HOA's - How Do They Work? (Howe: real estate, foreclosures, condominium)

[mistergus75]

In light of the guy fighting his neighborhood HOA (wrongly, I believe) to fly his flag on a flagpole instead of his house, perhaps someone can teach me a little about HOA's and how they work.

It seems like virtually all the homes we're looking at on har.com have HOA's, and the fees are spelled out for each house.

Is it necessary to accept membership in the HOA to buy a house? Can one buy if he refuses to sign a statement accepting the HOA, and agreeing to it's standards and rules? If one has the money to buy a house, but doesn't want to submit to the HOA, by what legal authority is his purchase of that home refused?

I'm really not trying to start an argument thread about the pros and cons of HOA's. In fact, I hope those so inclined won't respond.

I'm just curious about how they work...

[CptnRn]

Typically if you buy in an area with an HOA you have no choice but to accept their rules. Make sure you get them and read them, they are rarely that onerous in my experience. If you want to buy a home in an area that has nice shared community amenities, landscaped boulevards, community swimming pool, play area, tennis court, etc. you pretty much have to belong to an HOA who is then responsible for maintaining those areas with the fees you pay, similar to a condominium project. Buying a home there obligates you to live by the HOA rules, which are pretty much intended to require that homeowners maintain their property, and not build any additions or structures that are out of keeping with the character of the neighborhood. We have lived in a subdivision with an HOA for 8" years now and had no problems with it. I'm glad there is someone looking after the upkeep of the area and reminding the few laggards around to mow their lawn and maintain their houses. Seems like there are always a few who won't do it unless someone keeps after them.

In my experience, most HOA's start out with a board consisting of the subdivision developers representatives, and are eventually turned over to the neighborhoods, who elect their own representatives to the board. Typically they hire an HOA or real estate management company to manage the day to day affairs of the HOA.

I do think that from what I have read that some HOA's abuse their power, and I would be in favor of the State limiting the powers that they have. They should be able to put a lein against a property for non-payment of fees or fines, but not be able to foreclose on the property, and put a claim in a person's credit report, that would insure they would get paid eventually whenever the property sold.

[GettaClue]

You can no more decline to live under the rules of an HOA you buy into than you can decline to live under the laws of the city, county, state and country you live in. It's part of the deal. Your property is encumbered by membership in the HOA and that encumbrance runs with the land.

Increasingly, it's local governments who demand HOA's be in place. It gets the local government out of having to provide most services for residents, while still allowing them to collect the taxes.

[TheEconomist]

The HOA is created by something that is written into the deed when the developer first started selling lots to homeowners. You've heard the term "deed restrictions" I'm sure. That is where it comes from. The HOA is created by private contract and is not a government agency. Your deed to your home is restricted because the original developer carved out restrictions in the deeds used to convey ownership to the home owners.

It makes sense for the developer to do this because people want to live in neighborhoods that have standards and the developer wants to create the highest value for his investment. The resulting Home Owner's Association is the end result when the private sector wants to set rules to govern itself.

The irony of the imbecile marine is that instead of fighting for freedom, he is seeking to use government to take away the freedom of people who have entered into private agreements as to what to do with their own private property.

Some people prefer to live in neighborhoods without HOA's. That is their choice. However, to move into an HOA neighborhood and then not abide by the very reasonable rules of the neighborhood is pretty ridiculous.

[TheEconomist]

Originally Posted by CptnRn

I do think that from what I have read that some HOA's abuse their power, and I would be in favor of the State limiting the powers that they have. They should be able to put a lein against a property for non-payment of fees or fines, but not be able to foreclose on the property, and put a claim in a person's credit report, that would insure they would get paid eventually whenever the property sold.

What you are actually advocating is that the power of the state be limited. It is only the state that can place liens on houses and enforce foreclosures.

[ethanw]

Data is power, see bellow. HOA WILL foreclose your house if not careful with their abuse of power.

HOAdata (http://pages.prodigy.net/hoadata/ - broken link)

http://pages.prodigy.net/hoadata/hoarank07.pdf (broken link)

Originally Posted by CptnRn

I do think that from what I have read that some HOA's abuse their power, and I would be in favor of the State limiting the powers that they have. They should be able to put a lein against a property for non-payment of fees or fines, but not be able to foreclose on the property, and put a claim in a person's credit report, that would insure they would get paid eventually whenever the property sold.

[GettaClue]

Originally Posted by ethanw

Data is power, see bellow. HOA WILL foreclose your house if not careful with their abuse of power.

Yes they can foreclose if you don't pay your dues or fines.

And the county, MUD or school district will foreclose if you don't pay your property taxes to them.

The state and the IRS will foreclose on your business or other assets if you don't pay your share to them too.

A city or county may also foreclose, fine you or otherwise attach your property if your don't maintain it in a manner consistent with local law.

None of these things necessarily equate to abuse of power on the part of the HOA or other entity. But they almost inevitably equate to failure of the property owner to pay their share or to otherwise take responsibility for their obligations.

[Grunn]

It's simple

The HOA tells you what to do

Then you comply

If you choose not to then you bend over and get f****d in the ass*

*Have a nice day^

^God Bless America

[GettaClue]

What exactly is your definition of a Nazi in this context? Someone who enforces a rule with which you personally disagree? If so, that term is just offensive.

An HOA is really not all that different from our American form of government. You have services, dues (taxes), rules (laws), enforcement, penalties and elected representatives. You have the right to see records, to petition for change and to run for office.

Do some people in government and on HOA boards overreach or even do blatant wrong? Certainly! Do some citizens and residents push limits constantly, blatantly violate laws/rules and shirk responsibility? Absolutely! Human beings do indeed have away of behaving selfishly and imperfectly, which in my book is a very good reason to have governments of various levels and yes, HOA's.

[cheryjohns]

There are some that are obnoxious - but the majority (especially those run by professional companies) are only enforcing rules that make sense. You can't paint your house purple, you can't park a semi in front, etc.

There are a few subdivisions without one - and it usually shows.