New CSOS directive bodes changes for Community Scheme Governance

Jani le Roux

11 August 2025

new csos directive bodes changes for community scheme governance

MAIN IMAGE: Pearl Scheltema – CEO ofFitzanne Estates and Dilen Heerschop – attorney atHeerschop Pienaar Incorporated Attorneys

Fitzanne Estates

Pearl Scheltema, CEO of Fitzanne Estates, speaks with Dilen Heerschop, attorney at Heerschop Pienaar Incorporated Attorneys, to unpack the newly released CSOS Consolidated Practice Directive 1 of 2025, a landmark update set to recalibrate the governance of community schemes (sectional titles, HOAs, retirement housing and more).

One enforceable framework

Published on 18 July 2025 by the Community Schemes Ombud Service (CSOS), the directive consolidates all previous circulars, guidelines, and directives into one enforceable framework. This “one-stop” resource eliminates the need to search through scattered CSOS documents, creating a unified standard for managing sectional title schemes, homeowners’ associations, share block companies, housing co-operatives, and retirement housing schemes.

The conversation delves into why this update is a shift from fragmented, interpretive compliance towards accountable governance that aligns with existing laws. From the introduction of the CSOS Connect platform as the formal registration channel to a tiered enforcement model that begins with informal engagement and can escalate to National Prosecuting Authority referrals, the new directive tightens expectations while offering education and support for those committed to compliance.

Scheltema and Heerschop explore the practicalities of compliance, from resolving the widespread issue of incorrect scheme registration numbers to meeting the 30-day registration requirement for new schemes–”a deadline that may clash with the timing of inaugural AGMs in sectional title developments. They also examine the expanded and clarified list of “undesirable rules,” including revisions to how legal fees may be recovered, court-mandated due process for disconnection of services, the banning of estate agent monopolies, and the prohibition of short-term rental platform exclusivity.

New clarifications extend even to niche issues such as regulating the slaughtering of animals within wildlife estates, ensuring constitutional rights are respected while protecting conserved species. “These updates underline the need for all schemes to review and amend their governance rules with professional guidance,” Scheltema notes.

The episode also covers important wins from industry feedback, where bodies like NAMA influenced the removal of CSOS’s proposed power to impose penalties directly, the prevention of CSOS appointing Executive Managing Agents in place of member decisions, and the reinforcement of statutory boundaries between CSOS and the Property Practitioners Regulatory Authority (PPRA).

For trustees, managing agents, and property owners, the message is clear: this directive is both a compliance obligation and an opportunity to strengthen governance, protect rights, and foster transparency within community schemes.

The full episode, A New Era in Community Scheme Governance – The CSOS Consolidated Practice Directive 2025, is available now on iono.fm and major podcast platforms.

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