Residential Estate Industry Journal REIJ 6 ARC Journal 2019 | Page 26

INDUSTRY OVERVIEW purpose for wanting such information, and his application was dismissed. BUILDING PENALTIES AND LATE PAYMENT OF LEVIES This matter, between Cilantro Homeowners Association and a member, dealt with the fact that the HOA was imposing its rules relating to the fact that the member had failed to begin and complete the building of his home on time, as well as the late payment of ordinary levies by the member. The member claimed that requests by the HOA to pay the late-building penalties were not valid. These claims, essentially, were around the fact that the HOA had not met its obligations procedurally and included the issue of whether the HOA had suffered any damages as a result of the late building by the member. Furthermore, the member also claimed several irregularities within the HOA – for example that the rules and regulations had not been registered, and that the incorrect number of directors was serving on the board, according to its governing documents. The judgment in this matter went in favour of the homeowners association, where the judgment had included the fact that the decision to in previous meetings, a member had held up to any clauses that contradict those that are impose building penalties was valid, and the 150 proxies, and so in essence controlled the contained in the Companies Act. fact that the member, at the time of signing off outcomes of that specific meeting. The judgment in this matter went in favour of and approving the rules and regulations, was serving as a director of the HOA. LIMITING THE NUMBER OF PROXIES A MEMBER MAY HOLD The member argued that it is the right of any member to request another member to hold proxy, and that the numbers cannot be restricted in any form. The judges in this matter the member. RULES PERTAINING TO THE CHOICE OF THE PAINT COLOUR OF This matter, between Silver Lakes Homeowners consulted the Companies Act, wherein it is A PROPERTY Association and a member, involved the HOA’s stated that a member has the right to give a In this matter, between Bush Willow Park HOA attempt to limit the number of proxies that proxy to another member, and they felt that and a member, the member claimed that it a member may hold in any special or annual the interpretation thereof implies that an HOA was his right to paint the exterior of his home general meeting to five. The HOA argued that, cannot include in the governing documents any colour he chooses, and the rules were not specific in this regard. The rules did, however, stipulate that any exterior finishes and paint colours had to be submitted to the HOA prior to the commencement of painting. The member argued that it was only after the fact that the HOA amended its rules to become more specific in relation to the rights of the member to paint the exterior of his home in specific colours. The HOA argued that, while the previous rule was not specific in this regard, it was implied that all finishes and paint colours require the approval of the HOA before commencement. The judgment went in favour of the HOA, and the member was instructed to repaint the exterior of his home. 26 INDUSTRY JOURNAL