No remedy in the event of HOA violations

Why can’t homeowners withhold assessments until their dispute is resolved?

Looking at the larger picture that withholding assessments is attempting to solve, there is no “remedy in event of default by HOA” provision in any CC&Rs that I’ve seen. Some might have such a contractual CYA provision, but just for the HOA. It’s here where the unconscionable adhesion contract once again works against homeowners.

In my opinion, shouting for a “fix”, like “no proxy voting”, is not the way to go. Only when you place the fix into its proper place in attaining justice, will you succeed. You must argue unconscionable adhesion contract. You can argue due process concerns only if you argue that there is an imbalance of power as a result of the adhesion CC&Rs.

To offset the legalized extortion of HOA boards, there are no remedies in the CC&Rs that specify the right of the homeowner to escrow payments, or some other similar method, as is the norm with any creditor/debtor issue. Simply shouting “escrow the money” does not present a justification to the politicians, the legislators, to take up the cause.

Advocates must link this requirement to fair play and a balance of powers between the HOA and the homeowner.

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Published in: on May 21, 2006 at 5:14 pm  Leave a Comment  

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