HOA / Real Estate Contract Issues

Hi, I need help with a house I closed recently. This is Brand New Community with the Builder Still building houses. Currently only 5 houses have closed and me being the 2nd house that closed we ran into an Issue with the HOA fees. In our Sales Contract that we signed more than 1 year ago our HOA Fee stated that it is $50 per month. 2 months later after we closed we received a Statement from HOA managed currently by a management company stating that I owe them money and that our HOA fee is Now $120 a month.

Some homeowners will be closing soon, and Even on their Sales Contract it Still stated $600 / year = $50 / month.

I tried to retain an Attorney but due to that I am the only 1 "closed" that is willing to go the Legal Route, I can Only send the HOA a Letter which will cost me $1000.

I have already tried to deal with this matter informally with the HOA through email and All they told me is that the HOA Fee was Already Established with the Builder before building and they won't Adjust.

Please Help!!

You've already answered your own question in seeking an attorney. However, there are attorneys who will write threat letters for much less than $1,000. Shop around.

You may also contact your local and state Board of Realtors and the state Real Estate Commission. Errors like this very much fall within their level of interest, especially if agents are pushing incorrect information as part of the sale.

Good Luck.

Correction. I think the most damages the OP could collect are $70 total, period, for exactly the difference between the advertised assessment and the first month's assessment.

Also I imagine the sales contract has language indicating the $50 per month is the "current" assessment. Meaning the HOA has the right to raise the assessment the next month.

No, there was Nothing stating only $50 per month under current assessment. There is something that says "subject to change" on the Sales Contract.

In the Covenance Disclosure there it says can charge up to $500 per year with Notifications, in which we have never been Notified.

New homeowners that closed 3 weeks ago were still closing with the $600 per year HOA fees.

Now that I brought up this Issue, the Builder is emailing homeonwers that have Not closed yet - "Take it or Leave it" and they will get Full Refund of the deposit back.

In the Covenants it says that Assessment Shall not increase by more than $100 per year.

-- If you want to learn more, please post what the covenants themselves say on the subject of the assessment and increasing the assessment.

-- I think I can see how you think the advertising was false. But I am not convinced that the buyers have actually read all of the contract (the covenants) to which they agreed. The typical new person posting here has not. The typical new person here often does not know what a "covenant" is.

Under "Convenant for Assessments":

Annual General Assessment - Each Owner of a Lot by acceptance of a deed or conveyance thereof, whether of not it shall be so expressed in such deed or other conveyance, shall be deemed to covenant and agree to pay to the Association an Annual General Assessment of $500 per fiscal year.

Initiation Assessment - The Board of Directors not increase by more than $100 during any calendar year unless the Owners approve a greater increase by majority vote.

LisL

I understand what you are seeing/quoting but while under developer control, the developer usually has the power to vote in changes they want. If you read your docs closer you will see they probably (most likely) having that voting control. All bets are off when the developer is in control.

Welcome to the world of HOA's,

I am fixing to face the same situation soon myself. Building a new house in a HOA. My contact also states $600 per year and like a $150 fee at closing due. The HOA is not controlled by my builder but another one building next door. So far there are no plans for any amenities but for detention ponds for common property. I've check out other properties by this developer and they don't have amenities either just ponds for rain water collection.

However, I am also not going into this with my eyes closed. Had them give me a copy of the rules immediately after the deposit. Have read through it and know it's full of issues. Ones that will have to be addressed at a later time once the developer is out of the picture. Right now, I just have to go with what the developer decides.

I am a little surprise at the $150 a month but my documents say the $150 till it reaches $600 paid per year. Not knowing the time frame your HOA considers a "year". It is hard to tell when you will reach that $600 annual fee.

Hope they don't do that to me after closing. However, I know it could. No reason to get that upset about it as it does nothing but subject everyone it paying higher dues to cover the expense of dealing with your lawyer/legal expenses.

Our concern is that since there is No regulation - HOA can decide without notifying us that the next quarter will now be $180 a month and so on if we don't set this Straight.

I don't mind paying for 1 letter if this Issue will be fixed, but I'm afraid that it will not just be solved with 1 letter, following mediation which the attorney will be billing me another 4-6 hours until we reach an agreement.

Thank you - I will research more on this.

Sitting up in cold Minnesota, I sure do notice a lot of posts from Florida that are filled with frustration.

Ha, funny.

A favorite Uncle of mine used to say that the heat in the South messes people up.

Then again decades ago, as I sat on a dock off one of the Florida Keys in late December, enjoying a balmy breeze; dangling my feet in the ocean; and a week's retreat before immersing myself in a several month job assignment in snowy, upstate New York; I knew (and know) Florida has much to recommend it.

Else JohnC46 said it well.

Michael,

Many of those frustrated, are in Florida but previously were in Minnesota - they moved to Florida for obvious reasons.