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Sale of Property in a Development
SALE OF PROPERTY IN A DEVELOPMENT SUBJECT TO A HOME OWNERS ASSOCIATION. The sale of land agreement from the original developer of the cluster development or gated community, generally contains a condition that the purchaser must become – and remain a member of the association. It contains a provision that the purchaser is obligated to make future purchasers aware of the association requirements. Sellers of such property should ensure this clause is inserted in the sale agreement.
HOME OWNERS ASSOCIATION COMPARED TO A BODY CORPORATE A body corporate is established and falls under the Sectional Titles Act. A body corporate comprises of all owners of units within the complex. They are responsible for enforcement of rules, administration and management of the common property. The body corporate must establish an administrative fund which covers costs for repair, maintenance, insurance and management of the common property.