On the road to property ownership: Homeowner's Association and Body Corporate

Homeowner's Association fees

A Homeowner's Association or HOA is primarily established for the good of property owners. A HOA is normally formed in the case where a Body Corporate is not suitable due to the ownership scheme under which the properties fall. HOA's are established in estates or clusters of properties where owners have full rights of their section (unlike a sectional title scheme where owners purchase a section of a building) or own freehold property. Similarly, to a Body Corporate, a HOA, is in part, responsible for the establishment of certain rules like policies regarding pets and whether an estate will allow holiday letting or not. An HOA can charge a fee, or levy however, the amount is based on several factors specific to the HOA. The regulations of a HOA can be limiting for some, so it pays to do your homework beforehand to ensure these limitations do not infringe on your lifestyle.

HOA is governed by the Body Corporate

• Sectional title homes are beholden to Body Corporate rules and the Homeowner's Associations. This means that approvals are needed before any changes are made to your home. However, this can also be an advantage as it ensures there is uniformity when it comes to the look and feel of an estate or complex, which ultimately, adds value.

Sectional Title Ownership

This is ownership of a part, or section within a building, complex or development. This type of ownership means you have bought an undivided section within something, and the rules are governed by the Body Corporate which is responsible for the holistic management of a scheme, including things like owner's levies and maintenance or upkeep of common areas and facilities. In South Africa, duplexes, simplexes, apartments, and townhouses are normally held under sectional title scheme.

BC is made up of trustees

Special resolution and votes

Governed by ST law

Ultimately protect your asset

Vested interest of all

Uniform aesthetic