The most common issue in community scheme management is a member’s failure to pay a contribution. An association may also become liable to re-pay an owner a contribution wrongly collected.
There are also a range of other circumstances in which persons who have a material interest in a scheme may owe one another an amount of money.
The wording of this type of order is very wide, allowing the CSOS to order the payment of money due for any reason whatsoever.
In terms of section 39 (1) (e) of the CSOS Act, an application may be for:
“an order for the payment or re-payment of a contribution or any other amount”
An owner may admit her or his liability to pay the association a contribution or any other amount, but just be unable to pay because she or he has no funds.
An owner may believe that the association has incorrectly required payment of a contribution that is not due in law and require that it be repaid to her or him.
Money debts may also arise for a range of other reasons. For example, the scheme executives may impose a financial penalty on an owner or occupier for some breach of the scheme governance documentation and need to recover it.
A member may pay a penalty imposed and then become aware that the scheme executives did not follow due process in imposing that penalty and require that it be re-paid.
In all of these cases the association or other person claiming the money needs to have the validity of the debt confirmed and have the CSOS order the debtor to pay it.
An example of the type of order the CSOS could give is:
That Abraham Kenno must with in ten days of the date of this order pay to the Middelsburgh Hills Home Owners Association the sum of R 27 756,00 plus interest thereon at the rate of 20% per annum as from 20 March 2017 to date of payment. This order takes effect immediately.
If you would like to see the whole of the Community Schemes Ombud Service Act, 9 of 2011, including the full text of chapter 3 that covers applications, you can access this from Paddocks’ resource library.
Do you have concerns about your matter, need assistance completing your application, or want a sectional title Consultant to review your application before submission? Have a look at the Paddocks’ Consulting page.
For general help on the CSOS, including the special meanings of the words and phrases “association”, “common area”, “dispute”, “executive committee”, “owner”, and “scheme governance documentation” see the CSOS Information page.
Needing other assistance? Have a look at our Paddocks assistance page, which includes the helpful application guide explanation, for more information.
Would you like to make an application for this type of order?
If this is the correct order for your issue, the next step would be to make an application.
You can capture your application information online here – with or without an example suggested wording.
Alternatively, you can download a blank copy of official CSOS Application for Dispute Resolution Form to complete offline at a later stage.
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