What you need to know about the new rules for estates and complexes in South Africa
A property expert says the new directive from the Community Schemes Ombud Service (CSOS) is a much-needed step to tackle unfair rules in South Africa’s estates and complexes.
The directive was signed and published on 18 July 2025, and sets the standard for how these schemes address things like pets, fines and domestic workers.
According to Johlene Wasserman, Director of Community Schemes and Compliance at VDM Law, the CSOS Practice Directive supersedes all previous documents and now serves as a single reference source for trustees, managing agents, and other stakeholders.
Wasserman is a former employee of both CSOS and the Property Practitioners Regulatory Authority (PPRA).
According to Wasserman, one of the most critical changes is the identification of “undesirable rules” within community schemes.
These are rules that CSOS deems unconstitutional or discriminatory and therefore have no legal standing.
Grant Smee, CEO of Only Realty Property Group, explained that the new directive outlines undesirable rules, which the CSOS feels impact owners and tenants.
They include rules that may be unfair and are unilaterally put in place by trustees or managing agents, which affect their rights.
He added that these rules can limit freedom of use of a property or place unnecessary financial burdens on residents through fines.
According to Smee, the directive was introduced to provide clarity and guidance on what are undesirable rules and what aren’t after years of disputes during adjudications.
Examples include restrictions on domestic workers, compulsory private arbitration, and blanket bans on pets.
“Because it was previously a relatively unregulated environment, you had lots of rules that were put in place by trustees who are either power hungry or overreaching in terms of their powers,” he said.
Smee stressed that these rules often went against constitutional rights and basic fairness. “I think it’s really a balance between the two, but just providing that real direct clarity and that one source of truth for people to refer to,” he said.
While the directive itself is not a new law, it is designed to guide adjudicators and give residents stronger grounds to challenge unfair rules.
Good news for homeowners in estates and complexes
When asked how enforceable the directive is, Smee said that the CSOS does have the power at this stage to strike down unfair rules, although it may need to be escalated for court hearings and cases, which will then obviously provide us with the final clarity.
He noted that the CSOS has had a really positive impact across the board and that adjudicators have generally delivered fair outcomes, even if not perfectly so.
For trustees and managing agents, the consequences of non-compliance are also now far more serious.
Smee explained that the Act does have them take on personal liability for decisions relating to a complex, adding that penalties and even potential prison time are in place as deterrents.
While nobody is going to jail for simply owning a pet, Smee warned that repeated contraventions could expose trustees to real risks if they fail to take their roles seriously.
One of the biggest flashpoints in complexes has been excessive fines. Smee believes the directive will give owners who feel unfairly treated a practical way to fight back.
“If you do want to fight a rule, do a CSOS complaint. It’s free via CSOS on their website, and then they would go through the process,” he advised. “It gives you real clarity to stand on.”
For prospective buyers, Smee urged thorough due diligence before committing to a property in a complex.
“Due diligence is the most key step to acquiring that property because the costs beyond ownership, if you don’t do your due diligence, can be extortionate,” he said.
Buyers should request scheme documents such as management rules, levy schedules, special levy history, AGM minutes, insurance valuations, and the 10-year maintenance plan.
“People are being bitten so badly by buying into complexes that are poorly managed, poorly run, and non-compliant, and it costs them hundreds of thousands of rands over time if they don’t do that properly,” he warned.
Smee believes that proper enforcement of the directive will strengthen, rather than weaken, property values in estates and complexes.
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