Sectional title corner – Can I go to prison for not registering with CSOS?
Hi there, I’m a trustee and the other trustees in my complex are refusing to register with the Community Schemes Ombud Service (CSOS). What are the fines/consequences of schemes/complexes refusing to register with the CSOS? – David
Hi David, the CSOS Act states the following, which applies to the trustees:
Offences and penalties
- (1) Any person who –
(a) fails to provide access to any books, accounts, documents or assets when required to do so under this Act;
(b) fails to comply with a directive issued under this Act;
(c) fails or refuses to give data or information, or gives false or misleading data or information when required to give information under this Act;
(d) intentionally refuses to perform a duty or obstructs any person in the exercise of a power or performance of a duty in terms of this Act;
(e) accepts any unauthorised fees or reward, either directly or indirectly as a result of a person’s position with the Service;
(f) uses the name, logo or design of the Service without authority;
(g) contravenes or fails to comply with section 31; or
(h) fails to comply with section 11(1), (2) and (3),
is guilty of an offence, and is liable, on conviction, to a fine or imprisonment for a period not exceeding five years or to both a fine and such imprisonment.
(2) Where a person is convicted for a second or subsequent conviction for an offence contemplated in subsection (1), he or she is liable to a fine or imprisonment for a period not exceeding ten years or to both a fine and such imprisonment.
Ed note: Sectional title schemes were given 30 days to register at CSOS from date of publication of the regulations (7 October, 2016). This applied to all community schemes such as a sectional title scheme, a share block company, and a home or property owner’s association. The required form to register the scheme, CS1, is attached to the Regulations. Trustees who refuse to register their schemes would be well advised to rethink their position.
Got a burning question? Email firstname.lastname@example.org 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.