HOA Threats: What to Do When They Sue You

Envision a gated neighborhood with perfectly kept roads and sidewalks–within such an idyllic scene you would never guess residents live in fear of HOA threats. Trees hang over sidewalks ever so slightly, with dark green shrubs manicured to the tee, and seasonal flowers blooming in technicolor. Some residents are probably headed to the gym which is decked out with everything from the treadmill to a dedicated area for yoga or those trendy spin classes—while others are looking forward to a swim in the clear blue waters of the development’s pool. Most likely there is a well-appointed clubhouse too, perfect for weekend get togethers, parties, and even wedding receptions.

HOAs Are Driven by Fees & Rules

Most HOAs work hard to offer an attractive, comfortable, and secure atmosphere in which willing homeowners can live. Along with this though come fees, and sometimes, lots of rules; in fact, while homeowners enjoy the neighborhood and all it offers, they often chafe under restrictions too—from what color they can paint their home to whether they can hang the laundry out to air dry on a sunny day. Because of this, it is always recommended that before buying a home in any development, you should research the HOA, their fees, and find out what type of reputation they have.

It is a well-known fact in real estate that there are good HOAs as well as those that can be downright nightmarish to deal with. Consult with an experienced real-estate attorney like Shane Coons before signing any contracts with the HOA.

Do Not Underestimate the Power of the HOA

In your development, the HOA (usually founded as a non-profit corporation) does wield surprising power. In crossing them, you will find that most of that power is wrapped up in the ability to fine you. Follow the rules, or you may find yourself being penalized. Pay your fees—or you could even find yourself being sued or foreclosed on. While the idea of losing your home over HOA fees sounds extreme, it is possible. Do not underestimate the power they have over your property. If you find out that you are being sued by your HOA, contact an attorney skilled in defending HOA cases as soon as possible.

Pay Fees that Are Owed

Begin by understanding why the HOA is suing you and what your rights are. With the help of your attorney, you can review the contracts you signed, as well as the provisions and rules outlined by the HOA for homeowners. If you owe outstanding fees or assessments that were previously agreed to in your contract, it is best to pay them immediately and try to settle the issue with the HOA. Even if you have an issue with the HOA regarding the outstanding bill, it may be better to pay now (warding off any further repercussions) and then launch a dispute later.

Stay in Touch with Your Neighbors

Document the entire process, attend HOA meetings, and speak with your neighbors too–especially if you think the HOA is acting unfairly—and may be doing so to others as well. Talking with neighbors may also allow you to understand whether the HOA is discriminating against you specifically too. If the issue can be settled easily by paying your bill or taking down the fence or oversized mailbox the HOA is railing against, you may easily avoid a court battle; otherwise, consult with your attorney on how to proceed further.

HOA Board Member? Take Responsibilities Seriously to Avoid Legal Action

Be wary also if you decide to join the HOA board. While being involved in your community is a positive, serving on the board as a fiduciary is an extremely serious responsibility. Meetings must be held and attended, pertinent matters must be handled expediently and with confidentiality—and should you become remiss in your duties or make a wrong step, you could find the homeowners and the HOA taking legal action against you.

Contact Us for Help

If you are concerned about being sued by your HOA or your duties within the HOA, contact Attorney Shane Coons, experienced in handling a wide range of business matters, to include fiduciary duty disputes. We would be glad to review your case and help you explore your options. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.

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HOA Threats: What to Do When They Sue You

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