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.