud will send to the Community Scheme

The first CSOS Circular on the annual returns was issued on the 31 st of August 2021 and provide guidelines to Community Schemes on the procedure and content requirements for the registration and submission of their annual returns.

In this Circular, you will find:

• The administrative procedure and requirements to register a Community Scheme at CSOS
• Confirmation as to when a Community Scheme must file their annual returns
• A list of documentation that has to be filed with the annual returns
• The procedural requirements that will be followed by CSOS after submission
• Guidelines on what to do if there was a change in the Scheme Executives’ particulars

On the 31 st of August 2021, CSOS issued a circular on the opening of a bank account in terms of the Sectional Titles Schemes Management Act, 8 of 2011 (“STSMA”). The aim of this circular is to provide guidelines to Sectional Title Schemes on the opening and operation of a Body Corporate bank account.

In this circular, you will find:

• An explanation of the STSMA requirement to open and manage a bank account on behalf of a Body Corporate
• The documents required to open a bank account

On the 4^th of February 2022, CSOS issued Practice Directive 1 of 2022 on Compliance and Enforcement in terms of section 36 of the CSOS Act. This directive is focused on the establishment and maintaining of a “pre-compliance culture” amongst community schemes and to ensure they are aware of, and understand their obligations.

In this circular, you will find:

• a list of legislation a community scheme has to comply with;
• confirmation from CSOS that they will prioritise community schemes that are willing to comply with the CSOS laws;
• confirmation from CSOS to guide and assist community schemes to return to compliance with the CSOS laws;
• the action that will be taken by CSOS to enforce compliance and the enforcement options, including the fines and penalties involved;
• confirmation as to where one can report non-compliance with CSOS

On the 24^th of March 2020, CSOS issued their first Practice Directive in response to the initial 21-day nationwide lockdown period as announced by the South African President, Mr Cyril Ramaphosa.

In this Practice Directive you would find the following:

• details on the suspension of contact processes such as conciliation, adjudication and investigation until 17 April 2020;
• confirmation that all matters set down for hearing will be postponed until the national lockdown is suspended;
• the contact information in the event of exceptional circumstances.

On the 27^th of March 2020, another COVID-19 Practice Directive was issued by CSOS providing a plan to be implemented by Community Schemes in terms of the Disaster Management Act 57 of 2002 (“DMA”) and its Regulations.

This Practice Directive deals with the following:

• the regulation that prohibits gatherings in the DMA Regulations;
• the regulations to be applied by Sectional Title Schemes during the lockdown period in respect of Trustee meetings and Owners meetings (Annual General Meeting and Special General Meeting);
• how Homeowners Associations and Share Block Companies can continue with their meetings;
• how Community Schemes should deal with the health of their employees and scheme members;
• health tips;
• key contacts at CSOS during lockdown.

On the 21^st of April 2020, an amendment to the Initial COVID-19 Practice Directive was issued by CSOS in line with the extension of the lockdown period and the Disaster Management Act 57 of 2002 (“DMA”) Regulations.

This Practice Directive makes provision for the following:

• An Operational Response Plan confirming:
  • dispute resolution service will resume only after the lockdown has been lifted;
  • email addresses to be used for the submission of Community Scheme registrations, annual returns, waiver applications, amendments to Community Scheme rules and training requirements.

• A plan to be implemented by Community Schemes on the:
  • use of Common Property;
  • Community Scheme Executive’s duty to ensure compliance with the DMA Regulations (the wearing of masks, social distancing, sanitising);
  • convening of meetings;
  • consideration of reasonable payment arrangements and/or relief plans for the payment of levies in circumstances where their members have been adversely affected by the COVID-19 pandemic.

On the 23^rd of June 2020, CSOS issued a Practice Directive to amend the 2019 Practice Directive on Dispute Resolutions and to provide clarity on Community Scheme meetings during Level 3 lockdown.

In this Practice Directive you will find:

• confirmation that the CSOS reconvened the conciliation and adjudication of dispute resolution applications as of the 1^st of June 2020;
• confirmation that the above-mentioned procedures can take place without parties having to meet face to face;
• timeframes for the filing of certain documentation and/or responses that form part of the dispute resolution process;
• the manner in which conciliation procedures will be conducted under the Disaster Management Act 57 of 2002 (“DMA”) Regulations;
• the manner in which adjudication procedures will be conducted under the DMA Regulations;
• guidelines for the conducting of General and Trustee meetings during Level 3 lockdown.

This CSOS FAQ document is not a Practice Directive, but it deals with and answers a lot of important questions asked by members of Community Schemes.

The CSOS addresses a few interesting questions in this document, amongst others:

• Who appoints the Managing Agent and the employees of a Body Corporate?
• Can the Trustees lodge an application for dispute resolution with the CSOS if a summons has already been issued against a levy defaulter?
• Must a Managing Agent have a Fidelity Fund Certificate?
• Must an owner first waive a meeting before a Skype / Zoom / Microsoft Teams meeting can take place?
• What will happen if the Community Scheme does not want to register with CSOS?
• Can the person who is involved in the or preparation of the monthly financial report audit the financial statements?
• In levy collections and arrears, does the CSOS have monetary jurisdiction?

It is important to note that this FAQ document was issued by CSOS and does not necessarily reflect the views and/or opinions of STS or any of its employees.