Sectional title corner – What’s the new Ombud levy?
Hi there, I heard there is another levy we will soon have to pay that has to do with a new Ombudsman? – Paul
Hi Paul, yes this is true; there is a new Ombud that has been established for all community schemes (including sectional title schemes, homeowners associations, shareblock schemes etc).
The Community Schemes Ombud Service (CSOS) Act was published back in 2011 but could not come into force before the Regulations to the act had been finalised and published. This will happen on Friday (7 October 2016).
The act requires all community schemes to register with the service and all scheme unit owners to pay a CSOS levy. This will be calculated by taking your unit’s monthly levy, deducting R500 and then calculating 2% of this amount (a maximum of R40 per unit per month).
This levy will be used to finance the Ombud service that will basically provide a cheap, quick solution for dispute resolution and that will keep records of all schemes’ governance documents.
Each unit owner will have to pay the levy and will be raised as a separate line item on their monthly levy accounts.
The levies have to be raised starting 1 January 2017 and paid over to CSOS on a quarterly basis.
How to calculate your CSOS levy
Current levy = R1,000 per month
Subtract R500 (R1,000 – R500)
Multiply by 2% (R500 x 0.02)
Got a burning question? Email email@example.com and we’ll be sure to assist you.
Who is Karien Coetzee?
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.