Property glossary
Community scheme
Also known as: scheme
Any development where owners share use of land and buildings under common rules, including sectional title schemes, HOAs, share blocks and retirement schemes.
Definition
A community scheme is any arrangement in which there is shared use of, and responsibility for, land and buildings, governed by a common set of rules and a body that manages the common parts. It is an umbrella term that covers sectional title schemes, homeowners associations (HOAs), share block companies, retirement housing schemes and housing co-operatives. Each scheme has owners who pay levies or contributions toward the upkeep of shared property and is run by a governing body such as a body corporate or HOA committee.
In the South African context
The Community Schemes Ombud Service Act (Act 9 of 2011) defines a community scheme broadly and brings all such schemes under the oversight of the Community Schemes Ombud Service (CSOS). This means every qualifying scheme must register with CSOS, file its governance documents, and pay CSOS levies, regardless of whether it is a sectional title scheme or an HOA. The Act also gives CSOS a dispute-resolution mandate over conduct, finances and governance within these schemes.
Example
A 40-unit sectional title block, a gated HOA estate of freehold homes, and a retirement village all qualify as community schemes and must each register with CSOS and lodge their rules.
Why it matters
The classification determines which laws apply, whether a scheme must register with CSOS and pay CSOS levies, and how disputes between owners and the scheme are resolved.
Informational only — not legal advice. Confirm specifics against the current Act and your scheme’s rules.
Sources
- CSOS Act — Community Schemes Ombud Service Act 9 of 2011 — defines community scheme and brings schemes under CSOS oversight