Propell Sectional Title Solutions (Pty) Ltd v Summerville Homeowners Association and Another (17198/2021; 20088/2022)
Propell Sectional Title Solutions (Pty) Ltd v Summerville Homeowners Association and Another (17198/2021; 20088/2022) [2024] ZAWCHC 187 (23 July 2024)
The court found that the Summerville Homeowners Association was a voluntary association, not statutorily created under LUPO, and that the conditions inserted in the title deeds created only personal rights, not real rights, in favour of the Association. The amendments to the constitution in 2010, which purported to allow the Association to take out a loan and cede its rights to Baedex and Propell, were invalid as they circumvented entrenched clauses and were effected without proper notice or authority. The Trustees' resolution to enter into the Levy Finance Agreement and cede rights was ultra…
Source excerpt
- Homeowners Association
- Title Deed Conditions
- Levy Finance Agreement
- Constitution Amendment
- Cession Of Rights
- Ultra Vires