25/11/2025
Disputes in Community Schemes – CSOS or High Court
by Sloan Wilson
For some time there has been uncertainty regarding the question of whether or not all disputes in community schemes (sectional title schemes and homeowners association schemes) which cannot be resolved internally, had to first be referred to the Community Schemes Ombud Service (CSOS) before the parties could approach the High Court. In other words, did the provisions of the Community Schemes Ombud Service Act (the Act) oust the jurisdiction of the High Court in respect of disputes arising in community schemes.
In a number of cases, where disputes were taken to the High Court before first referring the dispute to the CSOS, the Courts (effectively) held that the High Court should refuse to hear matters (disputes) that fall within the provisions of the Act other than in “exceptional circumstances”. This resulted in the belief (amongst persons involved in community schemes, including, bodies corporate, homeowners associations, owners, managing agents and attorneys) that, generally, all unresolved disputes in community schemes had to first be referred to the CSOS. Only if the dispute was not satisfactorily resolved by the CSOS could the parties to the dispute then, under certain circumstances, approach the High Court.
In a recent Court Case, Parch Properties versus Summervale Lifestyle Estate Owners Association (171/2024[2025]ZASCA155), the Judgement delivered by the Supreme Court of Appeal (SCA) on 17 October 2025 clarified the legal position.
The SCA ruled that the fact that the CSOS provides parties involved in disputes in community schemes with a dispute resolution mechanism, does not mean that such parties are compelled to first approach the CSOS before they can take action in the High Court.
This, effectively, means that the SCA has ruled that the CSOS provides disputing parties in community schemes with an alternative (and not an exclusive) dispute resolution process, and such parties are accordingly free to choose whether they wish to refer the dispute to the CSOS or whether they would prefer to resolve the dispute through taking action in the High Court.
The SCA’s decision is binding on all High Courts in South Africa. The previous uncertainty regarding the jurisdiction of the High Courts in respect of disputes of the nature discussed in this article has accordingly been removed, and parties to such disputes now have a clear right to institute action in the High Court and are not compelled to first refer the dispute to the CSOS before doing so.
Both options available to disputing parties have advantages and disadvantages and the decision on which forum to approach should be determined by factors such as urgency, complexity and financial considerations. Parties should consider taking expert legal advice before making a decision on which forum to choose.
https://wilsonmcwilliams.co.za/disputes-in-community-schemes-csos-or-high-court/
(Disclaimer: This article is for information purposes only and do not constitute legal or other professional advice)