CSOS Disputes Explained: Resolving Levy and Governance Conflicts

Since its establishment under the Community Schemes Ombud Service Act, CSOS has become the primary forum for resolving disputes in sectional title schemes and homeowners associations – a faster, cheaper alternative to the courts.

What CSOS Can and Can't Do

CSOS adjudicates disputes relating to community scheme governance, including:

Financial issues – unpaid levies, disputed special levies, and reserve fund contributions
Behavioural issues – nuisance, conduct rule breaches, and use of common property
Governance disputes – trustee conduct, meeting procedure, and access to scheme documents
Works and improvements – disputes about maintenance obligations or unauthorised alterations

CSOS does not replace the body corporate's own dispute resolution mechanisms – internal rules on conduct and arrears should still be followed first where practical, and CSOS is often best used once internal avenues are exhausted.

The Application Process

Lodge the Application

Complete the prescribed CSOS application form (Form 2) and pay the applicable fee, which is scaled to the value of the dispute or waived for qualifying applicants.

Conciliation

A CSOS conciliator will first attempt to help the parties reach a voluntary agreement.

Adjudication

If conciliation fails, the matter proceeds to adjudication, where an adjudicator considers written submissions and issues a formal order.

Compliance or Appeal

A CSOS order is binding and enforceable as if it were a court order. Either party may appeal to the High Court on a point of law within the prescribed period.

Common Grounds for Levy Disputes

Frequent Levy-Related Applications

Disputes over whether a special levy was validly raised
Challenges to how arrears interest or collection costs were calculated
Requests for payment arrangements where an owner disputes the underlying debt
Disputes about levy increases not properly approved at an AGM

How Managing Agents Reduce CSOS Exposure

Most CSOS disputes are preventable with clean administration: properly minuted resolutions, transparent financial statements, and consistent, well-documented collections processes. A managing agent who keeps meticulous records gives the body corporate a strong evidentiary position if a dispute does reach adjudication.

Prevention Beats Adjudication

CSOS is a valuable safety net, but no body corporate wants to rely on it regularly. Sound governance and transparent financial administration are the real first line of defence against disputes.

Facing a Dispute – or Want to Avoid One?

PPSP supports trustees through CSOS applications and, more importantly, builds the administrative discipline that prevents disputes in the first place.

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