COMMUNITY SCHEMES OMBUD SERVICE ACT 9 OF 2011
 

TO ALL EXTENDED BUSINESS PARTNERS

Number

05/2016

The Community Schemes Ombud Service Act, 9 of 2011, (OSA) and the Sectional Title Schemes Management Act, 8 of 2011, (SMA) will be put into operation during the course of this year.
 
The OSA makes specific provision for the establishment of an ombud service to function as a dispute resolutions mechanism for sectional title schemes, as well as duties relating to the substitution, adding, amending or repealing rules of the scheme.
 
The new proposed regulations to the OSA will also provide for the following:
 
  • An additional levy, over and above the normal levy to fund the operational infrastructure of the new ombud service, payable on a sliding scale between R3,40 per month and R68,00;
  • Bodies Corporate will have to take out insurance against the risk of loss of money belonging to the community scheme, or for which it is responsible due to fraud or dishonesty, which will have to be funded by the sectional title owners;
  • Bodies Corporate must also have a reserve fund amounting to 25 per cent of the administration costs.
  • Bodies Corporate will have to institute a five year maintenance plan.    
 
We await the coming into operation with abated breath.


For any queries please contact our property law division at the details below:

Allen Stanley West
Tel: 012 425 3549
awest@macrobert.co.za

Daleen Loubser
Tel: 012 425 3489
dloubser@macrobert.co.za

Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein