I attended a Legal & Ethics Updates class today as part of my pilgrimage to renew my Broker license. Several items covered are frequently asked to me. I know lots of folks have issues with their HOAs. Some believe them to serve a great purpose. Either way, sometimes they just over-stretch their power. This is not a comprehensive list. Here I will cover a few items pertaining to the Home Owner Association changes.
HOME OWNER ASSOCIATION UPDATES (GENERAL)
1. Fee Payments - An HOA governing over 14 lots must adopt reasonable guidelines for an alternative payment schedule with partial payments owed without penalties with a minimum of 3 months and not more than 18 months.
The point: To prevent foreclosure, an HOA must provide an owner the option of a stream of payments, not just a lump sum, without paying a penalty, not to exceed 18 months to collect.
2. Members of Military - If the HOA intends to foreclose on a member i the active military service, the HOA must also provide a special notice, in conspicuous and in bold face or underlined type, notifying the owner he or she may exercise his or rights under the Soldiers and Sailors Relief Act.
The point: There are special services since our military are sometimes out of the country and cannot tend to certain matters.
3. Opportunity to Cure for Lien-holders - An HOA may NOT foreclose an assessment lien by an out-of-court foreclosure unless the HOA has provided written notice of the total amount of the delinquency to any recorded, subordinate deed of trust holder and given 60 days to cure.
The point: In years past HOA was not required to provide written notice creating silent foreclosures. An owner could be living in a home and not even own it if the HOA transferred the deed quietly to the HOA. They have 1st lien so it supersedes the bank note.
4. Removal from Dedicatory Instrument - A provision granting the right to foreclose a lien on real property for unpaid amounts due to an HOA may be removed from a dedicatory instrument if it is approved by at least 67% of the total votes of property owners.
The point: Big Win for Owners! Owners can remove the HOA's foreclosure right with a 67%+ vote.
HOME OWNER ASSOCIATION UPDATES (PROHIBITED RESTRICTIONS)
1. American Flags are permitted - but may be "reasonably" regulated.
2. Roof Solar Panels - a solar energy device may not be prohibited unless it threatens the public health or safety, or violates a federal or state law, but may be "reasonably" regulated. (Near & dear to my heart!)
3. Religious Symbols - May not be prohibited but "reasonably" regulated.
4. Speed Feedback Sign - An HOA may install a speed feedback sign as long as the HOA receives consent of the local subdivision's governing body and the HOA pays for the sign's installation.
This is not a comprehensive list. It is a short list of frequently asked questions by owners that I personally know. For more information contact the Texas Real Estate Commission or your local Realtor.
Comments(2)