For many South Africans living in estates or sectional title schemes (community schemes), fines have become part of everyday life. A penalty for speeding, a charge for parking, a debit on your levy statement for conduct you may not even have known was an issue. Most people pay these fines without question. The approach is, however, no longer justified.

The New Standard for Fines 
On 18 July 2025, the Community Schemes Ombud Service (CSOS) brought into effect Consolidated Practice Directive 1 of 2025, which applies to all community schemes, homeowners’ associations, sectional title bodies corporate, and similar developments. The directive introduces, among other measures, a structured framework that community schemes are obliged to follow before imposing fines or other penalties on homeowners: 

1. First, whenever there has been a transgression of the scheme rules, the offending homeowner must first be issued a written warning notice setting out the alleged breach and giving the homeowner a reasonable opportunity to respond or correct the issue. This is a mandatory precursor to the imposition of a fine or penalty. 

2. Second, the practice of immediate or “on-the-spot” fines is no longer permissible. A fine cannot simply appear on a homeowner’s levy account without prior engagement. If it does, the validity of that fine can be challenged. 

3. Third, penalties are now subject to a strict monetary cap: they may not exceed the monthly levy applicable to the unit or property, and must, in all instances, be reasonable and proportionate to the nature and severity of the alleged transgression.

4. Finally, there must be a fair internal process prior to the imposition of fines or penalties. Community schemes, trustees or managing agents, as the case may be, cannot unilaterally decide that a breach occurred and impose a sanction without allowing the affected homeowner a proper opportunity to be heard.

While the directive is new, the legal principle is not. South African law has long required administrative decisions (like the decision to impose a fine) to be procedurally fair, as reflected in the Promotion of Administrative Justice Act 3 of 2000. What the CSOS-directive does is translate that principle into a concrete standard within community schemes. In essence, it removes any ambiguity and curtails the arbitrary imposition of penalties.

Community schemes, trustees, and managing agents who fail to comply with these requirements run the risk of their decisions being challenged and set aside, which may, in certain circumstances, attract an adverse costs order. This has already prompted many community schemes to revisit and amend their conduct rules. However, not all schemes have caught up, and many continue to apply outdated or unlawful practices.

What to Do if You Have Been Fined 
If you have been fined, the starting point is not whether the rule exists, but whether due process was followed. Ask yourself the following questions:
1. Were you given a written warning before the fine was imposed? 
2. Were you afforded a reasonable opportunity to respond? 
3. Is the amount of the fine proportionate and within the prescribed limit?
 
If the answer to any of these is negative, the fine is open to challenge.
 
Conclusion
Community schemes remain entitled to enforce their rules, but they should do so in a manner that complies with due process. For homeowners, this means you are no longer obliged to accept fines at face value, particularly where they have been imposed without warning or without allowing you the opportunity to be heard. Absent a prior warning, there is no due process, and any resulting penalty is invalid and liable to be set aside. If you find yourself in this position, it is advisable to consult an attorney before taking further steps.

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