10  Myths About  HOAs continued

6.         MYTH:      The HOA fosters vibrant, healthy communities with the general wel-fare of the homeowners as an important goal.

 

REALITY:       HOAs are created to maintain property values, and to exercise police powers to regulate the use and operation of the common areas and amenities.  There is no equivalent Bill of Rights to protect homeowner fundamental rights as with public government. HOAs do not have to be fair, reasonable or competent.

 

7.         MYTH:      Not actually having read, actually signed, or acknowledged the provisions within the CC&Rs invalidates its legality.

 

REALITY:     Just the mere posting of the CC&Rs at the county clerks office is suffi-cient to create a binding agreement when you accept your deed that includes the general surrender of your rights and freedoms.

 

8.         MYTH:      As in the case of a dispute with your credit card company, in a dispute with your HOA you can send a certified letter to your HOA and no action can be taken until the dispute is resolved.

 

REALITY:     You must always make your payments regardless of any dispute. Buying in an HOA is equivalent to pledging your home as collateral for the timely and continuous payment of assessments. Your home can be foreclosed and sold at auction by the HOA.

 

9.         MYTH:      The home you buy in an HOA is your private property to do and act in any manner as you please that is not contrary to municipal ordinances.

 

REALITY:     The CC&Rs represent a surrender of your property rights to the HOA, granting it broad, discretionary powers not envisioned at the time of purchase nor clearly stated within the CC&Rs.

 

10.         MYTH:      As with any other contract, you are protected by the version of the CC&Rs in effect at the time of purchase.

 

REALITY:     The courts have upheld subsequent amendments to be binding on all homeowners regardless of when they bought their homes, and these amendments can have far reaching financial consequences beyond the reasonable expectations of the purchaser.   In other words, those CC&RS can be a meaningless piece of paper.