At Last, A Tennessee Answer

As many of you know, Tennessee is one of a few States without any real HOA laws or Statutes which leaves us without a place to go if we become involved in a HOA crisis. Someone who regularily visits our site here had written to me about some major problems with her HOA and she took the time and effort to research and make contacts, seeking advice. Here is part of her note to fellow Tennesseans.

"I contacted a Nashville attorney through his website, where one could write a question to his firm. I asked regarding association law in Tennessee, as we know these laws are lacking. His response was that CONTRACT LAW is the way to assure compliance of residents/Board members. If the legal documents are not followed, then this is breach of contract."

So there we are.

Petunka,

At least there was an attempt fro Florida by having the Ombsman for Condos to mediate situations. There are Statutes to act as guidelines where Tennessee has none specifically for HOA's. There are some lame time share and condo laws but they too are only as good as there is enforcement, thus making it solely the homeowners financial responsibility to seek resolution.

Donna,

condos are a different story and I really do not want to go there now. Personally, I’d be quite happy to give up Chapter 720.

‘In conclusion, then what really are the benefits of living in a HOA? ‘

I can’t think of that many benefits at the moment. There are instances where potential risks may outweigh any benefits you may initially like. It depends on the age and size of the development, its amenities, structure of homes (townhouse vs. stand-alone homes) and those good old covenants the developer put in place. And, of course the board sets the ‘mood’ and can make living in HOA pleasant or rather stressful. The owners are also expected to understand what their responsibilities are; so it goes both ways.
HOA is a mini-Government and that government, like many, can be easily mismanaged.

HOA's are sales tools used by the Developers/Builders. They also use them as tax breaks. HOA's sound like a good idea on the surface. You pay a monthly/yearly fee to enjoy certain amenities or services. Plus you get to control and maintain home values by enforcing the rules the HOA creates. Sounds all good doesn't it?

The reality soon kicks in that what you got is a small corporation/government that you and your neighbors have to run together. Who knows how to do that??? A boy scout den father or a stay at home mom who sales Avon? The people who get things done and run your HOA, are simply the ones who are willing to step up to the plate. Yes, you have your dicatators, your over achievers, and your simply brainless...This is YOUR HOA! Do the best you can with it...

(By the way, you should hire a lawyer familiar with contractual or corporate/business law. It may be real estate but that isn't the laws that apply...They are Contractual and corporate..)