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