If you own property in a sectional title, there are new rules governing how your community can issue fines. The Community Schemes Ombud Service (CSOS) has introduced a new Consolidated Practice Directive 1 of 2025, which provides clearer standards for handling fines and penalties. This Directive applies to all types of community schemes, including sectional title complexes, homeowners' associations, retirement villages, and share-block developments.
Key Changes:
- Written warnings must be issued before fines are imposed, outlining the alleged contravention and giving you an opportunity to respond.
- Fines must be reasonable, proportionate, and supported by the scheme's registered rules.
- Fines cannot exceed the monthly levy of the property, ensuring that schemes do not use fines as a means of generating revenue.
- Schemes must follow a fair and equitable process when imposing fines, which includes providing you with an opportunity to dispute the fine.
Your Rights:
- You have the right to be heard and respond to allegations, ensuring that your side of the story is considered.
- You can dispute fines with the CSOS if you feel unfairly treated or if the fine is not in line with the scheme's rules.
- The Ombud can investigate and overturn fines imposed contrary to the rules, providing an added layer of protection for you.
What to Do:
- Familiarize yourself with the new Directive and understand how it affects your community.
- Review your scheme's rules and procedures to ensure they align with the new Directive.
- Ensure your scheme complies with the new rules to avoid disputes and penalties.
- If you're unsure about any aspect of the Directive or your scheme's rules, seek advice from a legal professional or a property expert.
By understanding the new rules and your rights, you can protect yourself and your community from unfair or excessive fines.
Disclaimer:
The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the views of PropertyTime. This article is intended for informational purposes only and should not be considered as a comprehensive or definitive exposition of the law. Readers should not rely on the content of this article for any purpose and should seek the advice of a qualified legal professional to confirm the accuracy and applicability of the information. The author(s) and PropertyTime disclaim any liability for any prejudice or damage resulting from reliance on the content of this article.
