Check Rules Before Buying St Property

EmailEmail Print Share

21 Jan 2013

When buying into sectional title schemes or estates run by homeowners’ associations (HOA) (which is what is prevalent when units in an estate are sold under full title), one has to be aware of the conduct rules of the scheme, and the relevant parties need to ensure that the rules are known to all those concerned. 

“The rules have been drawn up for a reason, to keep the living conditions within the scheme pleasant and acceptable to all, and once you do buy into sectional title or homeowner association run scheme one has to be aware of the rules at all times.”

This is according to Lanice Steward, managing director of Knight Frank Anne Porter, who says it is the responsibility of the agent to provide the purchaser with the HOA or body corporate rules before the signing of the purchase agreement, and it is then the responsibility of the buyer to read, accept and understand these rules and the implications thereof. 

In a recent court case covered in a Smith Tabata Buchanan Boyes newsletter, Kingsmead Office Park Owners Association sued Shasri Investments cc for unpaid levies to the amount of around R200 000, and although this case is a commercial one, the same principle applies to residential property, says Steward.  

Each purchaser in this scheme, in terms of the provisions in the sales agreement, was obliged to become a member of the scheme and pay levies which would go towards the maintenance and upkeep of the office park. 

The owner refused to pay his levies as he claimed that he did not enjoy the same benefits as other owners in the scheme. He said he did not have, for example, the benefit of the perimeter fence and a park that was contained within the office block development. Further development to the scheme was planned which could include Shasri’s erf in the perimeter fencing and grant it access to the central park, but these had not been finalised. 

The courts held that the levies had to be paid and that the buyer, Shasri, was contractually bound to pay the levies owed as he had signed a document in which he became a member and would be bound by the articles of association.  

This is of particular importance, says Steward, when it comes to pet ownership, general conduct, noise levels, parking bay allocation and the number of people allowed in each unit.  

Similar Articles

Failure to obtain an Electric Fence Compliance Certificate...

Renovations can boost your property's value and ensure you...

‘Vis major’ is a legal term referring to a superior force...

View all articles

Top Articles

Take full advantage of the outdoors by creating an...

Offering a unique lifestyle and abundant natural beauty,...

Whether you’d like to spend time on the glorious coast or...

View all articles
Top Articles
13 Feb 2016
Offering a unique lifestyle and abundant natural beauty, wine farms in t...
12 Feb 2016
Whether you’d like to spend time on the glorious coast or go further inl...
12 Feb 2016
St Francis Bay in the Eastern Cape is the ideal weekend or holiday escap...
12 Feb 2016
At USD$217 trillion, real estate is the pre-eminent asset class globally...
12 Feb 2016
Former Protea cricketer and world-renowned commentator, Pat Symcox, has ...
Get the latest property news.
Select your options:

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.

Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724