Cape Coastal Homes Logo
You are here: Cape Coastal Homes / Latest News / New Developments Building Penalties Buyers Do Not Wake Up Late

New Developments - Building Penalties : Buyers Do not Wake Up Late


New Developments - Building Penalties : Buyers Do not Wake Up Late

Typically when buying a stand in a proposed development, the agreement provides that the landowner shall erect a house within a stipulated period, failing which the homeowners’ association (HOA) may impose a penalty.

This ensures that the development reaches its investment value within anticipated time frames and safeguards other owners from the implications of continuous building operations. The period generally ranges from one to five years. 

Our courts have confirmed that an HOA, in its governing documents and rules, may validly impose such penalties provided they are not unreasonable. These nonetheless often dilute whatever profit the owner anticipated to make on a later sale. 

Therefore, when buying land in such a development, be sure to negotiate all of the HOA requirements regarding building time frames. It is in your best interests to obtain the assistance of your conveyancer before committing yourself in writing. 

For more information, contact STBB attorneys at

Author STBB
Published 15 Feb 2017 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Cape Coastal Homes website is accurate and up to date, Cape Coastal Homes makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.