HOA buyouts of problematic owners?

Started by PaulJ6 • 3 replies • 563 views

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PaulJ6
Posts: 990

Posted:

In my HOA, we have one owner who the board president and management company hate (they say so at HOA meetings). I'm not involved enough to know if they hate that owner because the owner is right or wrong, but they hate him. The management company owns multiple homes in the HOA; it's a real estate investor in addition to being a management company.

In situations in which a HOA has multiple homes owned by one investor, particularly if that investor is a principal of the management company and is on the board, wouldn't it be reasonable for that investor to just buy out a problematic owner?

That owner is one of the few who raises issues to the community as a whole; that owner is a rabble-rouser (for better or for worse). So I'd think that the investor/management company would be eager to get that owner to move.

Thanks.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Wishful thinking... HOA's don't work that way. The only way to get a member out is if they don't pay their dues. That my friend is what we call "foreclosure". Which in some states there is a "Right of Redemption" period up to a year. Which means someone foreclosed can get their property back up to a year if they pay what they owe plus some expenses.

Sorry but they and everyone can hate on this person all day long. Not going anywhere. Unless of course they make an offer the owner can't resist. Which doesn't mean the HOA buys them out. It would be another individual to do it.

Former HOA President

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Former HOA President

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By PaulJ6 on 06/15/2019 8:25 AM
In my HOA, we have one owner who the board president and management company hate (they say so at HOA meetings). I'm not involved enough to know if they hate that owner because the owner is right or wrong, but they hate him. The management company owns multiple homes in the HOA; it's a real estate investor in addition to being a management company.

Lots here, including myself, call this a conflict of interest. But it also happens a lot, for good or bad.

What does this company do with the homes? Turn them into rentals? If so, watch out for the neighborhood going downhill.

Quote:

In situations in which a HOA has multiple homes owned by one investor, particularly if that investor is a principal of the management company and is on the board, wouldn't it be reasonable for that investor to just buy out a problematic owner?

The way I look at it, the company can do whatever it wants within the law. It does not have to share a reason. Though if I were a member at this HOA, and I did not like how things were run, and I witnessed the company buying out the troublemaking member, then I would look forward to an offer coming my way soon. I might even have incentive to do what the other member did, in order to get bought out.

Quote:

That owner is one of the few who raises issues to the community as a whole; that owner is a rabble-rouser (for better or for worse). So I'd think that the investor/management company would be eager to get that owner to move.

As long as the company is not breaking the law to get rid of the member, I support it. I would rather be bought out than harassed out.

Paul, do you want to share what your role is in all this?

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