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KZN


            KwaZulu-Natal
            Business Chambers Council
        REGULATION OF ROADS IN SECURE ESTATES                                                                                     PROPERTY



                                      Country Club Estate Management   MECCEMA Two to enforce the     e Appeal Court held that the   SERVICES
                         Robin Westley -
                         Partner, Cox   Association Two (RF) (NPC)   rules that were challenged by   public road status of the roads
                         Yeats Attorneys  and Others, Case Number    Singh. Accordingly, Singh      within the Estate carry with it     ox Yeats boasts some of the
                                      AR575/2016 handed down on      appealed the First Judgement   legal consequences arising out of   C  top property lawyers in
                                      17th November 2017. is was an   which appeal was heard by a full   public law and the regulatory   South Africa. eir
                                      appeal of the decision of Topping   bench of the KwaZulu-Natal High   regime is a statutory one, arising   specialist team combines their
                                      AJ in the KwaZulu-Natal High   Court (the ‘Appeal Court’).    from the NRTA. MECCEMA Two    knowledge and experience of
                                      Court (the First Judgement). e                               could have sought permission   property law and conveyancing
                                      judgement has proved to be of     e primary focus of the     from the MEC, which it did not.
                                      great interest to the owners   judgment of the Appeal Court   e failure of MECCEMA Two to   with innovative ideas to maximise
                                      associations of the various secured   centred around the Road Rules.    seek permission from the MEC   prot potential. Services include:
                                                                                                                                  •  Acquisition, sale and transfer
                                      estates around South Africa as it  e counsel for Singh argued that   must render the rules and the     of commercial, industrial and
                                                                                                    contractual arrangement with the
                                                                     the roads on the Estate were
                                      is the rst major judgement that
                          O     ver   questions the freedom of the   public roads. In terms of the   members illegal. To the extent that     residential properties
                                                                                                                                  •  Leases, mortgages and
                                the
                                                                     NRTA, it is only the national
                                      owners associations to regulate the
                                                                                                    the Road Rules seek to authorise
                                                                                                                                   servitudes
                                past
                                      occupy properties on the estate
                                                                     Minister) who may prescribe
        couple of decades, the number of   conduct of persons who own or   Minister of Transport (the   MECCEMA Two to impose a   •  Retirement home schemes
                                                                                                    speed limit on the roads within
        secure estates in South Africa,   or access the estate from time to  signs, signals and markings on   the Estate, MECCEMA Two has   •  Sectional title schemes
        both residential and commercial/  time and the right of owners   public roads and who may   no authority to do so. e     •  Sectional title arbitration
        industrial, have increased    associations to regulate conduct   prescribe speed limits for the   position would be dierent if a   •  Share block developments and
        exponentially. is has been   on privately owned roads that may   various categories of roads. e   determination were made by a     conversions to sectional titles
        largely driven by security concerns   nevertheless be subject to the   NRTA provides that the MEC may   person authorised to do so under   •  Time-sharing operations
        because of the escalating crime   National Road Trac Act, 93 of   authorise an association or club  the NRTA but neither the Minister   •  Town planning, appeals and
        rate in the country.          1996 (the NRTA).               to display any road trac signs,   nor any delegated authority had     rezoning applications
                                                                     subject to such conditions as the   done so.                 •  Township development and
          Each estate is administered by     ree categories of the conduct   MEC may determine. Accordingly,                       subdivision of land
        an owners’ association, which is   rules of the Mount Edgecombe   the counsel for Singh argued that     In conclusion, the Appeal Court   •  The impact of VAT on property
        either established as a non-prot   Country Club Estate Management   MECCEMA Two had no power to   held that the Road Rules were in    transactions
        company, with a memorandum    Association Two (RF) (NPC)     regulate and control trac on the   direct conict with the relevant   •  Owners Association/Communal
        of incorporation governing the   (MECCEMA Two) were          public roads in the Estate.    provisions of the NRTA. No      Schemes establishment
        functioning of the association or   challenged by Nimesh Singh                              authorisation had been sought by   •  Operational issues
        as a common law association, with   (Singh), namely the ‘Road Rules’,     e counsel for MECCEMA   MECCEMA Two nor been   •  Dispute resolution
        a constitution governing the   which permit MECCEMA Two to   Two did not dispute that the roads   granted by the Minister.
        functioning of the association.    control the roads on the Mount   on the Estate were public roads for   Accordingly, the Appeal Court     e Cox Yeats Property Services
        e association in turn        Edgecombe Country Club Estate   the purposes of the NRTA but   held that the Road Rules were   Team have combined, 131 years of
        promulgates rules which regulate   Two (the Estate) and impose   argued that the relationship   invalid, but the invalidity was   legal expertise and experience.
        the conduct of persons who own   ‘speeding nes’, the ‘Contractor   between MECCEMA Two and all   suspended for a period of twelve   Besides oering standard legal
        properties on the estate, occupy   Rules’ which restrict the right of   owners on the Estate was based on   months to aord MECCEMA Two   property services such as
        properties on the estate or access   an owner to choose a contractor   contract that was freely and   an opportunity to obtain the   Conveyancing Transactions and
        the estate from time to time. e   or service provider of his or her   voluntarily entered into and that   necessary authorisations and/or   Mortgage Bond Registrations, the
        rules are enforced by the     choice to perform work on the   the rules of the Estate operated as   consents under the NRTA.  team is also highly experienced in
        association and are oen a source   owner’s property within the Estate   a parallel system to the statutory               Estate property development, as
        of conict between the association   and the ‘Domestic Rules’ which   regime prescribed by the NRTA.      MECCEMA Two have the right   well as Town Planning, appeals
        and the individuals who fall foul   impose restrictions on the   Accordingly, MECCEMA Two   to appeal the judgement and we   and rezoning applications.
        of the rules.                 domestic workers employed by   did not “purport to utilise, invoke   understand that the Association of
                                      owners and residents on the Estate   or usurp the powers under the   Residential Communities (ARC),     e senior member of the
          is was the case in the recent,   relating to their working hours   NRTA” and as such did “not   which represents a number of   Property Services Team, Roger
        yet unreported, decision of the full   and their movements into and  consider it necessary to seek any   owners' associations around  Green, has been elected Lawyer
        bench of the KwaZulu-Natal High   out of the Estate.         authorisation in terms of the   the country, is considering   of the Year in Real Estate Law
        Court at Pietermaritzburg in the                             NRTA for the enforcement of its   intervening in the proceedings.  in South Africa for 2018 by the
        matter of Nimesh Singh and      In the First Judgement, Topping   private rules”.                                         global publication Best
        Another v Mount Edgecombe     AJ upheld the right of the                                                                  Lawyers.

                                                                                                                                    e Property Team consists
                                                                                                                                  of Partners Roger Green, Robin
                                                                                                                                  Westley, Tina Halstead, Lazelle
                                                                                                                                  Paola, Carol McDonald, abo
                                                                                                                                  Vilakazi and Associate Kim
                                                                                                                                  Edwards. If you require assistance
                                                                                                                                  or advice regarding property
                                                                                                                                  matters, contact us on
                                                                                                                                  031 536 8500 or email
                                                                                                                                  rgreen@coxyeats.co.za
                                                                                                                                  www.coxyeats.co.za






        Roger Green                           Robin Westley                         Carol McDonald





















        Tina Halstead                         Lazelle Paola                         abo Vilakazi                         Kim Edwards





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