HOA Breach of Contract by the Homeowner or the Association
A Homeowner Association (HOA) functions much like a contract, albeit a multifaceted one. When you purchase a property in a community governed by an HOA, you agree to adhere to its rules and regulations, typically outlined in the HOA's governing documents. These documents include the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws, and Rules and Regulations.
By becoming a homeowner within the HOA, you're essentially entering into a contractual agreement with the association and its members. This agreement entails both rights and responsibilities. The HOA provides certain services and amenities, enforces community standards, and manages common areas, while homeowners agree to pay dues, follow community guidelines, and participate in the decision-making process through voting and possibly serving on the HOA board.
Violating the terms of the HOA can lead to penalties, fines, or legal action, much like breaching a contract. However, it's important to note that HOA rules and regulations can be more flexible and subject to change compared to traditional contracts, as they may be amended through the association's governing processes.
A breach of the Homeowner Association (HOA) contract occurs when a homeowner fails to comply with the rules and regulations outlined in the HOA's governing documents. This breach can take various forms, such as:
Non-payment of Dues: Homeowners are typically required to pay regular dues to the HOA to cover maintenance costs, amenities, and other communal expenses. Failure to pay these dues is a breach of the contract.
Violation of Rules: HOAs have rules and regulations regarding property maintenance, appearance, noise levels, pet policies, and other aspects of community living. Violating these rules constitutes a breach of the contract.
Alterations to Property: Making unauthorized alterations to one's property, such as adding structures or landscaping without approval, can also be considered a breach.
Use of Property: Some HOAs have restrictions on how properties can be used, such as leasing restrictions or restrictions on running a business from home. Violating these restrictions constitutes a breach.
When a breach occurs, the HOA typically follows a specific process outlined in its governing documents for addressing violations. This process usually involves sending notices to the homeowner, providing an opportunity to cure the violation, and imposing fines or other penalties if the violation continues.
In severe cases or after repeated violations, the HOA may pursue legal action against the homeowner, which could result in a lawsuit seeking compliance, monetary damages, or even foreclosure in extreme cases. However, legal action is typically considered a last resort after other attempts to resolve the issue have failed.
HOA Breach of Contract by the Association
If a homeowner believes that the Homeowners Association (HOA) has breached the contract, they may have recourse depending on the specific circumstances and the provisions outlined in the HOA's governing documents. Here are some common scenarios where a homeowner might claim that the HOA has breached the contract:
Failure to Provide Services: The HOA may be obligated to provide certain services or maintain common areas as outlined in the governing documents. If the HOA fails to fulfill these obligations, it could be considered a breach of contract.
Discriminatory Actions: If the HOA discriminates against a homeowner in violation of fair housing laws or the provisions of the governing documents, it could be considered a breach of contract.
Selective Enforcement: If the HOA applies rules and regulations inconsistently or unfairly targets certain homeowners while ignoring violations by others, it could be seen as a breach of contract.
Unauthorized Assessments or Fees: If the HOA imposes assessments, fees, or fines that are not authorized by the governing documents or state law, it could be considered a breach of contract.
If a homeowner believes that the HOA has breached the contract, they should typically follow the dispute resolution procedures outlined in the governing documents. This often involves notifying the HOA in writing of the alleged breach and attempting to resolve the issue through negotiation or mediation.
If the dispute cannot be resolved informally, the homeowner may consider taking legal action. This could involve filing a lawsuit against the HOA for breach of contract and seeking remedies such as damages or injunctive relief.
It's important for homeowners to review their HOA's governing documents and consult with legal counsel if they believe that the HOA has breached the contract. Additionally, some states have specific laws governing HOAs and dispute resolution procedures that homeowners should be aware of.
