Q: My parents live in a subdivision that didn’t have a homeowners association (HOA) when they first moved there in 1998.
They did sign a PUD rider though. A year ago, they received a letter saying that they are behind in HOA dues.
They have never committed to being in an HOA or attended any meetings. Since they signed the PUD, are they obligated to pay the homeowner’s dues? Thanks!
A: Let me start by saying that your parents really need to talk to a real estate attorney about this issue.
You say they signed a PUD rider. Was that in connection with a loan they obtained? A PUD rider is a document that is attached to a mortgage and refers to a “planned unit development.” It would appear that when they signed the PUD rider, the lender may have known from the title report that the property was subject to some sort of association or other community living arrangement.
If in fact they live in a subdivision or community that is impacted by association rules and dues, then yes, they must contribute their monthly assessment. In return, they should benefit from having the association manage the common areas of the development.
But surely, the letter stating that they are “behind” in their assessments isn’t the first one that they received. There must have been other communications with the association.
They should know that choosing not to participate doesn’t mean you get to opt out of belonging to the HOA. For legal options, your parents should speak to a litigator with experience in real estate law.
April 15, 2007.
I purchased a home in June of 2007 in TN. At the closing there was no mention of any HOA past or present and I did not sign a PUD. In SEP07 I recieved a notice from a HOA saying that the NorthPark HOA would be starting back up because the city required it in order to maintain common areas for wich the city had to pay to have mowed. Since then I have found out that the HOA did at one time exist prior to me buying my home but it went defunct/inactive because no one payed their dues. Also on my deed their is a reference “This conveyance is subject to restrictive covenants of record in Official Record Book Volume 368, Page 1392. On the closing papers it was not disclosed by the previous owner that their was any previous HOA, perhaps because they themselves did not own it when they were active. Recently the HOA put a lien on my home. I feel that I have been dooped into being liable for the fees out of my own ignorance (first time homebuyer). Is their anything I can do legally? And if not, can a HOA backdate the fees to when I purchased the home even though I recieved no service because they didnt exist/were active then? Thankyou for any response. william.fleck@us.army.mil
I have the same issue. When the deed was issued back kn 2013, there was no HOA. In fact, the HOA was dissolved on 7/31/2004, and never reinstated within the statutory deadline. Therefore, there was no HOA in existence in 2013, when I purchased the property. I did sign a planned unit development rider for my loan, which mentioned that the property is part of a planned unit development. There are no recorded Declaration or covenants for this planned unit development, so no reference on our statutory warranty deed. I recently learned that a person in our neighborhood formed a new Homeowners Association on 10/11/16, and called it the same name as the previously dissolved homeowners association. No one can locate any declaration or covenants of of this new homeowners association, and none have been recorded on our property. They are no demanding that we pay dues to this Association for maintenance of an easement for a road that was recorded on our statutory warranty deed. We are refusing because we never approved the formation of this new HOA and still have no declaration to verify whether we are even part of this PUD, or if it is mandatory membership somehow. Can they charge us dues even thought the HOA was not formed at the time we signed the PUD Rider on our mortgage, and they still have not recorded any declaration for this new HOA? eileenmckillop@outlook.com
If a homeowner signs a PUD Rider and there is an existing HOA with dues to be paid each year and then they don’t pay the dues can the HOA use this signed PUD Rider to get the mortgage company to take care of the unpaid dues to the HOA, kind of like what they do with property taxes?
L:
Yes, they may be able to.
Ilyce
How should an HOA approach finding this out? I only found out about the PUD Rider by looking at mortgage docs of some our homeowners. We have problem homeowners that won’t pay their dues and I thought this could be a good way to get them paid up.
Can I get an answer to my 2nd question please?
My issue is that we did sign a HUD but have never received any HOA information or yearly dues letter until the other day. How can they just now ask for yearly dues 11 years later. I’m not trying to avoid pay it because it’s only $125 a year however I find it messed up after 11 years.
Phillip –
So, no dues until yesterday – for 11 years??!!! Wow. That is messed up. I wonder what else hasn’t been done for 11 years. Probably a good idea to find out.