HOAs are taking the matter of undesirable business practices to court
Two bodies representing homeowners’ associations are going to court, challenging whether their charging of agents’ fees constitutes an undesirable business practice or not.
Two bodies representing homeowners’ associations are going to court, challenging whether their charging of agents’ fees constitutes an undesirable business practice or not.
It has recently come to light that, in addition to the so-called ‘accreditation fees’ many HOAs are “forcing” agents to contravene the PPA by penalising sellers by refusing to release clearance certificates if the agent refuses to pay either their ‘fee’, or a fine for not being registered with the estate.
PPRA Chairperson Steven Ngubeni has strong words for illegal practitioners, and says the Competition Commission has been approached to deal with HOA ‘accreditation fees’.
While all estates are certainly not created equal in terms of amenities and property prices, they do all have HOAs, many of which have capitalised on their authority.
Property practitioners should be aware of the roles and responsibilities of homeowners’ associations (HOAs) as this information can be crucial to convince buyers of properties in estates and housing schemes.
In a recent industry survey, WeconnectU asked property managers of Bodies Corporate and HOAs a few important questions about value.