Estate Living Magazine New Beginnings - Issue 37 January 2019 | Page 48
C o m m u n i t y
L i v i n g
AN INTRODUCTION TO
cOmmunity
ASSOCIATION LIVING
What is the role of a community association? What’s the difference between sectional title and freehold
communities? And how does all this work? These questions and others are answered here.
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FIRSTLY, WHAT IS A COMMUNITY ASSOCIATION?
According to Jeff Gilmour, the president of the Association of
Residential Communities SA, and as stated in the Homeowners
Association Manual, by Peter and Marc Dunbar:
Mandatory homeowners associations are part of an overall concept
of residential property ownership. Purchase of the home brings with
it membership of the association, which provides the structure for
operation and management of the residential community concept.
Membership includes certain mandatory obligations, financial
responsibilities and rules of the association.
A community association is an organisation established to govern a
residential community. It usually owns and manages the common
property of the community for the owners.
PURPOSE OF A COMMUNITY ASSOCIATION
Community living is very popular at present, due to the inherent
benefits associated with communities and their associations. The
main responsibilities of the community associations are to:
• maintain and beautify all common areas
• ensure that security is maintained
communicate with all residents
keep proper records and books of accounts
enforce agreed rules and regulations
protect the interests of property owners
offer various services and amenities to owners and residents
encourage or organise social activities, thereby fostering a sense
of community among residents.
There are two basic types of community associations, namely
sectional title and freehold developments. In a sectional title
development, a body corporate is established through which levies
are raised. In a freehold estate, each owner has exclusive ownership
to the property purchased, as well as an interest in the communal
areas. The common areas, such as roads and parks, are owned by
the association, of which every owner is automatically a member.
LEGAL ISSUES AFFECTING COMMUNITY ASSOCIATIONS
Regulations for freehold development are contained in the
Companies Act, and for sectional title development in the Sectional
Titles Act. Associations are obliged to comply with various codes and
laws established by local government of municipalities, e.g. local
fire codes or health and safety laws. Additionally, rates, taxes, and
other charges are levied on all common areas by the municipalities.
Any expenses arising as a result of these codes would need to be
reflected in the association’s budget.
THE GOVERNING DOCUMENTS
The role of the governing documents of an association is to provide
the structure for the operation of the community, e.g. to:
• formalise the relationship, and detail the rights and obligations
between owner and association
• establish rules and regulations that will protect the value of the
individual and common property, and create standards that will
enhance the living conditions within the community
• create a framework for managing the community and funding its
operations.