The Community Scheme Ombud Service Act, No. 9 of 2011 (“the Act”) will come into force on a date to be fixed by the President by proclamation in the Gazette.

In terms of the Act the term “community schemes” includes:

1. Sectional titles development schemes in terms of the Sectional Titles Act (Act 95 of 1986);
2. Share block companies governed by the Share Blocks Control Act (Act 59 of 1980) and the Companies Act (Act 61 of 1973), soon to be replaced by Act 71 of 2008;
3. Home or property owner’s associations, whether constituted as companies under the Companies Act  or as common law associations, established to administer property developments;
4. Housing schemes for retired persons in terms of the Housing Developments for Retired Persons Act (Act 65 of 1988), and
5. Housing co-operatives under the South African Co-operatives Act, 2005 (Act 14 of 2005)

as well as any other scheme or arrangement in terms of which there is shared use of and responsibility for parts of land and buildings.

This Act is a very significant development in the South African law applicable to the administration of real property in that it recognises a wide range of different legal arrangements currently used to provide urban housing and shared facilities as being part of a new legal class, the “community scheme”.

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