Home Owners Associations (HOAs)

Real estate developers establish homeowners associations as corporations for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. HOAs grant the developer privileged voting rights in governing the association. Usually, the developer transfers ownership of the association to the homeowners after selling a predetermined number of lots. Generally home buyers within the purview of a homeowners association must become members, and must obey the restrictions set forth by the association. Most homeowner associations are incorporated, and are subject to state statutes that govern non-profit corporations and homeowner associations. State oversight of homeowner associations is minimal, and it varies from state to state.

Advertisement