Estate Living Magazine Invest SA - Issue 45 September 2019 | Page 48

c o m m u n i r t y
l i v i n g
HOAs
TEETH?
DO
HAVE
Policies, procedures, our governing documents and our rules and regulations are binding on members who choose
to buy into a homeowners association or sectional title scheme. But, of course, the directors, trustees, management,
and the members themselves have to ensure that these are lawful, consistent and fair, and that they protect the
common interest of the community at large.
We have selected some cases that readers may find interesting
in respect of judgments being handed down that will impact on
the residential community industry. It is, of course, important that
each of these judgments is read in the context of the application
itself. While these cases are useful for reference and precedent,
it should not be assumed that any future similar incidents would
be decided in the same way.
Readers are also alerted to the fact that these summaries are not
to be interpreted as the judgments themselves, and that they
are only a synopsis of the matters. The complete judgments are
available on the ARC portal.
Enforcing speeding rules
The first matter is the case between Mount Edgecombe Country
Club Estate Two and a member pertaining to the rights of an
HOA to implement its rules – in this matter specifically the rules
relating to speeding.
The matter was heard in the High Court and went on appeal to
the Supreme Court, where the judges ruled in favour of the HOA.
The member applied for leave to appeal in the Constitutional
Court, but this was denied. The ruling therefore is that an
HOA does have the right to enforce rules relating to speeding,
whether on public or private roads, where the agreed-upon rules
and regulations have been properly and procedurally set.