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BUSINESS NEWS - When purchasing property in an estate, owners may be required to form part of the Homeowner’s Association (HOA), whose key obligation is to apply and enforce the estate’s regulations and procedures.
The HOA may implement rules to manage and maintain the safety and appearance of the estate, as well as impose sanctions and penalties for non-adherence. These penalties and sanctions must in turn be imposed fairly, and must apply equally to all homeowners.
A recent court case dealt with the conduct of a HOA that failed to act consistently in the application of its rules.
The architectural rules of the Cedar Lakes Estate in Johannesburg state that timber must be used for all garage doors. Should a homeowner wish to utilise a different material or finish, approval must be sought from the HOA.
A homeowner installed a new garage door with a mirror finish and duly applied to the HOA for approval, which was refused, despite the fact that several other properties in the estate had garage doors that were not made of timber.
The homeowner approached the Community Schemes Ombud Service, which found no evidence that the HOA had acted unreasonably, and ordered the homeowner to remove the garage door.
The homeowner appealed the decision to the High Court, arguing that, given the evidence provided of other properties with garage doors of a different finish, the Adjudicator’s order was flawed. The appeal was upheld by the High Court and the order to remove the garage door was set aside.
This case provides a warning to the managing authorities of communal schemes not only to act in accordance with the applicable rules and regulations, but also to ensure consistency and fairness in their decisions.
Contact Jaco Lötter and his team to find out how we can help you with the issues you might be facing.
Tonkin Clacey Inc. Mossel Bay
044 220 0240
083 600 4903
jaco@tcinc.co.za
www.tcinc.co.za
Office 4, Nautilus Place
27 Marsh Street,
Mossel Bay
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