Estate Living Magazine Issue 30 Smart Environments June 2018 | Page 40

ESTATE RULES
THERE FOR GOOD REASON
A key characteristic of estate living is the existence
of the Homeowners Association (HOA), of which all
owners are required to become a member and pay
levies towards.
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The HOA sets rules and regulations, essentially designed to protect the estate
and its assets, and keep the peace among its residents.
The authority of the HOA stems from a legal contract between the board and its
members, and its rules – as long as they are reasonable – should hold up well in
a civil court in instances where they’ve been challenged.
Certain rules attract more debate than others, and sometimes it might seem
that the HOA is acting outside its mandate by enforcing rules that form part
of other pieces of legislation, such as the Road Traffic Act. An example is
setting a 40 km/h speed limit within the estate, even though 60 km/h is the
speed limit for a public road. In a recent court ruling over exactly this issue,
the HOA was vindicated, when Justice Ian Topping of Durban High Court ruled
that the complainant had ‘contractually bound himself to live within a controlled
environment’, and the rule he objected to was reasonable and lawful.
‘They [the rules] are there to regulate conduct between neighbours and, as
necessary, must be restrictive to take into account the cumulative rights of use
and enjoyment of the estate by all its residents,’ Justice Topping said.
Essentially there are three categories of HOA rules.
Management rules: These rules relate to the governance of the company (owner
of the estate), including HOA meetings, financial controls, voting, appointments
of directors, management practices, and the Memorandum of Incorporation
(MOI). These rules are important because they clearly outline the rights of all
owners as members of the community.
Important documents include the MOI, the Architectural and Building Guidelines,
the annual budget, and all resolutions passed relating to the governance of the
company, which is bound by the Companies Act.
Conduct rules: These can be broken down to health and safety, use of roads and
parks, the keeping of pets, noise and disturbances, the use of machinery and
equipment, the use of facilities, and visitor access. These rules are designed to
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