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Welcome to the world of community association living, where governance meets community, and where the roles you assume as directors and trustees can profoundly shape the lives of residents.
This guide is designed to provide you with a comprehensive understanding of how community associations operate, both from an organisational and interpersonal perspective.
Our aim is to equip you with the knowledge to:
- Grasp the role and function of a community association.
- Recognise the common traits of all community associations.
- Differentiate between sectional title and freehold communities
- Understand the significance of governing documents.
- Navigate the relationship between community members and their boards.
- Comprehend the rights and responsibilities of property owners within a community association.
Understanding community associations
Community associations are the backbone of residential property ownership in South Africa. When you purchase a property in a community scheme – whether sectional title or freehold – you automatically become a member of the community association, agreeing to adhere to its rules and uphold its standards.
Living in a community association involves a collective commitment to maintaining property values and enhancing the quality of life for all residents. This commitment often requires a degree of compromise and collaboration, as the community association exists to manage common areas, enforce reasonable restrictions, and preserve the community’s architectural integrity.
Purpose of a community association
The rise in popularity of community living is no coincidence. The benefits of living in a well-managed community are manifold.
Community associations are tasked with:
- Maintaining and enhancing common areas.
- Ensuring the security of the community.
- Facilitating communication among residents.
- Keeping accurate records and financial accounts.
- Enforcing agreed-upon rules and regulations.
- Protecting the interests of property owners.
- Providing amenities and services to residents.
- Encouragingsocialactivitiestofosterasenseofcommunity.
Types of community associations
In South Africa, there are two primary types of community associations: sectional title and freehold developments.
Sectional title: In these developments, a body corporate is established to manage the common areas, including the exterior maintenance of individual units. Ownership of the unit is vested in the body corporate.
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Freehold: Here, each owner has exclusive ownership of their property while also holding an interest in communal areas such as roads and parks, which are managed by the association.
Legal considerations in community associations
To ensure smooth and lawful operation, it is crucial that all directors and trustees understand the legal framework governing community associations. This includes national and local legislation, such as the Companies Act and the Sectional Titles Act, which define the creation and operation of community schemes. Compliance with municipal codes and regulations is also essential, covering aspects such as fire safety, health standards, and property taxes.
Governing documents
The governing documents of a community association form the legal foundation of the community.
These documents:
- Formalise the relationship between owners and the association.
- Detail the rights and obligations of both parties.
- Establish rules to protect property values and living standards.
- Provide a framework for managing the community and funding its operations.
The primary documents include:
- Recordedplanormap:Thisdefinesthelayoutofthecommunityand delineates common areas.
- Declaration, covenants, conditions and restrictions (CC&Rs):
These outline the rights of property ownership, specifying any restrictions and the association’s authority over community matters.
• Articles of association: If the association is incorporated, these articles bring it into existence, outlining its purpose and scope of responsibility.
• Bylaws: These set forth the procedures for running the association, including rules for meetings, elections, and the general powers of the board.
• Resolutions: Board resolutions formalise rules, regulations, and decisions, including policy, administrative, special, and general resolutions.
Rules, regulations and levies
Before purchasing property in a community scheme, prospective owners should familiarise themselves with the community’s levies, rules and regulations. Once they become members, they are bound by these rules and responsible for paying levies that fund the maintenance and management of the community.
Levies cover a wide range of expenses, including:
- Maintenance of common areas and facilities.
- Security services.
- Refuse collection and street lighting.
- Community events and insurance.
- Community governance and management.
Effective community governance relies on understanding the distinct roles and responsibilities of various stakeholders: property owners, the board of directors, committees, and the community manager. Each group plays a vital role in ensuring that the community operates smoothly.
Property owners: Owners are automatically members of the association and have the right to participate in governance by voting, attending meetings, and serving on committees. However, with these rights come responsibilities, such as adhering to community rules and paying levies on time.
The association board: The board is responsible for setting standards, creating policies, maintaining common areas, ensuring financial stability, and communicating with members. Board members must act in the best interest of the community, making decisions that balance the needs of the community as a whole with those of individual residents.
Board officers: Typically, the board includes a president, vice president, secretary, and treasurer. These officers are tasked with leading the community, managing finances, and ensuring that all administrative functions are carried out effectively.
Community management: Depending on the size of the community, management can be handled by the board, a management company, or a community manager. A professional community manager brings expertise in various areas, including finance, law and maintenance, to ensure that the community’s day-to-day operations run smoothly.
Rights and responsibilities of stakeholders
The success of a community association depends on the active participation and cooperation of all stakeholders. Owners have the right to a well-maintained community and the responsibility to comply with rules and pay levies. Board members must act ethically, make informed decisions, and encourage owner participation while protecting the association’s interests.
In conclusion, the role of directors and trustees in a community association is both challenging and rewarding. By understanding your responsibilities and the legal framework within which you operate, you can contribute to a thriving, harmonious community that benefits all residents.
