What Laws Govern the HOA?

HOA law refer to the laws governing the Home Owners' Association (HOA). HOA is an organization set up in real estate development for the maintenance and management of the common assets or areas. Though the association is formed by the property developer, its management has to be handed over to the home owners after a specific number of houses are sold. Buyers of home are subjected to become a member of such associations as a legal compulsion. These HOAs are generally governed by state statutes and hence differ considerably from state to state.

What does a HOA do?

HOA is a non-profit organization that governs and regulates a condominium, townhome or a community. It sets rules, conditions and regulations for the people occupying the real estate premises. It also instructs what cannot be done in the premises and also governs the maintenance of shared properties. It has authority to collect fees for the maintenance of the shared properties.

Laws Governing HOA

HOA is treated as a Common Interest Development (CID) in many of the state statutes. It is governed by lots of laws from the Corporation Code, the Civil Code, the Subdivided Lands Act of the Business and Professions Code, Civil Procedure code, Vehicle Code and many more. Due to these complications, certain states have consolidated all legislation regarding the HOA under an act. For example, California has consolidated them into the Davis-Stirling Common Interest Development Act.

Legal Obligations

An HOA is under legal obligation to comply with these laws. Few of them are discussed here.

  • Subdivided Lands Act - This act imposes certain rules and regulations for the sales of newly constructed homes from within the HOA. The HOA has to initially prepare a public report which provides sufficient information about the property to the prospective buyers.
  • Criminal Code - Annually HOA should conduct board meetings and the important decisions have to be summarized and sent to each of the property owner in the association.
  • Civil Code - The executive members of the association have to be selected by involving all the members of the association.

Getting Legal Help

If you find yourself involved in the problems with HOA, then it is advisable to approach a homeowners' association attorney. He/she may help you in obtaining the relief by explaining the rights and legal obligations as per the laws of the concerned state.

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