The HOA gets sued for R2 million, and settles board must maintain public relations, so because he does not have a key. The baby
for R1 million. that home owners do not feel at the mercy dies, and the parents sue.
of the board.
•
What went wrong? The board should
listen
to
homeowner
complaints,
and
•
SCENARIO #6
the pool had enough space underneath for
a baby to crawl under. A locked gate that
investigate them to determine if they are Board legitimate, and then take steps to remedy weeks. Other board members want to replace the situation. The excuse that there was him, as they do not like him. Board member no money to install a fence around the ‘X’ resumes communication, and insists that around
play park did not fly with the parents he remain on the board. The board refuses. dangerous areas for safety, and strictly
of the seriously injured child. The HOA’s Turmoil and dissent ensue, leading to recall. adhere to safety codes. Ensure that gates
member
‘X’
is
incommunicado
for
for the new insurance was three times the
requires a key from the inside is dangerous.
•
Lesson to be learned: Check fences
pools
or
other
potentially
to pool areas can easily be opened from
insurance was later cancelled, and costs
•
What went wrong? The fence surrounding
•
What went wrong? The board should
the inside with a latch or an escape bar.
previous instalments. have read its governing documents to Lesson to be learned: Do an annual risk ascertain the procedure for declaring a CONCLUSION
management survey. Evaluate potential vacancy. The HOA has the duty to enforce the rules. It
Lesson to be learned: Before any action is also has a fiduciary duty towards its members.
alleviate them and maintain adequate taken, consult your governing documents This means that it must act in the best
insurance. and the law that governs your non-profit interests of its members and the association.
risks around the HOA, and take steps to
•
corporation. Follow the procedure that is
SCENARIO #4
A freehold development has 200 single-
required; do not make exceptions.
Enforcement of rules must be uniform and fair.
Do not let emotions get in the way of reasoned
family houses. The HOA owns the roads. The SCENARIO #7 estate is 30 years old. Sidewalks are uneven A developer, who built 200 homes in 2007, and take steps to alleviate them. Listen to
because of trees. A person trips, and falls is confronted by the board because the home owners’ concerns. Do not fall into the
on the uneven sidewalk, breaking her ankle. windows leak. The developer convinces the trap of tabling items on the agenda because
The board says the HOA is not responsible, board not to sue him, and assures them that you do not want to make difficult decisions.
and that it doesn’t have the money to fix the he will repair the windows, but he does not. Someone has to make those decisions. Avoid
sidewalks. The victim sues. The board eventually filed a law suit in 2018. problems. Be creative in problem solving.
The law suit is dismissed. Know your governing documents. Know your
•
What went wrong? The board failed
community. Be sensitive to what the home
What went wrong? The board trusted owners want. Know your procedures. Follow
was negligent in its duty to maintain the the developer to do the repairs, but the them. Establish priorities. Be informed.
common area. developer strung the board along until the
to maintain the sidewalks. The board
•
decisions. Review your association for risks,
•
Lesson to be learned: Maintain the
common area. Deferred maintenance can
five-year statute of limitations expired.
•
Lesson to be learned: When you have
create risks that are not worth it. If there construction defects, you must be aware of
is insufficient money, bite the bullet and compliance with the statute of limitations
specially assess. in order to sue; consult an experienced
SCENARIO #5
The board of directors removes a tree in front
attorney to guide you through this complex
series of laws.
of a unit without previously informing the SCENARIO #8
home owner. The home owner claims their A townhouse complex encircles a pool that
right to privacy has been violated. is surrounded by an iron fence with a locked
gate. A pregnant mother is in the garage with
•
What went wrong? The home owner felt a 20-month-old baby. The phone rings, so the
slighted by the board’s action, and felt the mother goes into the house. The baby crawls
board should have notified them of the under the fence and falls into the pool.
planned action. The home owner believed
•
that the right to privacy was a property A neighbour sees this from the second storey,
right. runs down to the pool, by which stage the
Lesson to be learned: Although the mom has discovered that the baby is gone.
board had the authority to take out the Both the neighbour and the mother have
tree, the board should have notified the forgotten their keys and cannot get in. The
home owner before removal, so that their neighbour climbs the fence to rescue the
position could be stated. Remember: the baby, but cannot get out of the pool area,
57
INDUSTRY JOURNAL
Simbithi Eco Estate