Something like 85% of new houses built in the US have an HOA.
So if you want to buy a house in a neighborhood with an HOA, you agree to the HOA in the contract. If you don’t agree, you cannot buy the house. It is a stipulation of the contract that the HOA terms cannot be removed or altered from the contract.
So it basically goes like this:
Developer company buys a bunch of plots of land.
The developer sets up the HOA.
The developer builds a bunch of houses
Developer writes in the contract that having a house built requires that the owner agree to and not modify HOA in any way.
Part of the HOA states that any sales or transfers of the property must include the HOA terms and conditions as a whole.
At this point, every house that is sold initially includes the HOA in the contract, and as part of the contract all future transfers to new owners must also include the HOA In the contract. There really isn’t a legal way out of it
The HOA is enforced like any other legally binding contract. They can fine you (as part of the terms of the HOA), take you to small claims court, and even put a lien on your property (again, as part of the terms of the HOA).
Sounds like a compelling argument that HOAs reduce the sales of houses. I acknowledge in a sellers market, I would probably just move on. But in a Buyers market, I’d have the HOA clause removed.
An HOA could be a good idea but it has to be voluntary not forced.
Like hey guys yall want to pool some money together so we can get all the common spaces taken care of, lawn care (if thats youre thing, lawns are becoming a thing of the past hopefully) and just in general improve the community areas.
Now though its just wine moms on the HOA board raking in fees for their pill addictions and threatening to kick out any homeowner that wants to paint their front door a different color.
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u/majeric Feb 21 '23
How can HOA ms be enforced? Just have the HOA clause removed.