Understanding community schemes: What every owner should know
22 September 2026 | Nicole Tavares
The Community Schemes Ombud Services (“CSOS”) recently hosted the Sectional Title Information for New Entrants into Sectional Title Living webinar aimed at helping those new to the industry understand what they’re signing up for when they buy into a community scheme. This article will cover some key take aways from the session.
If you:
own a sectional title unit;
live in a homeowners’ association, and
looking to buy into a scheme or Homeowners Association ('“HOA”)
you’re part of what is referred to as a “community scheme”. The term community scheme further includes sectional title developments, homeowners’ and property owners’ associations, retirement villages, share blocks and housing cooperatives.
While these schemes can differ in how they’re structured and managed, they all involve a similar basic arrangement, you own, or use your own property, while sharing the costs and responsibilities of everything around it. Examples of shared spaces are roads, gardens, pools, lifts, security and perimeter infrastructure.
When it works as it should, a community scheme gives you access to security, shared maintenance and amenities that would often be difficult or expensive to provide on your own. However, when it doesn’t, it can become a source of ongoing disputes and frustration.
Working or not, comes down to two things:
1. How the scheme is governed, and
2. How the scheme's money is managed.
Who runs a community scheme?
Owners elect trustees or directors to manage the scheme day to day. Many schemes bring in a managing agent to help with the administration, struggling schemes sometimes appoint an Executive Managing Agent, which is a step up in authority reserved for cases where the ordinary structure isn't coping.
It's worth being clear about the hierarchy here. Owners (also known as members) are the ultimate decision-making authority, exercised through general meetings. Trustees or directors manage the scheme within the powers members give them. A managing agent is a service provider carrying out that administration, not the decision-maker. Certain decisions still require an Annual (or special) General Meeting (“AGM”).
Sectional title schemes owners rights and responsibilities
As an owner, you can attend and vote at meetings, see the scheme's financial records, raise concerns formally, and ask for documentation you're entitled to under the Sectional Title Schemes Management Act 8 of 2011 (“STSMA”).
In return, owners are expected to:
pay contributions (levies);
adhere to the management and conduct rules;
maintain their section;
Request approval before altering anything that touches common property or affects your neighbours, and
generally not be a nuisance to others in the scheme.
What to investigate prior to purchase?
Contributions fund security, maintenance, insurance, utilities, the reserve fund and the scheme's 10-year maintenance, repair and replacement plan. Before you sign anything, it's worth asking:
What are the current contributions?
On average how much does the contributions increase annually?
Is the reserve fund healthy, or just present on paper?
Is there currently a special contribution, or is it likely that one will come into effect soon?
Are there structural or major maintenance issues brewing?
Does the scheme currently have any active dispute resolution matters?
Are there any serious arrears, and what's actually being done to recover them?
A copy of the audited financial statements.
A copy of the CSOS approved conduct rules to determine if the rules suit how you actually want to live.
What is the role of CSOS when issues arise?
The CSOS assists with settling disputes that arise in scheme living, such as arrear contributions, noise and conduct complaints, pets, parking, unauthorised alterations, and governance disputes between owners, trustees and/or the managing agent.
CSOS is responsible for three things:
resolving disputes,
supporting good governance, and
running education and training for the sector.
What do owners often get wrong?
While tenants and occupiers can lodge some disputes at the CSOS, their standing is far more narrow than that of an owner. Fines for rule breaches are raised against the owner, regardless of whether there is a tenant causing the breach.
The responsibility for due diligence before a purchase sits mainly with the purchaser, and as such, the purchaser must understand that they can't simply convert common property into an exclusive use area by asking CSOS to grant it, its examples like this require the proper process through the scheme's CSOS approved rules.
A scheme can legally run itself through elected trustees without an outside managing agent, but that only works with trustees who know what they're doing and proper financial controls in place.
The bottom line | An informed owner is a protected owner
Before you buy, understand the rules, the contributions, the finances, the reserve fund, the arrears position and any looming maintenance costs. Once you own, stay engaged, go to meetings, vote, ask questions, pay on time, and raise problems early rather than letting them fester. Good governance and informed owners protect both the community and the value of what you own.
If you would like some more information on the above, reach out to us at info@tvdmconsultants.com or call 061 536 3138.
About the Author:
Nicole Tavares is a Co-Founder and Director of TVDM Consultants.