Understanding the CSOS Levy: A Guide by Solver Property Services
If you own property within a community scheme in South Africa, such as a sectional title development or a homeowners association (HOA), you may have encountered the term "CSOS levy." But what exactly is this levy, and why is it important? Solver Property Services, your trusted community scheme specialists and managing agents, is here to explain everything you need to know about the CSOS levy and how it benefits you as an owner.
What is the CSOS?
The Community Scheme Ombud Service (CSOS) is a public entity established by the Community Schemes Ombud Service Act No. 9 of 2011. Officially launched on 7 October 2016, the CSOS operates under the Ministry of Human Settlements. Its primary goal is to promote harmonious living within community schemes by offering an affordable, accessible dispute resolution service and overseeing good governance practices.
The Role of the CSOS
Community schemes often bring diverse individuals together, which can sometimes result in disputes over governance, finances, or acceptable behaviour. The CSOS plays a vital role in resolving these conflicts and ensuring that community schemes operate smoothly. Its key responsibilities include:
- Resolving disputes between owners, occupiers, and scheme executives.
- Regulating and monitoring sectional title governance documentation.
- Maintaining public access to community scheme governance records.
- Promoting good governance through education and resources for stakeholders.
- Offering training and guidance for property managers, trustees, and owners.
By addressing these aspects, the CSOS contributes to the sustainability and efficiency of community living.
What is the CSOS Levy?
The CSOS levy is a mandatory contribution collected by community schemes from individual owners and remitted to the CSOS quarterly. It ensures the CSOS has the necessary resources to carry out its functions. Here's how it works:
- Calculation: The CSOS levy is the lesser of R40.00 or 2% of the amount by which an owner's monthly scheme levy exceeds R500.00. For example, if your monthly scheme levy is R800, your CSOS levy would be R6.00 (2% of R300).
- Payment: Community schemes pay the collected levies to the CSOS quarterly, using their CSOS registration number as a reference.
Why is the CSOS Levy Important?
The CSOS levy enables the CSOS to deliver essential services that benefit all owners in a community scheme, such as:
- Affordable dispute resolution services, eliminating the need for costly legal processes.
- Oversight of governance practices to maintain transparency and accountability.
- Access to governance documents, helping owners understand their rights and responsibilities.
- Educational initiatives to empower owners, trustees, and managing agents.
These services are crucial for fostering harmonious and well-managed community living.
Consequences of Non-Payment
Failure to pay the CSOS levy can have serious consequences. Under Section 34(1)(b) of the CSOS Act, non-payment is a criminal offence and may result in:
- Financial penalties, including 2% interest per month on overdue levies.
- Potential legal action by the CSOS to recover outstanding amounts.
At Solver Property Services, part of our service offerings include ensuring that our clients remain compliant by managing levy payments efficiently and providing guidance to owners about their obligations.
Partnering with Solver Property Services
As sectional title and homeowners association specialists, Solver Property Services is dedicated to enhancing the lives of those living in community schemes. Our expertise as property managers and community scheme specialists means we're always here to guide you, whether you need help understanding your CSOS levy or addressing broader community management issues.
We are proud to have 20+ years of experience and provide a world-class service to our clients. We are also continuously aiming to keep our clients informed and empowered to make the best decisions for their community. If you have questions about the CSOS levy or need support with your community scheme, don't hesitate to reach out to Solver Property Services.
Conclusion
The CSOS levy is more than just another line item on your monthly statement; it's a contribution toward a better-managed, harmonious community. By understanding its purpose and value, you can appreciate the essential role it plays in maintaining the integrity and functionality of your community scheme. Solver Property Services is here to help you navigate these responsibilities and make the most of your investment in community living.
Disclaimer: The information provided in this article is intended for general informational purposes only. It does not constitute comprehensive guidance, legal advice, or assistance in fulfilling the fiduciary responsibilities of community schemes.
Solver Property Services is proud to be one of South Africa's leading property managing agents, successfully serving community schemes since 2005. From high-rise sectional title buildings and homeowners associations to share blocks and apartment complexes, we manage them all with expertise and care. For more information, contact us at 010 822 2882. Our dedicated team of experienced Property Managers and Managing Agents is ready to assist you