What you need to know about Homeowners Association (HOA) rules and your responsibilities

When you buy a property in an estate governed by a homeowners association (HOA), you automatically become a member of that HOA.

This means that the rules of the estate are created, updated, and approved by you and your fellow homeowners – provided they are lawful and properly adopted. These regulations are stipulated in your MOI or constitution and apply to all residents.

For buyers entering an estate for the first time, it is essential to request and review several key documents before signing an offer to purchase. These include:

• the latest AGM minutes;
• annual financial statements;
• details of any upcoming special levies;
• most importantly, the management and conduct rules.

These rules exist to protect the security of the estate, the safety of residents, and ultimately the long-term value and capital appreciation of your property.

One of the many discussed rules in many estates is speeding – understandably so, with the increase of deliveries into estates and work-from-home models, all of which increase the traffic within the estate, not forgetting that estates are homes to children, pedestrians, cyclists, retired residents, pets, domestic workers, and, increasingly, high-performance vehicles. Speeding endangers lives and can be costly, even when you are not the driver.

Below is a recent example that highlights why conduct rules matter.

A recent incident in an estate in Midrand sparked national conversation after residents raised concerns about new speed-enforcement cameras and penalties of up to R4,000 – even when the speeding driver was a courier delivering a parcel.

This raised a crucial question about what the conduct rules stipulate: 

Can estates legally enforce speed limits with cameras and hold residents liable for their visitors’ violations?

The answer lies in understanding how estate governance works.

Many residents assume that public road traffic laws apply inside estates, but the legal position is different. Once you enter the estate, estate rules govern behaviour – and those rules form part of a binding contract.

What the law says: the SCA has already ruled

A landmark 2019 Supreme Court of Appeal decision – Mount Edgecombe Country Club Estate Management Association v Singh – sets out the legal position. The court held that:

• Estate roads are private roads, not public roads. 

As long as the speed limit does not exceed the limits of the National Road Traffic Act (NRTA) and AARTO, then HOA rules are contractual and enforceable, including internal speed limits.

• Residents can be held liable for their visitors and service providers.
• Estates may enforce conduct rules, apply penalties, and recover them through levy accounts – as long as those powers are written into the estate’s governance documents.

Louise Martin, CEO of Estate Living, notes: ‘As the largest and most comprehensive platform for information on secured residential housing communities and community schemes, Estate Living has seen hundreds of governance models over the past 15 years. The estates that thrive – in safety, reputation, and property values – are those where rules are clearly defined, consistently enforced, and well communicated.’

Martin notes: ‘Residents should understand that estate living is a partnership: your rights are protected, but your responsibilities are equally important. When rules are followed and enforcement is fair, estates deliver the lifestyle, security, and long-term capital appreciation that buyers expect.’

How major estates apply these rules

Many of South Africa’s estates already enforce speed limits and hold residents accountable for their invitees; the rules are stipulated in the MOI or Constitution, and are enforceable as long as they are fair and do not exceed the speed stipulated for residential roads by the National Road Act. The general consensus is that it is fair to slow vehicles down due to the nature of the environment. 

Why are these ‘penalties’, not ‘fines’

Estates impose contractual penalties, not criminal fines. This means:

• Penalties must appear in the MOI or Conduct Rules.
• they may be added to levy accounts and recovered like other debts;
• residents have the right to notice and appeal.

These are not municipal fines – they’re contract terms you agreed to when buying in.

How estates can reduce conflict

Martin says: 

• clear authority – rules must define limits, penalties, and recovery processes;
• transparent schedules – penalty tables should be shared openly;
• fair process – notice and appeal mechanisms must be in place;
• strong communication – signage and resident updates are essential.

Practical advice for residents and future buyers 

• Know your rules – read conduct rules and penalty schedules.
• Brief couriers – add notes to online orders about estate speed limits.
• Dispute properly – use internal channels before escalating to CSOS.
• Understand liability – if a guest or courier speeds, the estate may lawfully charge you.

Buying into an estate not only means buying a lifestyle and protecting that lifestyle, it means buying into a contract. Rules and enforcement protect the lifestyle, security, and capital value that make estate living so desirable.