Homeowners Association Law




Homeowners Association Law relates to the the creation and enforcement of organizations and their rules that manage and community associations and help to maintain their appearance and value. Most homeowners associations and condominiums are made up of a common residential asset managed through a chosen Board of Directors. Membership is mandatory upon the purchase of real estate situated in the association. State laws, local bylaws, and organizational rules all relate to the management of the community.

Formation

Most homeowners associations and condos are corporations formed by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. After reaching a certain threshold of sales, the developer relinquishes its control of the association to its members. Usually, the association is formed by filing certain documents in the public records of the state and county in which the association is situated. State oversight of homeowner associations is usually fairly minimal, but this trend is changing and associations are becoming increasingly regulated by the government.

What is a Homeowners Association?

A homeowners association is incorporated by the developer prior to the initial sale of homes, and the Covenants, Conditions, and Restrictions (CC&Rs), also called the Declaration, is recorded in the public records and sets forth the detailed rules of membership/property ownership in the community. There is no need for a mutual agreement between buyer and seller regarding the CC&Rs, as they are legally defined to "run with the land.” In other words, if one wants to buy the property they are assumed to be aware of the rules and buying it subject to the restrictions contained in the CC&Rs. If an owner sells the encumbered land/ home, he ceases to be a member of the association and the new owner becomes a member. All members must pay fees and conform to the restrictions of the association regardless of whether they have actual knowledge of these rules and fees or not.

Rules Enforcement

Legal action of the homeowners association may be enforced through the threat and levying of fines, and private legal action under civil law. The HOA provides services, regulates activities, levees assessments, and may, as delegated by the states legislature, impose fines. Unlike a municipal government, they are not subject to the constitutional constraints that public government must abide by.

For more information about homeowners association law, please see the resources below. Additionally, you may be able to find an attorney in your area that focuses their practice on the area of HOA law in your jurisdiction by clicking on the “Law Firms” tab on the menu bar at the top of this page.

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Articles on HG.org Related to Homeowners Association Law

Homeowners Association Law - US

  • Community Association Manager Licensing

    This resource center will provide state-specific information on enacted manager licensing/registration/certification/standards laws and pending legislation. It will also provide guidance and resources for those members and states that are discussing this issue.

  • Fair Housing Laws - (HUD)

    The Office of Fair Housing and Equal Opportunity administers federal laws and establishes national policies that make sure all Americans have equal access to the housing of their choice.

  • Homeowners' Association - Wikipedia

    A homeowners' association (HOA) is an organization created by a real estate developer for the purpose of controlling the appearance and managing any common-area assets during the marketing, managing, and selling of homes and sites in a residential subdivision. It grants the developer privileged voting rights in governing the association, while allowing the developer to exit financial and legal responsibility of the organization, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots. It allows a civil municipality to increase its tax base, but without requiring it to provide equal services to all of its citizens. Membership in the homeowners association by a residential buyer is typically forced as a condition of purchase; a buyer isn't given an option to reject it.

Organizations Related to Homeowners Association Law

  • American Homeowners Association

    AHA provides over 35 services and benefits that help take the high cost and hassles out of buying, owning and maintaining your home. As an AHA Member, you can save well over $1,000 each year and avoid many common (and costly) pitfalls. You can count on AHA for greater convenience and peace of mind -- we'll be there for you when you need us!

  • American Homeowners Resource Center

    We are a public interest interactive website for homeowners. This section is for those who live in Homeowners Associations. The primary driving force behind the American Homeowners Resource Center (AHRC) is a national and international grassroots network of homeowners working together to protect homes.

  • Community Association Network

    The Community Associations Network, LLC was formed to create a single, public, internet resource for community associations and the people and firms that work with them. The phrase "re-inventing the wheel" has been used often to describe association operations, where each board of directors wrestles with a problem or issue as if it has never been dealt with before. Chances are it has, but there was no way to find out about it. CAN is going to try and change that. CAN is not affiliated with one individual, company or group, instead we try and bring you the widest possible scope of information, products and services to help you with this housing type. It is our hope that by doing this you'll find a good, positive answer to questions and issues that may confront you.

  • Community Associations Institute

    CAI provides education, tools and resources to people who govern and manage homeowners associations, condominiums and other planned communities. Our mission is to help you make your community a better—even preferred—place to call home

Publications Related to Homeowners Association Law

  • Association Times

    A web resource for community associations. Provides news, articles and FAQ's.

  • CondoManagement Magazine

    CondoManagement Magazine is a bi-monthly condominium/homeowner association management magazine covering California, Florida and New England.




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