KVV Inc. Attorneys

Building in Security Estates: The ‘Persuasive Sting’ of Penalty Levies

KVV Inc Attorneys

Published on: 04/03/2025

Plot and plan purchases offer dream home potential and investment value, but HOA building timelines are crucial. Failure to meet deadlines can trigger hefty penalty levies, sometimes multiples of normal levies. While courts can reduce excessive penalties under the Conventional Penalties Act, a recent High Court case highlights the difficulty. The Court emphasized the need to prove the HOA's prejudice, considering not just monetary loss but also broader interests like security and aesthetics.

Property

Beware the Building Deadlines When Buying-to-Build

KVV Inc Attorneys

Published on: 04/03/2025

Building deadlines in residential estates are serious.The Home Owners Association's (HOA) right to impose recurring penalties was upheld due to specific wording in its articles of association. Penalties must be proportionate, but courts won't interfere unless they are unduly severe. HOAs can also reclaim plots for breaches, in addition to claiming penalties. Buyers: ensure you can meet build deadlines before purchasing.

Property Law