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Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2464
Experience:  Practicing attorney and conveyancer with 16 years post article experience.
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Can a homeowners association raise a special levy from the

Customer Question

Can a homeowners association raise a special levy from the person in order to finance litigation against that same person
Submitted: 18 days ago.
Category: South Africa Law
Expert:  Freddie Lombard replied 18 days ago.

Good afternoon,

Thank you for your question. I will try to assist you in answering it today but please feel free to ask as many follow up questions as you like until you are 100% satisfied.

This is indeed an interesting question, and the answer is that it depends on whether the constitution of the HOA allows the HOA to raise a special levy in order to finance litigation at all.

If the constitution does allow it, then it surely will apply to any litigation and that would include litigating against a member of the HOA. Any special levey is payable by all owners (members of the HOA), and so, yes, in effect the HOA can indeed raise a special levy against a member to litigate against that member.

Off course, the member will then apply to Court to be absolved from the payment of that specific levy in the event that the member is successful in its litigation against the HOA, and also ask to be absolved from any further special levy which may have to be levied in order to pay a cost order made in the member's favour.

I hope this answered your question.

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Regards