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HOA -Home Owners Associaiton Pty Ltd

By Samantha Britz on Mon, 05 Mar 2012 at 07:11

PROBLEMS IN OUR HOME OWNERS ASSOCIATiON.
Please help.
NON-PROFIT HOME OWNERS ASSOCIATION PTY LTD.
FIDUCIARY DUTIES OF DIRECTORS OF NON PROFIT HOA PRY LTD..
ABUSE OF POWER OF DIRECTORS.
COMPLIANCE WITH COMPANY'S ACT FOR HOA PTY LTD,
COMPETITION ACT COMPLIANCE OF DIRECTORS OF HOA.
CONSUMER PROTECTION ACT COMPLIANCE OF DIRECTORS OF HOA PTY LTD.
LEGAL RECOURSE UNDER CONSUMER PROTECTION ACT.
LEGAL REMEDY OF HOA MEMBERS.
ARBITRATION OF OWNERS OF HOA.
OPEN AND TRANSPARENT ACTS OF DIRECTORS OF HOA.
ENRICHMENT OF DIRECTORS AT EXPENSE OF HOA MEMBERS.
EXTRA PRIVILAGES OF DIRECTORS OF HOA .
ABUSE OF DOMINANCE.
PRICE FIXING OF HOA DIRECTORS.
DIRECTOR OF HOA PTY LTD IS ALSO MANAGING AGENT OF HOA AND ENRICH HIMSELF BY THIS.
FLIGHTS - BUSINESS CLASS OF HOA DIRECTORS AND HOA MEMBERS MUST PAY FOR THIS.
HOA DETERMINE THAT EHEIR LEVIES MUST STAY THE SAME AT R1000 A MONTH, FOR AN INCOME GENERATING ENTERPRISE ON THE PROPERTY - BUT THE ORDINARY HOA MEMBERS HAVE THERI LEVIES GO UP BY 400%.
"SECRET" CONTRACTS IN WHICH THE DIRECTORS ENRICH THEMSELVES.
SO CALLED "DEVELOPER" DIOES NOT DEVELOP ANYTHING FOR 10 YEARS, BUT CLAIM ONCE HE START "DEVELOPING" THAT THE ORDINARY HOA MEMBERS MUST PAY FOR ALL THE INFRASTRUCTURE, INCLUDING THE SEWAGE, TEH ROADS, THE WATER PIPER, THE ELECTRICITY LINES, THE TELEPHONE LINES.
_______________________________________________________________
How does the CPA -Consumer Protection Act - HOA help us?
- Trustees and directors in Langebaan: protection for owners.
- Ask the right questions - the new law applies to the HOA.

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RE: HOA -Home Owners Associaiton Pty Ltd

Samantha Britz replied on Mon, 05 Mar 2012 at 07:15

I read the following on the web, but what is the relevance for the abusive power of HOA Board members? EASA says New law no threat to HOA rules
New law no threat to HOA rules
The new Consumer Protection Act will not give homeowners in
residential estates unlimited rights to do as they please without
regard to the management and conduct rules of their homeowners'
associations (HOAs).
So says Jeff Gilmour, president of the Association of Residential
Communities (ARC), in response to recent reports that HOAs will be
infringing the consumer's "right to choose", entrenched by the new
legislation, if it accredits only certain suppliers and service
providers to work on their estates - and that residents of the estates
will thus be justified in challenging or ignoring such accreditations.
"Following this line of reasoning, it would then also be true to say
that the HOA is interfering with the homeowner's ‘right to choose'
when it sets down architectural guidelines for the estate, or makes
rules about parking and pets, or even when it requires residents to
pay their levies.
"And clearly this is ridiculous. There would soon be chaos in an
estate - and an ensuing decline in property values, security and
lifestyle - if everyone just ignored the HOA rules and did their own
thing. It's the existence and effect of certain rules that make
estates desirable in the first place.”
Gilmour points out that even in traditional suburbs, homeowners have
to follow local authority regulations and by-laws that restrict the
type and height of buildings that may be constructed, for example, or
provide for noise limitation, or, for that matter, control the display
of estate agents' advertising boards.
"The point is that these by-laws are not ill-intentioned attempts to
curtail people's freedom, but rules made for the common good of the
community of residents who have chosen to live in that area - as are
those put in place by any well-run HOA for the residents of a
particular estate.
"In this regard, it is also important to note that HOAs are not
voluntary or informal bodies run by a handful of owners having fun and
making up rules as they go along. Most HOAs are registered Section 21
companies of which every homeowner in that particular estate is
automatically a member, and thus has a very clear say in what rules
are made and how the estate is run.
"The only volunteerism taking place is usually on the part of those
elected by their fellow homeowners in the estate to be directors of
the HOA, who often do the job on a voluntary basis despite the heavy
management and fiduciary responsibilities involved.”
Consequently, he says, those who are suggesting that HOA rules will
simply be superseded by the Consumer Protection Act should perhaps
consider a 1997 Supreme Court decision that makes it clear that while
it is everybody's "right to choose" not to buy into a complex governed
by certain management or conduct rules, those who do buy there are
effectively agreeing to live by those rules, even if this means giving
up some of their common law rights.
HOWEVER IT IS ESSENTIAL TO HAVE STRICT RULES, and to make sure that a
shortened copy is given to each person who rent in the HOA. In fact it
is the duty of the owner to e-mail a copy to the person who is renting
his house, and tao ensure that this person has signed the agreement
BEFORE he is admitted to the estate run by the HOA.

RE: HOA -Home Owners Associaiton Pty Ltd

Annie Graeme replied on Mon, 05 Mar 2012 at 07:25

non-profit Home Owners Association Pty Ltd falls under the new companies act of SA
IThe question is: s Your Board Carrying Out Its Fiduciary Duty? -Know What that Duty Is & What Constitutes a Breach
One of the most distressing issues confronting board members is how to comply with their fiduciary duty to shareholders and unit owners. Although misconceptions abound as to the precise nature and scope of this obligation, a breach of the fiduciary duty could result in grave consequences for both the offending board member and the community which he represents. . Basically, a breach of the fiduciary duty to shareholders and unit owners occurs whenever a board member's abuse of such power results in harm to one or more of his constituents.
Defining Fiduciary Duty
The essence of the fiduciary relationship is best described
• ...a fiduciary relationship is one founded on trust or confidence reposed by one person in the integrity and fidelity of another...the rule embraces both technical fiduciary relations (i.e. trustees, executors) and those informal relations which exist whenever one man trusts in and relies upon another...A fiduciary relation exists when confidence is reposed on one side and there is resulting superiority and influence on the other...
Thus, the placement of one's trust, confidence and responsibility in another person or persons is the hallmark of a fiduciary relationship. The investiture of such trust, confidence and responsibility in the fiduciary bestows upon him or her a position of influence and superiority over the person(s) with whom he deals. As such, he is charged with an extraordinary degree of moral accountability to these people. The scope of this moral accountability is described
• A trustee (i.e. fiduciary) is held to something stricter than the morals of the marketplace. Not honesty alone but the punctilio of an honor the most sensitive is then the standard of behavior...
Thus, certain types of conduct which might be permissible in the context of ordinary business dealings are off limits to a fiduciary because of the special attributes (i.e. power and influence gained by virtue of the repose of trust) of his relationship with his dependents. The courts have articulated two basic precepts of fiduciary conduct:: The duty of undivided loyalty by a fiduciary to those under his care; and the duty of a fiduciary to exercise the utmost of good faith towards his dependents.
The duty of undivided loyalty basically requires the fiduciary to at all times put his charges' interest ahead of his own self interest and to refrain from profiting at their expense (i.e., no self dealing).
The duty of utmost good faith basically requires the fiduciary to at all times treat his dependents (homeowners) fairly and ffb equally.
In the context of sectional title complexes, home owners associations, retirement villages, shareholders and unit owners invest their trust in board members by casting proxies and ballots in their favor at the annual meeting. As a result of this, duly elected board members have the power to enact budgets and enforce house rules which profoundly impact residents' daily lives. In certain cases board members have the discretion to levy fines, withhold services, or deny access to building amenities, all of which confers upon them sweeping powers over shareholders and unit owners. HOA' power is yet another striking example of the pervasive control which board members have over the lives of their shareholders / home owners. Clearly, trust and confidence has been reposed on one side and there is a resulting superiority and influence on the other side. Thus, board members are fiduciaries to the shareholders and unit owners who have elected them to their position of power. Accordingly, individual HOA and home owner board members are strictly prohibited from self dealing to the detriment of their association and its constituent shareholders or unit / home owners. They are also required by law to treat their shareholders or unit owners with meticulous fairness and equality. - this was condensed and rewritten from information obtained elsewhere and criticism would be most welcome.

RE: RE: HOA -Home Owners Associaiton Pty Ltd

Annie Graeme replied on Mon, 05 Mar 2012 at 12:39

HOA and CPA (Consumer Protection Act)
How does homeowners of a HOA benefit from the CPA?
'juristic person' includes-
(a) a body corporate;
(b) a partnership or association; or
(c) a trust as defined in the Trust Property [Control] Act, 1988 (Act 57 of 1988); [note this provision]
'transaction' means-
(a) in respect of a person acting in the ordinary course of business-
(i) an agreement between or among that person and one or more other persons for the supply [in other words "sell, rent, exchange or hire in the ordinary course of business of the other person(s) for consideration"] or potential supply of any goods or services in exchange for consideration; or
(ii) the supply [in other words "sell, rent, exchange and hire in the ordinary course of business for consideration"] by that person of any goods to or at the direction of a consumer for consideration [note that a sale of immovable property is only a 'transaction' as defined if it is between a seller acting in the ordinary course of business]

Section 5 Application of Act
(1) This Act applies to-
(a) every transaction
(b) the promotion of any goods or services, or of the supplier (sic) [I suppose the word 'supplier' should have read 'supply']of any goods or services, within the Republic, unless-
(i) those goods or services could not reasonably be the subject of atransaction to which this Act applies in terms of paragraph (a); or
(ii) the promotion of those goods or services has been exempted in terms of subsections (3) and (4);
(c) goods or services that are supplied or performed in terms of a transaction to which this Act applies, irrespective of whether any of those goods or services are offered or supplied in conjunction with any other goods or services, or separate from any other goods or services; and
(d) goods that are supplied in terms of a transaction that is exempt from the application of this Act, but only to the extent provided for in subsection (5)....Show More

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