Pearl Scheltema – CEO of Fitzanne Estates and Dilen Heerschop – attorney at Heerschop Pienaar Incorporated Attorneys (image credit propertyprofessional.co.za)
The Community Schemes Ombud Service (CSOS) has issued a landmark update that is set to redefine governance across South Africa’s community schemes. Published on 18 July 2025, the Consolidated Practice Directive 1 of 2025 replaces all previous circulars and guidelines, creating a unified framework for managing sectional title schemes, homeowners’ associations (HOAs), retirement housing, and other shared living environments.
This directive introduces a more structured compliance model, shifting away from fragmented interpretations toward enforceable standards. It mandates that all schemes register via the CSOS Connect platform within 30 days of establishment, a timeline that may challenge developers aligning inaugural AGMs with registration deadlines.
Among the most impactful changes is the formal identification of “undesirable rules”—those deemed unconstitutional, discriminatory, or contrary to public policy. These include bans on pets based on species, estate agent monopolies, and restrictions on domestic workers. Such rules now lack legal standing and may be struck down during CSOS’s quality assurance process or through dispute resolution.
The directive also tightens the regulation of fines and penalties. Trustees must now follow due process, including written warnings and internal dispute mechanisms, before imposing any financial sanctions. Arbitrary or open-ended fines are explicitly prohibited.
Administrative obligations have expanded as well. Schemes must register governance documentation with CSOS, comply with the Protection of Personal Information Act (POPIA), and appoint an Information Officer. Non-compliance may result in administrative penalties or escalation to the National Prosecuting Authority.
Industry leaders, including Pearl Scheltema of Fitzanne Estates and attorney Dilen Heerschop, have welcomed the directive’s clarity and accountability. They urge schemes to seek professional guidance to align governance rules with the new standards and avoid legal pitfalls.
This directive marks a pivotal moment for property governance in South Africa, reinforcing transparency, protecting residents’ rights, and ensuring that community schemes operate within a constitutionally sound framework.