Gated communities and private estates have become common place in South Africa mainly due to their perceived feelings of added security and safety. What most people might not realise is that each of these communities and estates are ruled by a Home Owners Association (HOA) that has their own set of rules and regulations with regards to what can and cannot be done.
Ask to see the most recent trustee meeting minutes – viewing the minutes will be able to give you an idea of the topics and issues that are current within the estate.
“HOAs are often confused with Sectional Title Schemes or Bodies Corporate, and whilst the two are similar there are many differences,” says Johann Le Roux, Director of Propell.
Before buying into a gated community or private estate, Le Roux advises that you ask the following questions with regards to the HOA for that estate:
- Make sure you know what the HOA rules and regulations are. For example are you able to sublet any parts of your property or run a business from your property? What are the styles and colours allowed? Are you allowed pets within the estate; and if you are allowed dogs, must they be walked on a leash when out in the common area? If you are unsure of any of the rules and regulations stated, seek legal advice.
- What is the financial standing of the HOA? Is the HOA currently in the black? Does it have any monies saved for future projects? What are the current levies and when last were they increased?
- What is the arrear levy collection policy? Obtain a list of arrear owners to establish if there are significant arrear balances, which could impede the HOA’s cash flow.
- Ask to see the most recent trustee meeting minutes – viewing the minutes will be able to give you an idea of the topics and issues that are current within the estate.
- Find out if there are any penalties for not building within a specified time period – this especially applies to estates where you buy your plot and then build. The penalties for not building within a specified time period have been known to be as much as 8 times what the current levies are.
- Make sure the home/property that you are buying is not already out of compliance with the HOA regulations.
- What do your levies cover? For example – security, road maintenance, path maintenance, fences, public areas such a pool, club house, etc.
The main advantage of living within an HOA is the lifestyle opportunities they offer, says Le Roux.
"Most plots within a gated community or private estate are often bigger than 1000sqm giving you the feeling of space and freedom whilst still being in a safe communal setting, governed by rules and regulations."
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