What are the features of a community or neighbourhood association?

Developers choose whether to set up a community or neighbourhood association based on the type of association they prefer, and any plans they have for the future expansion of the association property.

Community and neighbourhood associations generally include a mix of free-standing townhouses, strata complexes, recreational and other facilities, such as swimming pools, tennis courts and gardens. They also include services such as roads, power and water.
Owners of townhouses and lot owners in strata complexes can use the recreational facilities and services.

Recreational facilities, roads and services are owned, maintained and insured by the association whether it be a community or neighbourhood association. Strata complexes are owned, maintained and insured by lot owners in each strata complex through the payment of levies. Townhouses are maintained and insured through each owner’s financial resources.

The cost of upkeep and insurance of recreational facilities, roads and services is paid for by the owners of free-standing houses and lot owners in strata complexes through levies imposed through the association.

Townhouses built within an association must comply with building and landscaping standards, as set out in the community or Association plan. One fundamental aim of any association is to provide uniformity of appearance amongst the townhouses.

Why should an inspection of the records of a community or neighbourhood association be obtained?

Buyers of townhouses in a community or neighbourhood association will principally want to know whether the vendor/seller of the townhouse has been accused of being in breach of building or landscaping standards; this can be identified in our pre-purchase building report. Two examples of such breaches are: (i) the construction of an unauthorised awning or flagpole; and (ii) the installation of an unauthorised water feature, both of which may require expensive removal costs, which will detract from what the buyer thought he/she was buying.

Buyers of townhouses and lot buyers of strata complexes in community or neighbourhood associations will want to know the following:

1. Are there plans to strike a special levy to upgrade or rectify part of the association property? For example, an expensive upgrade of the swimming pool is proposed to be paid for by special levies imposed on the owners.
   
   
2. Are there plans to remove a recreational facility? For example, the proposed removal of a swimming pool may be concerning to a buyer who plans to make extensive use of it.