Property glossary
Homeowners association (HOA)
Also known as: home owners association, homeowners' association
An association of owners in a freehold estate or development that manages shared infrastructure and enforces rules through a constitution.
Definition
A homeowners association (HOA) is the governing body of an estate or development of separately owned freehold (full-title) properties that share common infrastructure such as roads, security, gardens and amenities. Unlike a body corporate, an HOA is not created automatically by statute — it is constituted either as a non-profit company under the Companies Act or as a common-law voluntary association governed by a constitution. Membership is usually compulsory and tied to ownership, and the HOA levies its members to fund maintenance and management of the shared areas.
In the South African context
HOAs are nonetheless community schemes under the CSOS Act (Act 9 of 2011) and must register with CSOS, lodge their governance documents and pay CSOS levies. An HOA constituted as a non-profit company is also governed by the Companies Act 71 of 2008. The conditions of establishment imposed by the municipality often make HOA membership and levy payment a registered condition of the title deed.
Example
A 120-home golf estate runs an HOA that charges each owner about R2 500 per month for security, road upkeep and clubhouse maintenance, with membership compulsory as a condition of the title deed.
Why it matters
The HOA's constitution, not the STSMA, governs its powers, so managing agents and trustees must work from the correct founding document when raising levies or enforcing rules.
Informational only — not legal advice. Confirm specifics against the current Act and your scheme’s rules.
Sources
- CSOS Act — Community Schemes Ombud Service Act 9 of 2011 — HOAs are community schemes subject to CSOS
- Companies Act — Companies Act 71 of 2008 — non-profit company form commonly used for HOAs