Real Estate Investor Magazine South Africa April 2015 | Page 23

REI RESIDENTIAL
HOME OWNERS’ ASSOCIATION CAN BLOCK
HOME SALES

H

ome Owners’ Associations
(HOAs) are relieved after
the Supreme Court of
Appeal (SCA) handed down a
decision.
This judgment confirms the
requirement for a levy clearance
certificate to be issued by the
HOA before any property in an
estate can be transferred to a
new owner, and the liability of
the owner for payment of all levies until the date of transfer.
“[The ruling] puts HOAs on the same footing as local authorities and the body
corporates of Sectional Title schemes, when it comes to the collection of debts for
services rendered. This, we believe, is very much in the spirit of the new Community
Housing Schemes legislation due to be implemented later this year,” says Andrew
Schaefer, Managing Director of national property management company, Trafalgar.
“The SCA decision means that an HOA can refuse to issue a clearance certificate and
so effectively block the transfer of a property to a new owner until the current owner
has brought all outstanding levy and other payments up to date,” he says.
“This is an acknowledgment of the fact that levies are the ‘lifeblood’ of estates, in
that they are needed to enable HOAs to operate and maintain estate infrastructure.
The SCA noted it is vital to ensure the continued supply of such services for the
benefit of all residents and the economic viability and sustainability of these estates,”
Schaefer adds.
The Court also decided that the HOA was entitled to block a transfer.

Ian Slot
Managing Director
Seeff Properties, Atlantic Seaboard and City
Bowl, Cape Town

A few years ago visionary investors redeveloped older
buildings in Cape Town’s City Bowl. Now, after an
initial slow start, demand exceeds supply by quite
a wide margin, opening up further development
opportunities. For example, converting the older
C-grade office buildings into residential and mix-use
complexes.

Dr Andrew Golding
CEO
Pam Golding Properties

Mouille Point’s average achieved value in rand per
m2 increased by 532 % in total, or 14 % per annum,
from about R4 600 to R29 070 per m2 over 14 years
(2000-2014). This has escalated further to a current
average of R45 000 to R50 000.
www.reimag.co.za

Expert Q&A
Demand for sectional title
properties in Cape Town

David Rebe
CEO
Sandak-Lewin Property Trust
Q What is the state of the sectional
title market in Cape Town?

The surge in demand for sectional title
properties in Cape Town experienced in
2014 is set to continue this year. Now
is a good time to purchase property in
Cape Town, as the sector is experienci