ARC overview
T
he residential community comprises of
around 2000 residential estates, which
are governed by homeowners associations.
When owners buy into a residential
community, they automatically become
members of that specific association. These
homeowners associations are non-profit
companies falling under the auspices of the
Companies Act.
estate, and could also include estates with
hotels, schools, business parks and other
commercial entities.
There are homeowners associations that are
referred to as common-law associations.
Directors and trustees of both forms of
homeowners associations have a fiduciary
responsibility in respect to their roles and
responsibilities in leading the associations.
• A privately owned organised community
where the developer has installed services
and infrastructure that is maintained by the
homeowners association.
A professional community manager is
employed to manage these communities
and it involves overseeing the operations of
finance, security, maintenance, compliance
and aesthetics. Types of residential estates
will vary from a golf estate, equestrian estate,
eco estate, retirement village and wildlife
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Residential communities with an HOA vary
in size from small boutique communities
with 10 homes to large estates with over 10
000 homes. Generally speaking, residential
communities are characterised by:
• Is contained within boundary walls and
electric fencing with a control room and
controlled access gates.
• Homes that are constructed within agreed
architectural guidelines maintaining the
aesthetics as per the development plan.
• Member facilities like walking trails, sports
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centres, community centres, boating and horse
stables etc.
• Financed by a member levy paid by all
owners as determined by an annual budget
approved at an Annual General Meeting.
• Sub developments that are sectional title
schemes may be contained within these
estates.
Due to these characteristics, property
values in an organised community can be
up to 30% higher than property in a suburb.
50% of these residential communities are
in Gauteng, 18% in the Western Cape, 10%
in Kwazulu Natal, 10% in the North West
province and 7% in Mpumalanga with
the balance spread across the remaining
provinces.The average property value is
highest in the Western Cape and Kwazulu
Natal and is lowest in Gauteng.