Many states have passed statutes that dictate the procedure that an HOA board may fine a homeowner for violating community rules- California, Virginia, and Florida are three. For now, let us get a better understanding of how the enforcement procedure is supposed to work. Uneven enforcement of community rules, like in this example, would leave the board members liable to suit from the other members of the community because the board is violating their fiduciary duty.įor more information on board duties owed to their members, check out the previous discussion linked above. ![]() ![]() Even if the majority of the board happens to like this shade of green and doesn't believe the violation is that big of a deal, the enforcement process needs to go into effect. Because the duty is owed to each of the members of the community, board members are not permitted to substitute their own judgment for that of the established rules.īack to our previous example, if the association promulgated a rule requiring yellow or white paint only to be applied on houses, and a fellow homeowner picked a pretty shade of green, action must be taken. However, before we rush off into the next section that answers all the questions related to fines, let us quickly reiterate the importance of consistently and uniformly enforcing the rules.Īs we discussed previously in-depth in our article regarding the duties and obligations of board directors, the fiduciary duty of boards gives the directors very little flexibility in choosing which rules to enforce. Commonly, boards will use a penalty system to ensure compliance with community standards. If, for whatever reason, board members do not automatically comply with community rules, the board needs a means of deterrence. Thus, the need for boards to use enforcement measures to enforce the rules. It is nearly impossible to craft perfect rules that will not be ambiguous in some scenarios. ![]() However, we all know from personal experience that it is never that easy.įor example, if there was a requirement in the community that houses be painted white or yellow only, a homeowner could have a different understanding of how bright the shade of yellow is considered tolerable. Now, if we lived in a Utopian community, this is where the work of the board would end: members would elect board directors that they trust and said directors would effectuate rules that would be embraced by the community and followed with gusto. The transfer fee is payable directly to the HOA's management company.From noise to parking to aesthetics, association boards draft rules requiring compliance by the members to ensure the quality of life for the residents and to protect the home values of all the member homeowners. Please contact the HOA's management company for a current quote on the transfer fee. The purpose of the transfer fee is to cover the time and one-time costs incurred by the management company to setting up a new homeowner information file and account for the HOA and closing the former owner's files and accounts in accordance with the HOA's document retention policies. Consequently, the HOA Board has authorized its management company to charge a transfer fee directly to all new home buyers within the Buffalo Mesa subdivision. The HOA Board does not reimburse its management company for fees and other costs incurred by the management company related to ownership changes of Lots within the Buffalo Mesa subdivision. All status letter requests should be submitted online through Transfer Fee ![]() The purpose of the status letter is to provide buyers and sellers of homes within the Buffalo Mesa subdivision with various HOA-specific information including (1) whether there are outstanding covenant violations and/or fines attached to the lot, (2) whether any outstanding litigation exists against the HOA and (3) the amount and nature of any fees, fines or reimbursement assessments payable to the HOA. Through its management company, the Buffalo Run Mesa Homeowners' Association, Inc (HOA) provides status letters to title companies.
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