HOA & Condominium

In North Carolina, condominiums are governed by the North Carolina Condominium Act. Similarly, most non-condominium subdivisions are governed by the North Carolina Planned Community Act. As a homeowner in either type of community, your legal rights are also regulated by the governing documents of the condominium or HOA. In these communities the primary governing rules are often called the "Declaration", covenants, conditions, and/or restrictions. The governing documents are unique and differ for each different community.

FAQ

What is a Homeowners' Association?

A Homeowners' Association, or HOA, is an association comprised of all lot owners or unit owners in a given development. The developments include Planned Communities and Condominiums. The HOA is responsible for maintaining common areas or elements, managing community finances, collecting assessments, and enforcing the association's governing documents, rules, and regulations.

Is membership mandatory?

When you purchase property governed by an HOA you automatically become a member of the association. Membership is mandatory. By purchasing the property, you have entered into an agreement to obey all restrictions and rules of the community.

What are Covenants, Conditions, and Restrictions? What are association Bylaws?

Covenants, Condition, and Restrictions (CC&Rs) are the restrictions that regulate the use of the land and the common areas. CC&Rs are often referred to as the "Declaration". CC&Rs vary from community to community and may restrict such things as whether an owner can lease their property or even if they can keep pets. Bylaws are guidelines for the operation of the HOA. Bylaws specify the responsibilities of the Board of Directors, the membership's voting rights, and meeting requirements.

Can the HOA place a lien on a homeowner's property for failure to pay their homeowners assessment?

According to North Carolina state law, a HOA can place a lien on the property for failure to pay assessments, and may foreclose upon the lien if the owner refuses to pay past due assessments after proper notice. A lien may also be placed on the property for failure to pay fines imposed upon the owner for violation of the CC&Rs, Bylaws, or rules of the community.

TOP FIVE REASONS A HOA NEEDS LEGAL Counsel

1. Assistance with the collection of delinquent assessments, and if necessary the filing of a claim of lien.

2. Guidance in enforcement procedures regarding the restrictions and rules of the planned community and the imposition of fines for violations.

3. Preparation and guidance to implement amendments to the governing documents of the planned community.

4. Interpretation of use restrictions.

5. Advising Directors and Officers of best practices

What Homeowners Should Expect from Their HOAs :

When joining an HOA's membership, homeowners should expect a certain level of treatment from their association. These expectations are based on rights put forth in the law, or on basic standards of respect.

Homeowners deserve a response to an inquiry, unless the inquiry is absurd or threatening, or the demand(s) are intended to harass.

Homeowners should expect that HOA financial and other records will be kept in a routine manner for reasonably easy access.

Homeowners should expect disclosure procedures which ensure easy access to most documents within a reasonable time and without unreasonable restrictions.

Homeowners should get a timely notice and a fair opportunity to be heard if the HOA intends to take disciplinary action against them.

Homeowners deserve consistent treatment in enforcement of rules and regulations.

Homeowners deserve a reasonable opportunity to vote in important elections or to appoint another to vote on their behalf.

Homeowners deserve to be informed of their voting eligibility if they do not qualify to vote per the governing documents before a vote is held.

Source: Beth Grimm, ECHO's East Bay Resource Panel (https://www.echo-ca.org/article/17-legal-rights-homeowners-living-hoas )