The Essential Guide for Trustees: Navigating Disputes and Managing Conflict in Community Schemes

Serving as a trustee in a community scheme is a role filled with responsibility, oversight, and a fair share of challenges. While many assume the trustee's role is limited to budgeting and maintenance, conflict management is an equally critical, and often underestimated part of the job.

Whether it's a disagreement between neighbours over noise levels, a resident refusing to pay levies, or tensions arising from decisions made by the trustees, conflict is inevitable in shared living spaces. The key to a well-managed scheme lies not in avoiding disputes entirely, but in understanding how to resolve them effectively, fairly, and legally.

In this article, we explore how trustees can navigate disputes and manage conflict in community schemes with confidence and clarity.

1. Understanding the Nature of Conflict in Community Schemes
   
   Community schemes such as sectional title complexes, estates, and homeowners' associations bring together individuals with diverse lifestyles, priorities, and expectations. It's no surprise that disputes may arise in such close-knit environments.
   
   Common sources of conflict include:
   • Noise complaints
   • Parking disputes
   • Non-payment of levies
   • Unapproved alterations or extensions
   • Misuse of common property
   • Disagreements with trustees' decisions or management agents
   
   These issues, if not handled correctly, can escalate quickly and create a toxic living environment, harm property values, or even result in legal action. That's why a proactive, informed approach from trustees is essential.
    
2. The Role of Trustees in Conflict Management
   
   Trustees are not just custodians of the scheme's finances and physical assets; they are also responsible for maintaining harmony and enforcing the rules in a fair and transparent manner. While it is not the trustee's job to take sides, it is their duty to facilitate communication and ensure that the provisions of the Sectional Titles Schemes Management Act (STSMA) or the Community Schemes Ombud Service Act (CSOS Act) are upheld.
   
   Here are key principles trustees should follow:
   
   1. Be Proactive, Not Reactive
   Trustees should not wait for disputes to erupt. They should establish and communicate clear rules, provide regular updates to owners and residents, and encourage open dialogue during meetings. A well-informed community is less likely to misunderstand rules or decisions.
   
   2. Treat All Parties Fairly
   Impartiality is crucial. Trustees must apply rules consistently and ensure all owners and residents are treated equally - regardless of personal relationships, the length of time someone has lived in the scheme, or their financial status.
   
   3. Maintain Clear Documentation
   Every complaint, warning, or dispute should be recorded in writing. Accurate records provide clarity and protect all parties in the event that legal steps are required. Minutes of meetings, written notices, and formal correspondence serve as a factual history of the issue.
    
3. Effective Strategies for Conflict Resolution
   
   When conflict does arise, trustees can use the following practical strategies to guide resolution:
   
   Step 1: Encourage Direct Communication
   Often, a simple conversation can resolve misunderstandings before they become formal disputes. Encourage residents to speak with each other calmly and respectfully about minor issues before involving trustees.
   
   Step 2: Facilitate Mediation
   If direct communication fails, trustees can act as neutral facilitators to help both parties understand each other's perspectives. Arrange a meeting in a neutral setting, listen actively, and encourage compromise.
   
   Step 3: Enforce the Rules Transparently
   If a resident has clearly breached the scheme's conduct or management rules, it is the trustees' duty to take action. Issue a formal written warning, referencing the specific rule that has been violated. Be firm but respectful in tone, and allow the resident an opportunity to respond.
   
   Step 4: Use the CSOS Process
   When disputes cannot be resolved internally, trustees can escalate the matter to the Community Schemes Ombud Service (CSOS). CSOS provides affordable dispute resolution services, including adjudication and conciliation. Importantly, only matters that have followed the scheme's internal dispute resolution process should be referred to CSOS.
    
4. Common Conflict Scenarios and How to Handle Them
   
   Scenario 1: A Resident Refuses to Pay Levies
   Trustees must act swiftly but legally. First, issue a written reminder with a breakdown of the amount owed and the consequences of continued non-payment. If the account remains unpaid, the matter can be handed over to a legal firm or debt collector, or referred to CSOS if the resident disputes the charges.
   
   Scenario 2: Neighbour Complains About Noise
   Ask the complainant to document the disturbances. If the complaint appears valid, contact the offending resident and inform them of the rule being violated. If the behaviour continues, a written warning should be issued, followed by appropriate sanctions or referral to CSOS if necessary.
   
   Scenario 3: A Trustee Is Accused of Bias
   Maintain a transparent and documented trail of communications and decisions. If tension arises around a trustee's impartiality, consider involving a neutral third-party or holding a special meeting where all members can voice concerns.
    
5. Best Practices for Long-Term Harmony
   
   Creating a harmonious community environment requires more than just putting out fires. Here are some long-term practices trustees should adopt:
   • Host regular trustee meetings and communicate outcomes to owners.
   • Provide copies of conduct rules to all new residents.
   • Encourage social events to build community spirit.
   • Review and update conduct rules as needed to reflect changes in the scheme.
   • Ensure that all decisions are made collectively and recorded properly.
   
   When trustees foster an atmosphere of respect, communication, and fairness, the community thrives - and so do property values.

Trustees are the guardians of a community's peace and productivity. While managing conflict may not always be easy, it is one of the most important aspects of your role. By understanding the root causes of disputes, following clear procedures, and relying on the legal resources available, such as the CSOS, trustees can maintain order and build a community where all residents feel heard, respected, and fairly treated.

Remember: good governance isn't just about rules - it's about relationships.

If you need guidance or professional support, don't hesitate to contact our Community Schemes Division - we're here to help you manage challenges and keep your scheme running smoothly.