Heritage Hill Devco (Pty) Ltd v Heritage Hill Homeowners Association (A541/13) [2015] ZAGPPHC 310; 2016 (2) SA 387 (GP) (24 April 2015)

Heritage Hill Devco (Pty) Ltd v Heritage Hill Homeowners Association (A541/13) [2015] ZAGPPHC 310; 2016 (2) SA 387 (GP) (24 April 2015)

The court held that upon registration of the general plan, individual erven in the township came into existence and vested in the developer as registered owner. The Articles of Association contractually bound the developer to pay levies on all unsold erven. The appellant's reliance on the Kosmos Ridge decision was rejected, as the Deeds Registries Act clearly provides for the creation and registration of erven upon registration of the general plan, not only upon transfer to purchasers. The developer's liability for levies is consistent with the collective interests of all property owners and the equitable administration of the township. The appeal was dismissed, and the appellant was...

Citation
[2015] ZAGPPHC 310
Parties
Appellant: Heritage Hill Devco (Pty) Ltd; Respondent: Heritage Hill Homeowners Association
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
24 April 2015
Case Number
A541/13
Procedural Posture
Civil Appeal / Appeal Against Judgment and Order of the High Court
Outcome
Appeal dismissed. Appellant ordered to pay respondent's costs, including costs of two counsel.
Judges
Rabie, Legodi, Baqwa
Legal Topics
Levies on Unsold Erven, Deeds Registries Act Interpretation, Articles of Association, Developer Liability for Levies
Land and Property Commercial and Corporate Levies on Unsold Erven Deeds Registries Act Interpretation Articles of Association Developer Liability for Levies

Case Brief

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Parties

Heritage Hill Devco (Pty) Ltd

Appellant

Heritage Hill Homeowners Association

Respondent

Procedural Posture

Civil Appeal / Appeal Against Judgment and Order of the High Court

Legal Issues

  1. 1 Was the appellant, after the establishment of the township, the registered owner of individual properties in the township for purposes of the respondent's Articles of Association?
  2. 2 If so, is the appellant liable to pay levies on those properties?
  3. 3 Alternatively, is the appellant only the registered owner of the remaining extent of the township and not the individual erven, and thus not liable for levies?

Ratio Decidendi

The court held that upon registration of the general plan, individual erven in the township came into existence and vested in the developer as registered owner. The Articles of Association contractually bound the developer to pay levies on all unsold erven. The appellant's reliance on the Kosmos Ridge decision was rejected, as the Deeds Registries Act clearly provides for the creation and registration of erven upon registration of the general plan, not only upon transfer to purchasers. The developer's liability for levies is consistent with the collective interests of all property owners and the equitable administration of the township. The appeal was dismissed, and the appellant was...

Court Disposition

Appeal dismissed. Appellant ordered to pay respondent's costs, including costs of two counsel.

Orders

  • The appeal against the judgment of 14 February 2013 is dismissed.
  • The appellant is ordered to pay the respondent's costs of the appeal, including the costs of two counsel.