Alternative Dispute Resolution in Sectional Title Schemes: Practical Solutions Beyond Litigation

Category: Property Law  

Introduction 

Disputes in sectional title schemes are almost inevitable. With multiple owners living in close proximity and sharing financial, administrative, and behavioural responsibilities, conflict can arise over levies, maintenance, rule enforcement, trustee decisions, or the use of common property. Traditionally, litigation was the default method of resolving disputes. However, going to court is costly, slow, and often destructive to community relationships.

South African law recognises these challenges and encourages Alternative Dispute Resolution (“ADR”) as a more efficient, less adversarial way to resolve sectional title conflicts. Today, wellstructured ADR mechanisms, particularly the Community Schemes Ombud Service (“CSOS”) offer practical, accessible remedies that avoid the financial and emotional toll of court proceedings.

This article explores the key ADR pathways available to residents, trustees, and managing agents, and explains when each may be appropriate.

Why Litigation should be the last resort 

While there are situations where court action is unavoidable, litigation should generally be used only as a last resort. 

Here’s why:

• It’s expensive: Legal fees add up quickly.
• It takes time: Court processes can drag on for months or years.
• It’s adversarial: A winlose approach can damage relationships between neighbours.
• It’s rigid: Courts can’t always craft creative or practical solutions.

Community living thrives on cooperation, which is why ADR often delivers far better outcomes.

Start with Internal Resolution

Before involving third parties, schemes should always attempt to solve problems internally. The aggrieved party can talk directly to the person involved. The issues can also be raised with the trustees. The managing agent can be asked for assistance. The issues can also be discussed at the trustees’ or owners’ meetings.  Many issues stem from misunderstandings and can be resolved quickly with clear communication at no cost and no paperwork.

Mediation: A Calm, Collaborative Conversation

If talking things through doesn’t work, mediation is an excellent next step. Mediation involves a neutral third party that facilitates confidential negotiations between parties with the aim of finding solutions that work for everyone.  Unlike court, mediation is flexible and relationship-friendly. It’s ideal for disputes about noise, conduct rules, pets, parking, or neighbour-to-neighbour conflict.

CSOS: The Primary Dispute Resolution Route for Sectional Title Schemes

The Community Schemes Ombud Service (“CSOS”) was established in terms of the Community Schemes Ombud Service Act 9 of 2011 to help resolve disputes in sectional title schemes without going to court. It offers a lowcost, userfriendly process that has become the goto solution for most community scheme issues. Section 38 of the CSOS Act allows any person who is materially affected by a dispute to make an application to the CSOS. The application must include statements setting out the relief sought, the name and address of each person the applicant considers materially affected and the grounds on which the relief is sought. 

Section 39 of the CSOS Act sets out the relief or orders of which one or more must be included in the application in terms of Section 38. These include orders, in respect of: 

• Financial issues
• Behavioural issues 
• Scheme governance issues 
• Meetings 
• Management services 
• Works pertaining to private areas and common areas 
• General or other issues 

CSOS offers two key processes:

Conciliation:  Similar to mediation, conciliation allows parties to work together with the help of a CSOS conciliator

Adjudication: If conciliation fails, an adjudicator will issue a legally binding order—just like a Magistrates’ Court order, but far quicker and more affordable.

For many schemes, CSOS is the most practical route to a binding decision without the cost and stress of litigation.

Arbitration: A Private, Binding Alternative

Some schemes include arbitration clauses in their rules. Arbitration is more formal than mediation but still avoids the lengthy delays of litigation. A private arbitrator acts like a private judge, the process is confidential and the final decision is enforceable. Timeframes can be tailored to the parties’ needs. Arbitration is especially useful for technical disputes or matters requiring specialist knowledge.

Expert Guidance: Sometimes Clarity Solves the Problem

Not all disagreements require a formal process. Many disputes arise simply because owners or trustees are unsure of the law, the rules, or their responsibilities. Professional legal advice or expert input can quickly clarify maintenance obligations, interpret the STSMA or rules, or assess whether a decision is valid, thereby preventing escalation. Often, an informed opinion is enough to resolve a dispute on the spot.

Conclusion 

Sectional title living is about community—and preserving that community should be a priority. While litigation has its place, it is rarely the best option. By using ADR methods such as internal negotiation, mediation, CSOS processes, arbitration, and expert advice, sectional title schemes can resolve disputes faster, more affordably, and with far less conflict. If your scheme is struggling with a dispute, there are many effective options available long before litigation becomes necessary.

Contact us for assistance today!

https://schoemanlaw.co.za/services/property-law

Janet Mc Intosh | SchoemanLaw Inc 
Attorney: Civil and Commercial Litigation