Transfering HOA from developer to owners

Started by BobbyN • 3 replies • 1681 views

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BobbyN (Texas)
Posts: 4

Posted:

Can the HOA be disbanded when the developer tries to transfer power to homeowners? Can we opt out of the HOA if we want when the transfer takes place? Or can the developer simply disband it themselves?I live in Houston, and think the developer still owns the properties. One section of the community is already complete and I dont even know who serves in the board of directors. For how long can an HOA go? Any advice?

BrianB (California)
Posts: 2,820

Posted:

it depends, but in general, HOA restrictions are written into deeds. So, if you disband the HOA, each owner is still legally responsible for and liable for maintaining common areas, paying expenses, etc. You can disband an HOA, but the city/county/state may either disallow it, or place the area in receivership, in which case you are now part of an HOA in which you have NO voice, NO vote, and it is more expensive than it was before (ie, you pay someone else to manage you, and they can make good money off your community).

Again, you typically can only opt out of an HOA before you sign a home purchase contract, and that is by not signing/buying in the first place.

BobbyN (Texas)
Posts: 4

Posted:

Thanks for the info Brian, I'm happy where I'm living and just wanted to know if this can happen. I knew it was a deed restricted community before I bought my property and I agreed with it. I just was just wondering if the HOA can be disbanded easily, but I guess not, so I just hope it stays that way so our community can be a nice place to live.

BrianB (California)
Posts: 2,820

Posted:

i would say it's easier to regain virginity than it is to disband an HOA.

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