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South Africa decisions
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Chapmans Bay Estate Home Owners Association v Lotter and Others (525/2023) [2024] ZASCA 153 (12 November 2024)
The SCA held that HOA penalty levies under clause 9.10 apply only to owners who took transfer directly from the developer, not subsequent owners.
De Wet N.O. and Others v Water's Edge Home Association; De Kock N.O. and Another v Water's Edge Home Association (A110/2022) [2022] ZAWCHC 155 (24 August 2022)
The High Court dismissed appeals over HOA penalty levies, holding the trustee committee had power to impose them and no reduction was justified under the Conventional Penalties Act.
Eagle Canyon Homeowners Association v Blakes Maphanga Incorporated (2013/02686) [2016] ZAGPJHC 282 (24 May 2016)
The court found that the plaintiff's articles of association and builder's code do not expressly confer the power to impose penalty levies for failure to complete a dwelling within the specified time. Clauses cited by the plaintiff refer generally to levies, fines, and rules for the advancement of members' interests, but do not specifically authorize penalties for late construction. The court held that powers not expressly provided in the constitution cannot be exercised by resolution at a general meeting. The precedent in Kenrock Homeowners Association v Allsop was applied, confirming that n…
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Dennegeur Estate Huiseienaarsvereniging v Zonnekus Mansion (EDMS) BPK (2024/2011) [2014] ZAWCHC 70 (8 May 2014)
The court found that the respondent's dispute regarding the applicant's claim was genuine and based on reasonable grounds, specifically relating to compliance with prescribed formalities and internal procedures for levying charges. The respondent raised issues about the validity of resolutions authorising the charges and whether procedural requirements were met. The applicant failed to provide clear evidence that all levies and penalties were properly authorised in accordance with its constitution. The court held that such disputes should be resolved through trial, not liquidation proceedings…
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