{"id":766,"date":"2019-01-03T10:54:21","date_gmt":"2019-01-03T10:54:21","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/law\/?p=766"},"modified":"2019-01-07T08:21:20","modified_gmt":"2019-01-07T08:21:20","slug":"beware-the-building-deadlines-when-buying-to-build","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/law\/2019\/beware-the-building-deadlines-when-buying-to-build\/","title":{"rendered":"Beware the Building Deadlines When Buying-to-Build"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">\n\nHere\u2019s yet another warning from our courts to take seriously the building deadlines commonly imposed on buyers of plots in residential estates. Failure to comply with them could expose you to heavy fines, recurring penalties and even the risk of losing your plot altogether.<br><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A Home Owners Association (HOA) imposed \u201cdouble levy\u201d penalties totalling R105k on the owners of a plot when they failed to start development before deadline.<\/li><li>Taken to court, the owners challenged the validity of the penalties on a variety of technical and other grounds, but failed on every count.&nbsp;<\/li><li>The end result is they must now pay the penalty levies, late payment penalties, and attorney-and-client legal costs for both the original magistrates\u2019 court hearing and for the unsuccessful appeal to the High Court.<\/li><\/ul>\n\n\n\n<h6 class=\"wp-block-heading\">3 lessons for HOAs and buyers<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">The HOA\u2019s victory in this case highlighted several important factors that both HOAs and buyers would do well to take note of \u2013<br><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>The HOA\u2019s power to raise \u201crecurring penalties\u201d was upheld only because of the wording of its articles of association. They specifically gave the HOA the power to \u201c<em>impose a system of fines or other penalties<\/em>\u201d.&nbsp; Had the wording only allowed \u201ca fine\u201d, its attempt to impose a recurring penalty would have been shot down (exactly that happened to another HOA in an earlier case).<\/li><li>Penalties must be proportionate to the prejudice suffered by the HOA, but courts are unlikely to interfere unless \u201cthe penalty is unduly severe to an extent that it offends against one\u2019s sense of justice and equity\u201d.&nbsp; Here, the double-levy penalties were upheld because the \u201congoing delay in developing their property in accordance with their obligation \u2026 prejudiced the underlying rights of other owners \u2026 to enjoyment of a fully developed estate.\u201d&nbsp;<\/li><li>The title deed gave the HOA the right to claim the plot back for breach of the building clause, but, held the Court, that right did not replace the right to claim penalties; it was an additional right available to it.<\/li><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The bottom line for \u201cbuy to build\u201d plot purchasers is this &#8211;&nbsp;<strong>make absolutely sure&nbsp;before&nbsp;buying that you will actually be able to build by deadline.<\/strong><\/p>\n\n\n\n<p style=\"font-size:12px;margin-top:40px\"><strong>Disclaimer:<\/strong> The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.<\/p><p style=\"font-size: 12px;color: #ccc;text-align: right\">\u00a9 LawDotNews<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s yet another warning from our courts to take seriously the building deadlines commonly imposed on buyers of plots in residential estates. Failure to comply with them could expose you to heavy fines, recurring penalties and even the risk of losing your plot altogether. A Home Owners Association (HOA) imposed \u201cdouble levy\u201d penalties totalling R105k [&hellip;]<\/p>\n","protected":false},"author":101014,"featured_media":767,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Beware the Building Deadlines When Buying-to-Build &#8226; LawDotNews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dotnewsconnect.co.za\/law\/2019\/beware-the-building-deadlines-when-buying-to-build\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Beware the Building Deadlines When Buying-to-Build &#8226; LawDotNews\" \/>\n<meta property=\"og:description\" content=\"Here\u2019s yet another warning from our courts to take seriously the building deadlines commonly imposed on buyers of plots in residential estates. 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