Here at WPM, we manage different types of Community Schemes. We manage Sectional Title, Full Title, Mixed use, Voluntary Associations & Schemes created in terms of Municipal By-laws and we have to take cognizance of and consider law changes and court decisions in order to guide our clients accordingly.
A 2026 Gauteng High Court ruling (Koster v Centurion Homeowners Association (NPC) and Others (2024/091277) [2025] ZAGPPHC 1225 (11 November 2025) established that homeowners cannot accept benefits from a Homeowners’ Association (HOA) settlement—such as approved building plans— while rejecting the attached conditions, preventing “selective-picking” of terms. If you accept the benefit, you are bound by the full settlement, including cost clauses.
In a recent High Court application a dispute began when a homeowner clashed with the Homeowners Association that she is a member of, over the revised building plans. When the HOA initially refused to approve her plans, the owner launched a High Court review. But once litigation was underway, the HOA changed course and approved the plans and delivered them to the owner under a formal Rule 34 settlement offer, marked “without prejudice” and expressly excluding any contribution to her legal costs.
The owner accepted the benefit, using the approved plans to secure municipal approval and ultimately obtain the occupation certificate however the owner continued litigating, arguing that the HOA’s approval was an independent administrative act — not part of the settlement offer.
In rejecting the argument, it held that the approval was clearly tendered as part of a conditional settlement, and the fact that the plans were stamped before delivery did not magically detach them from the terms of the offer.
“In simple terms, you can’t take the performance and reject the terms. By the time the matter was heard, the dispute was effectively over – the owner had already obtained the relief sought.
The court dismissed the review as moot and made no order as to costs, noting that awarding costs in these circumstances would encourage opportunistic litigation and undermine the purpose of settlement procedures.
Key Aspects of the Ruling:
No Partial Acceptance: Homeowners must honor all conditions of a settlement if they take the benefits, reinforcing that they cannot continue litigation after receiving what they wanted.
Substance Over Spin: The court will look at the substance of a settlement rather than how a party tries to reframe it, such as calling it an “administrative concession”.
Contract Law Applies: HOA decisions are governed by contract law and the rules of voluntary associations, not public administrative law.
Without-Prejudice Rules: The ruling warns against disclosing “without-prejudice” (confidential) settlement offers in court.
This decision aims to protect the integrity of settlement processes in community schemes, ensuring that settlements are respected and reducing “sneakiness” in legal disputes.
-Renard Scheepers HOD – WPM Legal Department