Landmark ruling lets homeowners take scheme disputes to court

• SCA confirms homeowners may bypass CSOS and go straight to court.
• Summervale and Landsmeer rulings strengthen fairness and owner rights.
• Decision ends years of uncertainty and restores full High Court access.

Landmark win for Homeowners after SCA confirms wider access to the courts

‍A major Supreme Court of Appeal (SCA) ruling has reshaped the legal landscape for community schemes. Homeowners, bodies corporate and HOAs may now bypass the Community Schemes Ombud Service (CSOS) and take disputes directly to court ending years of confusion and restrictive interpretations.

This follows the recent Summervale Lifestyle Estate case, which the SCA used to clarify that the High Court’s jurisdiction remains fully intact. CSOS remains a valuable dispute-resolution platform, but it is no longer a mandatory first stop.

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“This decision is critical for parties facing complex or high-value matters,” says Johlene Wasserman, Director of Community Schemes & Compliance at VDM Incorporated. “It empowers homeowners and bodies corporate to choose the forum that best suits their circumstances, without procedural hurdles.”

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The Summervale Case: A Turning Point

Summervale Lifestyle Estate is an over-50s retirement village in Gordon’s Bay. A neighbouring landowner, Parch Properties 72, sought to incorporate several adjacent cottages into the estate by amending the HOA’s constitution.

Many residents opposed the plan, known as the “Venter group”- warning it would alter the character of the retirement estate, open the door to younger tenants, and compromise fairness and property rights.

Despite resistance, the HOA attempted to change its constitution twice. When these efforts failed, Parch bypassed CSOS and went straight to court seeking a declaratory order.

The court ruling:

• Refused Parch’s bid to include the cottages in Summervale
• Found the residents’ refusal to amend the constitution reasonable and justified
• Ordered Parch to pay legal costs

Most importantly, the case became the vehicle for the SCA to confirm that litigants may approach the High Court without proving “exceptional circumstances” overturning previous restrictive interpretations.

The Landsmeer Judgment: Majority power has limits

‍Another influential case came from the Landsmeer HOA, where the developer amended the Memorandum of Incorporation (MOI) to exempt themselves, the majority vote-holder from paying levies for an extended period.

The minority of homeowners challenged the decision in the Gauteng High Court. The judge ruled that the special resolution was:

• Oppressive,
• Unfairly prejudicial, and
• An abuse of majority voting power.

The MOI was ordered to be amended, and the developer was compelled to pay costs.

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“This judgment sends a clear message,” says Wasserman. “Majority voting power cannot be used to escape financial obligations. Section 163 of the Companies Act remains a powerful shield protecting ordinary members.”

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CSOS or Court? The choice is now yours

‍CSOS still plays a vital role. For everyday disputes, levies, trustees’ conduct, AGM issues, maintenance failures, enforcement of rules,  CSOS remains an affordable and accessible forum. Its orders carry the same legal force as court judgments.

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But, as Wasserman notes: “The SCA has now confirmed that the High Court’s inherent jurisdiction was never removed. Nothing in the CSOS Act limits the High Court from hearing community scheme disputes. Litigants may choose CSOS or court depending on strategy, cost and urgency.”

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The ruling effectively overturns the restrictive Heathrow line of cases and restores national uniformity in how community-scheme disputes may proceed.

Landmark victory

‍The SCA’s decision marks a landmark victory for homeowners and community schemes nationwide. Complex, high-stakes or constitutionally sensitive matters no longer need to wind their way through an overburdened CSOS system first. The High Court is fully open, without preconditions.

At the same time, CSOS retains its place as the first stop for everyday community-scheme conflict offering affordable, binding resolutions.

The new legal clarity delivers what owners, trustees and HOAs have long needed: certainty, fairness, and genuine choice.

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