Hephzibah Estate

Frequently Asked Questions

Everything you need to know about ownership, governance, levies, and life at Hephzibah Estate.

01

About Hephzibah Estate

Hephzibah Estate is unique. Unlike most residential estates, Hephzibah operates as a Hybrid Community Scheme, consisting of a Sectional Title Scheme administered by the Body Corporate, a Homeowners' Association (HOA) incorporated as a Non-Profit Company (NPC), and governance under several South African Acts and governing documents. This FAQ has been prepared to help owners, residents and prospective buyers understand how the Estate operates.

What is a Hybrid Sectional Title Scheme?

Hephzibah Estate is a unique Hybrid Sectional Title Scheme in which the Body Corporate owns and manages the mountain farm, common property, infrastructure, and shared facilities for the benefit of all Owners. Each Owner holds title to an individual Section (unit) and is a member of the Body Corporate. Every Section is allocated an Exclusive Use Area (EUA), which remains part of the common property but is reserved for the exclusive use of the relevant Owner in terms of the registered Sectional Title Conduct Rules. This hybrid structure combines individual ownership of Sections with the collective ownership and management of the Estate’s land, infrastructure, and amenities, ensuring that the Estate is managed as one integrated community.

When Hephzibah converted from a Share Block Scheme to Sectional Title, additional governance was required for estate-wide functions that extend beyond the normal responsibilities of a Body Corporate.

The HOA was therefore established to:

  • administer estate-wide assets;
  • coordinate long-term planning;
  • manage community governance;
  • maintain shared infrastructure where applicable;
  • provide continuity across the Estate.

Both organisations work together to ensure efficient management.

02

Ownership & Sectional Title

What is a Sectional Title?

Sectional Title is a form of ownership where:

  • you own your individual section (home or unit);
  • you automatically become a member of the Body Corporate;
  • all owners jointly own the Common Property.

Your ownership is registered in the Deeds Office.

03

Body Corporate & HOA

What is the Body Corporate?

The Body Corporate is automatically created when the first unit in a sectional title scheme is transferred. Every owner automatically becomes a member.

Its responsibilities include:

  • Maintaining Common Property;
  • Preparing budgets;
  • Collecting levies;
  • Insuring the buildings;
  • Enforcing Conduct Rules;
  • Appointing managing agents where necessary.

The HOA is a Non-Profit Company (NPC) established to manage matters affecting the Estate as a whole.

Typical responsibilities include:

  • Governance;
  • Strategic planning;
  • Estate administration;
  • Environmental management;
  • Estate security;
  • Community facilities;
  • Long-term projects.

Body Corporate

  • Created automatically by law
  • Manages the Sectional Title Scheme
  • Governed primarily by the STSMA
  • All owners are members
  • Focuses on Common Property and sectional title administration

HOA

  • Incorporated as a Non-Profit Company
  • Manages estate-wide governance
  • Governed primarily by the MOI and the Companies Act
  • Membership determined by the MOI
  • Focuses on broader estate management

04

Levies & Finance

What is the Levy Schedule?

The Levy Schedule explains how contributions are calculated.

Levies fund:

  • maintenance;
  • insurance;
  • administration;
  • utilities;
  • reserve funds;
  • security;
  • estate operations.

Owners are legally required to pay levies when due.

Levies ensure that the Estate can continue operating properly.

They fund:

  • maintenance;
  • repairs;
  • insurance;
  • administration;
  • staff;
  • reserve funds;
  • security;
  • community facilities;
  • compliance obligations.

Without levies the Estate cannot function effectively.

A Reserve Fund provides for future maintenance and replacement of major assets.

Examples include:

  • roads;
  • water infrastructure;
  • buildings;
  • electrical systems;
  • recreational facilities.

Reserve funds reduce the need for unexpected special levies. 

Note: The Reserve Fund is a dedicated savings fund established to ensure the long-term financial sustainability of Hephzibah Estate. It provides for the future repair, maintenance, refurbishment, and replacement of the Estate’s shared infrastructure, facilities, and assets in accordance with the approved 10-Year Maintenance Plan. Monthly contributions from the levy are paid into the Reserve Fund to ensure that sufficient funds are available when major maintenance or capital expenditure is required, reducing the need for unexpected special levies. The Board reports annually to Members on the status of the Reserve Fund and its compliance with the Estate’s financial planning requirements.

Financial responsibilities are allocated according to the applicable governing structure.

Generally, this includes:

  • Body Corporate operational expenses;
  • Reserve fund contributions;
  • Estate-wide operational costs;
  • Long-term infrastructure planning;
  • Capital projects.

Budgets are approved annually and monitored throughout the financial year.

05

Governance & Rules

What are Conduct Rules?

Conduct Rules regulate how residents live together respectfully within the Estate.

Typical rules cover:

  • Noise;
  • Pets;
  • Building activities;
  • Environmental protection;
  • Visitor & Contractors Conduct;
  • Waste management;
  • Use of recreational facilities.

The Rules apply equally to:

  • Owners;
  • Tenants;
  • Visitors;
  • Contractors.

The Body Corporate and the HOA each enforce the rules within their respective areas of responsibility.

Enforcement generally follows:

  • Investigation;
  • Written notice;
  • Opportunity to respond;
  • Decision;
  • Appeal where applicable.

The objective is compliance rather than punishment.

Hybrid estates require careful coordination because responsibilities may overlap.

Potential areas requiring clear governance include:

  • Maintenance responsibilities;
  • Budgeting;
  • Insurance;
  • Rule enforcement;
  • Infrastructure ownership;
  • Environmental management;
  • Recreational facilities;
  • Financial reporting;
  • Decision-making authority.

Hephzibah addresses these through clearly defined governing documents.

06

Common Property & Exclusive Use Areas

Who owns the Common Property?

The Common Property belongs collectively to all owners in undivided shares.

It is not owned by:

  • the Directors;
  • the Trustees;
  • the HOA;
  • individual owners.

The Body Corporate administers the Common Property on behalf of all owners.

Examples include:

  • roads
  • gardens
  • open spaces
  • dams (where applicable)
  • shared infrastructure
  • recreation facilities
  • services

An Exclusive Use Area is part of the Common Property that has been allocated for the exclusive use of a particular owner.

Examples include:

  • Mountain Farm
  • Roads
  • Infistructure
  • Shared facilities
  • Other Common Areas

Owners have the right to use the area, but ownership remains with the Body Corporate.

Yes.

Owners must obtain the required approvals before making alterations.

Depending on the work, approvals may include:

  • Architectural approval;
  • Body Corporate approval;
  • HOA approval where applicable;
  • Municipal approval where required.

07

Privacy & POPIA

What is POPIA?

The Protection of Personal Information Act protects personal information.

This means the Estate cannot freely distribute:

  • Owner contact details;
  • Email addresses;
  • Telephone numbers;
  • Personal records.

Information requests are handled in accordance with POPIA and applicable legislation.

Personal information belongs to individual owners.

The Estate must balance:

  • Members’ governance rights;
  • Statutory obligations;
  • Privacy rights under POPIA.

Information is therefore released only where legally permitted.

Yes.

Members may request access to financial and administrative records with advanced notice in accordance with the MOI and any administrative procedures adopted by the Board:

  • the STSMA;
  • the Companies Act;
  • the MOI;
  • POPIA;
  • Estate policies.

Certain confidential or personal information may be redacted where required by law.

08

Disputes & CSOS

What happens if disputes cannot be resolved?

Owners are encouraged to resolve disputes amicably.

Where necessary disputes may be referred to:

  • the Community Schemes Ombud Service (CSOS);
  • mediation;
  • arbitration where applicable;
  • the courts in appropriate circumstances.

The Community Schemes Ombud Service (CSOS) is a statutory body established to assist community schemes.

CSOS provides:

  • dispute resolution;
  • adjudication;
  • governance oversight;
  • education;
  • prescribed governance documentation.

09

Share Block Conversion

What happened when Hephzibah converted from Share Block?

The conversion modernised ownership by providing owners with registered title in the Deeds Office.

Benefits include:

  • individual ownership;
  • improved financing opportunities;
  • clearer legal rights;
  • increased property value certainty;
  • compliance with modern legislation.

The HOA was established to retain estate-wide governance that previously existed under the Share Block structure.

09

Share Block Conversion

What happened when Hephzibah converted from Share Block?

The conversion modernised ownership by providing owners with registered title in the Deeds Office.

Benefits include:

  • individual ownership;
  • improved financing opportunities;
  • clearer legal rights;
  • increased property value certainty;
  • compliance with modern legislation.

The HOA was established to retain estate-wide governance that previously existed under the Share Block structure.

10

Frequently Requested Documents

Where can I find the governing documents?

The following documents are available from the Estate Office or the Members’ Portal or on written request to the Hephzibah Office:

  • Memorandum of Incorporation (MOI)
  • Conduct Rules
  • Estate Policies
  • Levy Schedule
  • Annual Budget
  • Annual Financial Statements
  • Governance Documents
  • Forms and Applications

11

Memorandum of Incorporation (MOI) and Conduct Rules

What is the Memorandum of Incorporation (MOI)?

The Memorandum of Incorporation (MOI) is the constitutional document of the Hephzibah Estate Homeowners’ Association (HOA), a Non-Profit Company (NPC).

It establishes how the HOA is governed and sets out the legal rights, responsibilities and powers of:

  • Members
  • Directors
  • Committees
  • Office Bearers

The MOI is registered with the Companies and Intellectual Property Commission (CIPC) and must comply with the Companies Act.

The MOI generally includes provisions relating to:

  • Membership of the HOA
  • Voting rights
  • Appointment and removal of Directors
  • Board powers and responsibilities
  • General Meetings
  • Special and Ordinary Resolutions
  • Financial management
  • Governance principles
  • Conflict of interest
  • Director conduct
  • Amendment procedures
  • Dispute resolution

The MOI provides the governance framework under which the HOA operates.

Conduct Rules regulate the day-to-day living environment within Hephzibah Estate.

Their purpose is to ensure that all owners, residents, tenants and visitors can enjoy the Estate while respecting the rights of others.

Conduct Rules apply equally to everyone living in or visiting the Estate.

Typical Conduct Rules include:

  • Noise control
  • Pets and animals
  • Security procedures
  • Visitor access
  • Building activities
  • Architectural requirements
  • Speed limits
  • Environmental protection
  • Fire prevention
  • Waste management
  • Use of recreational facilities
  • Water usage
  • Exclusive Use Areas
  • Behaviour that may create a nuisance

The governing documents work together in the following order:

  1. South African legislation
  2. Registered Sectional Title documentation
  3. Memorandum of Incorporation (MOI)
  4. Registered Conduct Rules
  5. Estate Policies and Operational Guidelines
  6. Board Resolutions adopted in terms of the above documents

Where a conflict exists, the higher-ranking document prevails.

Yes.

The MOI may only be amended through the procedures prescribed in:

  • the Companies Act;
  • the existing MOI; and
  • any applicable special resolution requirements.

Members are notified before proposed amendments are considered.

Yes.

Conduct Rules may be amended in accordance with the Sectional Titles Schemes Management Act (STSMA), the Management Rules and the Estate’s governance framework.

Any amendments must follow the prescribed approval process before becoming enforceable.

The MOI and Conduct Rules:

  • protect property values;
  • provide certainty;
  • promote fairness;
  • establish governance standards;
  • define member rights and responsibilities;
  • minimise disputes;
  • ensure compliance with legislation.

They help maintain a safe, well-managed and harmonious community.

Yes.

Every member of the HOA is bound by the MOI, whether or not they have read it.

Yes.

Owners are responsible for ensuring that their tenants, family members, guests, contractors and visitors comply with the Conduct Rules.

No.

Directors are legally required to act within the authority granted by the MOI, the Companies Act and other applicable legislation.

No.

Conduct Rules cannot override national legislation.

If a rule conflicts with legislation, the legislation takes precedence.

Yes.

Owners may submit proposals for consideration in accordance with the procedures contained in the governing documents.

Current versions are available from the Estate Office and the Members’ Portal.

12

STSMA, Companies Act and Non-Profit Company (NPC)

What legislation governs Sectional Title?

The primary legislation includes:

  • Sectional Titles Act
  • Sectional Titles Schemes Management Act (STSMA)
  • Community Schemes Ombud Service (CSOS) Act
  • Companies Act (where applicable to the HOA)
  • Protection of Personal Information Act (POPIA)

These laws work together with the Estate’s governing documents.

Hephzibah Estate is a Hybrid Community Scheme.

Because it combines a Sectional Title Scheme with a Homeowners’ Association (NPC), different legislation governs different aspects of the Estate.

Each Act has a specific purpose and together they provide a comprehensive governance framework.

The STSMA regulates how the Sectional Title Scheme is managed.

It establishes:

  • the Body Corporate;
  • Management Rules;
  • Conduct Rules;
  • Trustee responsibilities;
  • budgeting and levies;
  • maintenance obligations;
  • governance of Common Property.

The STSMA applies to every Sectional Title Scheme in South Africa.

The Companies Act regulates the operation of companies in South Africa.

Because the Hephzibah HOA is incorporated as a Non-Profit Company (NPC), it must comply with the Companies Act.

The Act regulates:

  • Directors’ duties
  • Members’ rights
  • Corporate governance
  • Financial accountability
  • Meetings
  • Voting procedures
  • Company records
  • Amendments to the MOI

This NPC is a company established for a community benefit rather than to generate profits for shareholders.

At Hephzibah Estate, the HOA exists to:

  • manage estate governance;
  • administer community affairs;
  • support long-term sustainability;
  • protect common interests;
  • preserve the Estate for present and future owners.

Any income received is used for the benefit of the Estate and not distributed to members.

Although they are separate legal entities, they cooperate to achieve common objectives.

The Body Corporate manages:

  • Common Property
  • Sectional Title administration
  • Building maintenance
  • Levies
  • Insurance
  • Conduct Rules

The HOA manages:

  • Estate governance
  • Strategic planning
  • Community administration
  • Estate-wide projects
  • Environmental initiatives
  • Long-term sustainability

Together they provide integrated management of the Estate.

The Hybrid structure allows Hephzibah Estate to:

  • comply with modern legislation;
  • preserve estate-wide governance;
  • improve accountability;
  • clearly allocate responsibilities;
  • support long-term planning;
  • protect property values.

Every sectional title owner is automatically a member of the Body Corporate.

Membership of the HOA is governed by the MOI.

Yes.

Each Act applies to different aspects of Estate governance and both must be complied with where applicable.

No.

Each organisation must operate within the authority granted by law and its governing documents.

Neither may exercise powers that belong exclusively to the other.

The Body Corporate is responsible for managing and maintaining the Common Property on behalf of all owners, unless responsibility has lawfully been delegated or assigned through the Estate’s governance framework.

The Members of the HOA elect Directors in accordance with the MOI and the Companies Act.

The Trustees are elected by the members of the Body Corporate at a General Meeting in accordance with the STSMA.

Each performs a different legal function.

The Body Corporate administers the Sectional Title Scheme, while the HOA provides broader estate governance that extends beyond the traditional responsibilities of a Body Corporate.

Together, they help ensure that Hephzibah Estate remains financially sustainable, legally compliant and well managed.

Need More Information?

If your question is not answered here, please contact the Estate Office. Our aim is to ensure that every owner and resident understands how Hephzibah Estate is governed and how we work together to protect the value, safety and natural beauty of our unique community.

contact the estate office