Double trouble: understanding dual management, HOA’s and bodies corporate

Can a single property fall under the management of both a Homeowners’ Association (HOA) and a Body Corporate (BC)? And more to the point can an owner be required to pay levies to both?

The short answer is yes, but with important qualifications.

We recently received a query from an owner grappling with this very issue. They wanted to understand why their sectional title unit appeared to fall under two management structures — both with financial obligations. This raised a broader question we hear more often than you’d expect: how do layered schemes actually work in practice?

Let’s unpack it.

Layered schemes are common in modern estates and mixed-use developments, where a sectional title scheme is nested within a larger development governed by a master HOA or master property owners’ association.

In this structure:

• The HOA or master association manages shared amenities across the broader estate including roads, gatehouses, perimeter fencing, green spaces, clubhouses, etc.
• The body corporate manages the internal common property of a specific sectional title scheme — building exteriors, shared driveways, roofs, and the like.

Paying levies to these two structures should not be a duplication of levies, though it may feel like it to the uninformed owner. It’s more like contributing to both your local municipality and your complex — they serve different, but sometimes overlapping, functions.

The owner of a unit in such a development is, by design, subject to two layers of governance and two levy contributions: one for the wider estate and another for their specific scheme.

Yes — and they often do.

The structure is usually established at the time the sectional title register is opened. Developers can — and frequently do — craft quite bespoke layered models. In these cases, it’s not simply a question of a body corporate operating under the Sectional Titles Schemes Management Act^[1], but whether powers and functions have been divested or reallocated in favour of the umbrella HOA.

This can happen through:

• Restrictive conditions of title registered against the land;
• Town planning approval conditions imposed at the township establishment stage;
• Memoranda of Incorporation (MOIs) or constitutions of the HOA or master association;
• Rules of either the HOA or the sectional title scheme; and
• Agreements entered into between the developer, the HOA, and body corporate.

What’s important to note is this: just because a body corporate thinks it has a certain power under the STSMA, doesn’t mean it actually does. In some schemes, certain management powers are shifted away from the body corporate — either wholly or in part — to the HOA. This could relate to architectural control, security, landscaping, or even financial or administrative management or decision-making powers.

Here’s where clarity matters most. You need to review all the scheme’s founding and governance documents:

• Title Deeds, these often indicate whether an owner is automatically a member of the HOA.
• Certificate of the Registered Sectional Title Scheme or Sectional Plan – sometimes contains conditions relating to membership or levies.
• HOA Constitution or MOI – spells out obligations of membership and levy contributions.
• Sectional Title and HOA rules – may clarify (or contradict) perceived powers and responsibilities.
• Township Establishment Conditions – may impose certain community-wide responsibilities on owners or bodies corporate.

In some cases, it’s not the owner who is a member of the HOA – it’s the body corporate itself. In these cases, the body corporate pays a single levy on behalf of all owners from its own levy income. In others, owners are direct members of both entities and billed separately. It would be a matter of fact determinable on review of the above documents.

Without a clear understanding of how the scheme is structured, confusion and conflict are inevitable. Owners may feel they’re being unfairly charged. Trustees may unknowingly exceed their powers. Managing agents may struggle to mediate between the layers.

And in legal terms, operating in the wrong lane – as a trustee or managing agent – could expose your scheme to procedural challenges, reputational damage, and in some cases, financial claims.

If you’re an owner, trustee, or managing agent in a layered scheme, here’s what you should do:

1. Review your property’s title deed — and the development’s township conditions if available.
2. Obtain the HOA’s constitution or MOI — and check who the real members are: owners or the body corporate.
3. Understand your scheme’s rules — and whether any powers have been curtailed, delegated or altered.
4. Clarify the levy structure — and make sure owners are told what they’re paying for, and to whom.
5. Engage legal help if in doubt — particularly where governance documents appear to conflict.

Being part of a sectional title scheme within a larger estate doesn’t mean you’re being over-managed or double-billed. It usually means the scheme was structured this way intentionally — by the developer, and approved by the relevant authorities.

But without understanding the design – or checking whether that design has evolved correctly over time – it’s easy to mistake layered governance for inefficiency or overreach.

The real issue isn’t duplication — it’s clarity. And that starts with reading the fine print.

This is where education becomes empowerment — and platforms like the Training Academy for Community Schemes (TRACS) plays a vital role. TRACS offers accessible, high-quality training that helps owners, trustees, and managing agents understand their rights, responsibilities, and the legal landscape of sectional title and community scheme living. Whether you’re trying to make sense of schemes, levy structures, or governance documents, TRACS equips you with the knowledge to ask the right questions, avoid costly misunderstandings, and participate more confidently in the management of your property.

Our legal advisors are ready to assist you with any complex queries. Contact us today to get started.

FOOTER

^[1] Act 8 of 2011.