Understanding estate rules

Community schemes, residential estates, retirement villages, mixed-use developments, multigenerational communities, or golfing estates – whatever name you give them, choosing the right community for your lifestyle can be a daunting task, especially if you’re navigating these waters for the first time.

But here’s the thing: you don’t need to be a first-time homeowner to find value in what follows. You just need to be someone who might, let’s say, inadvertently break a rule or two. So, if you’re that person – ready to buy or rent in a community scheme – let’s talk about some best practices to avoid conflict, unnecessary penalties, disappointment, and even a lack of return on your investment.

Rule #1: Don’t expect to change the rules (or the community)

Entering a community scheme is a bit like entering a relationship – don’t go in thinking you can change them. Community schemes, like partners, don’t (voluntarily) change. The rules in the memorandum of incorporation (MOI) and constitution, or the conduct rules in sectional title schemes are there when you move in and are likely to stay that way. Misunderstanding or misinterpreting these rules can lead to a world of conflict and expense, so take the time to read and understand them.

Real-life rule-breaking: pets’ edition

I recently looked at a property in a sectional title scheme. My first question: ‘Does this development allow pets?’ The property practitioner confidently assured me that my small dog would be just fine. But when I requested a copy of the rules and the latest AGM report, Rule #2 in the conduct rules was a firm ‘NO PETS’. Not even a little side note about ‘with trustee permission’. Can you imagine the ongoing battle with fellow homeowners for years until little Jimmy (the dog) finally takes his journey across the River Styx?

The struggle is real: pets, parking and pergolas

Whether it’s pets, parking, or pergolas, the struggle is real. Buying in a golf estate? Here’s an extra wrinkle – if you’ve got kids, know that the golf course is out of bounds for non-golfers from morning till sunset. So, that beautiful green space right outside your door? It’s off-limits for playtime. Logical, right? But if you haven’t read the rules, it might come as a shock when your kids are pressing their faces against the glass, longing to run free.

And here’s a tip from personal experience: don’t assume that you can go for a run on those picturesque golf cart pathways after sunset. They might not be lit, leaving you jogging in the dark, or worse, hitting the road outside the estate.

Why aren’t people reading the rules?

If the management and conduct rules are so crucial, why aren’t people reading them? Misunderstanding and misinterpretation often play a role. Sometimes, it’s because rules haven’t been enforced consistently. Maybe the previous board of trustees was lackadaisical, and when a new board comes in and tries to enforce them, they face resistance from homeowners.

Common conflict zones

Here are some areas where conflict often arises:

• Property renovations: If renovations aren’t approved by the architectural committee, or don’t align with the guidelines, selling the unit later could be a nightmare without that coveted clearance certificate from the HOA.
• Speeding: Speeding in estates is a serious issue. It not only endangers lives but can also tarnish the estate’s reputation, potentially affecting property values.
• Teen entertainment: As your kids grow, their need for entertainment evolves. Consider whether the estate offers amenities like sports facilities, high-speed internet, and access to social spaces that can cater to older children.
• Golf carts and e-scooters: If you live near a school, you might think, ‘Great! The kids can take themselves to school on a golf cart!’ But check the rules – at what age can they drive? Are golf carts or e-scooters even allowed? And what insurance do you need?
• Wastewater runoff, boundary walls, and pesky pets: Disputes over these issues are almost inevitable. Whether it’s tree roots invading your space or a neighbour’s dog using your lawn as its bathroom, conflicts will lurk around every corner.

The big one: short-term rentals

Thinking of buying a unit as an investment property? Be sure – 100% sure – that short-term rentals are allowed. Check if it’s explicitly stated in the sales deed. Some estates might permit short-term rentals, but ‘short-term’ could mean a minimum stay of two or three weeks. That could seriously affect your property yield, especially in off-peak seasons.

The bottom line

Estate conduct and management rules are there to protect homeowners’ safety, maintain high property values, and ensure that you get the maximum return on your investment. Once you realise that these rules are designed by you, for you, to protect what’s yours, your chances of accidentally breaking them drop significantly.

So, here’s to living harmoniously – and within the rules – in your new community.