Sable Hills Waterfront Estate Home Owners’ Association NPC v Sable Hills Waterfront Estate CC (39635/2013) [2015] ZAGPPHC 831 (10 December 2015) per Fabricius J.

The High Court found in favour of the Home Owners’ Association (HOA) and directed the Developer  to pay to the HOA R 841 750.00, being levies due and payable for various unsold erven for the period 1 March 2012 to 3 October 2012, together with compound interest on the outstanding amount from time to time at a rate of 15% per annum and the Developer was ordered to pay the costs of the action, including costs of senior counsel, on an attorney and client basis.

See also Meaning of words not defined by judges

Excerpts

  1. The following considerations appear from these provisions of the Articles of Association, read with the above-mentioned legal principles:

14.1    The Defendant is a member of the Plaintiff – clause 4.1.

14.2    All persons who are registered owners of residential property in the township, are members of the Plaintiff – clause 4.1.

14.3    The persons who are liable to pay levies to the Plaintiff, are the members of the Plaintiff – clause 5.1.

14.4    The levy payments will be apportioned equally between the owners of property (i. e. stands (erven) and units in the estate).

14.5   The Defendant is the registered owner of the erven reflected on the General Plan that have not been transferred to third parties.

14.6    It is common cause that such erven are residential property.

  1. From there, it was suggested that it is a matter of simple logic:

15.1 The Defendant falls within the group that can be described as “members of the Plaintiff who are owners of erven and units in the township”.

15.2 All persons who fall within that group are liable to pay levies to the Plaintiff.

15.3 Ergo, the Defendant is liable to pay levies to the Plaintiff.