Home Owners Associations – PROPERTYZZ.COM

Home Owners Associations

What is a homeowners association in South Africa?


A homeowners’ association is a community scheme in which individual properties are exclusively owned but grouped along with some communal infrastructure like roads, services and security facilities. The owners of the properties are members of an association that owns and manages the communal facilities. A homeowners’ association (also referred to as a “homeowners’ association” and known by the initials “HOA”) is a management body that plays a central role in a legal and administrative arrangement frequently applied in the provision of housing in South Africa.


What is the mandate of an HOA?

The key mandate of an HOA is to enforce a set of rules, procedures and policies which are agreed upon through an HOA constitution or commonly known as a Memorandum of Incorporation. The financial obligations of HOA which include security for the property, waste management, insurance premiums, common rates and taxes, and administrative costs are catered for through the monthly levies paid by members.  Leaders of HOA are called trustees or directors and they are elected during the Annual General Meeting attended by members of the association.


How is a Homeowners’ Association formed?

HOAs are formed out of a need to properly manage the property. The first step in the formation of an HOA is therefore the construction of the property and possible subdivision into individually owned separate lots. An HOA can be established as a non-profit company or as a common-law association. A non-profit HOA operates under the Companies Act which stipulates how this body will operate and how Directors and Executives will be appointed.


How is a Homeowners’ Association formed? 

Common law associations have a flexible structure and are bound by their own rules rather than the Companies Act. Common law associations are led by trustees and not directors. When it comes to registration, a non-profit HOA is registered as a non-profit company while a common law HOA is formed when two or three members agree to the formation of the association. Members in HOAs are bound by the registration of title deed conditions.


Why should you consider being a part of a Homeowners’ Association leadership?



By being a member, you are provided with the privilege to learn business accountability principles. You will get a chance to know how collected levies are handled and spent. This association can also assist you with learning and improving your leadership skills and financial management capabilities concerning property management practices and the legalities involved in various situations.


Maintenance and or upgrading the value of a property is a big deal in an HOA. By being a part of it, you get a chance to be involved in important maintenance decisions which ultimately affect the value of your property.


Rules around your property are formulated by the HOA. These rules pertain to pets, noise, events, access to social amenities, etc. By being part of an HOA, you will have a say when it comes to which rules should be formulated or changed at a particular time.

Community building and upliftment

An HOA is the best way to become a part of community building and upliftment efforts. Not only do you get a chance to meet community members and hear their complaints and requests, but you become a community builder through the solutions provided. All efforts and improvements made towards security, gardens, lighting, and swimming pools are community upliftment steps. Added to all this, you enjoy the perks and privilege of accessing social amenities around your property without much difficulty.

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