At worst, if you dont pay your dues, you will likely just get kicked out of the HOA. A homeowners association (HOA) is a membership-based organization that enforces a set of rules and regulations within a community, such as a subdivision or a condominium building. way. Thats why you need to choose your attorney carefully. Finally, in rare cases, it may be possible to remove your lot or unit from the HOA, but dont expect this path to be easy, inexpensive, or beneficial for your neighborly relationships. Additionally, youll need a thorough understanding of those CC&Rs we mentioned. HOA LAWS AND REGULATIONS. To make big changes, youll need to understand what youre dealing with. Aside from the locality and mortgage companies, removing an HOA will also require approval by all or a supermajority of community residents. If you would like to learn more about filing a complaint against an HOA, head over to our complaints page. If you do manage to opt out of specific HOA services or rules, its also worthwhile to try to negotiate a lower HOA fee. If you belong to a voluntary HOA, you can leave whenever you like. South Carolina requires business entities to follow certain steps to dissolve properly. When it comes to opting out of an HOA, understand that HOAs come in one of two varieties: mandatory and voluntary. Suite 400 Mandatory HOAs are exactly as they sound: membership is non-optional. What Documents Will I Need for Taxes if I Bought a House Last Year? Your HOA probably owns at least some of the development's property, such as the common areas (walkways, garage, community center, and even portions of the buildings where owners live). Best we buy houses for cash companies, Are you a top realtor? and landscaping. Meetings are also your opportunity to raise concerns that can help avoid escalating a complaint to the point of legal action. To the lenders holding mortgages on those properties, well, the proposition may not look enticing. Otherwise, you may have to petition the board for a meeting to vote on dissolving, or have to take the matter to court. Many HOAs include terms for dissolution in their documentation, including specific steps and requirements. Its really difficult to get out of an HOA if your home was already part of one when you bought it. so dont assume that youre safe just because your HOA was founded after you bought your house. Property and Conveyances - Title 27 of the South Carolina Codes of Laws, includes numerous provisions governing the formation, management, powers, and operations of residential properties, lands, hereditaments, and real estate within the state of South Carolina. (803) 734-4200, 293 Greystone Blvd. The law prohibits homeowners' associations or other housing providers from adopting restrictions that would prevent homeowners from displaying one portable, removable United States flag respectfully. While some HOAs have a process for de-annexation spelled out in their Covenants, Conditions, and Restrictions (CC&Rs), many dont. The statute prohibits HOAs from including a restriction contrary to this within their governing documents. seq. Victims of unfair collection practices can file a complaint against a debt collector with the states Department of Consumer Affairs, the FTC, or the CFPB. In many cases, governing verbiage will state that if an HOA is dissolved, the common areas are then joint and severally owned by the homeowners. Martindale-Hubbell Client Review Ratings display reviews submitted by individuals who have either hired or consulted the lawyers or law firms. The better route is to figure out what the problem is and resolve that so the association can operate properly., Through her 17 years of community association legal work, Burgess has developed a threshold question when a homeowner raises the issue of dissolving an HOA. Copyright 2023 MH Sub I, LLC dba Internet Brands. Therefore, we promote stricteditorial integrity in each of our posts. Click on the name of a statute below to view the law in its entirety: Click here to view of listing of SC laws referencing homeowners associations. Following are the ways to pay for the dissolution, You can select a payment pick-up option. The ambiguity surrounding HOA law from state to state can create a situation where overly zealous neighbors may try to pressure you into joining a new HOA. If they dont have the facts correct, its assumed they are acting on bad faith when really they are acting on bad information.. Federal Trade Commission (FTC) - This is the primary federal agency responsible for enforcing the Federal Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair or deceptive practices when attempting to collect a debt. Related opinion letters by the South Carolina Attorney General: AG Opinion Letter, October 15, 2004. Generally, you stay a member for as long as you own the property. I tell people all the time, if someone is very vocal in a board meeting and we have a vacancy, they should appoint that person. Because membership is voluntary and can fluctuate, that means these HOAs often have fewer financial resources than mandatory HOAs. A majority vote is usually not sufficient on its own to dissolve an HOA. South Carolina State Housing Finance & Development Authority. But, buyer beware, its rare for an HOA to be dissolved, and the process can be very time-consuming and expensive. Consumer Complaints | Consumer Affairs - South Carolina Your HOA has a fiduciary duty to work in the best interests of the community as a whole. Secure a copy from the secretary of the HOA board. With that in mind, courts throughout the country have consistently upheld the right of HOAs to impose architectural restrictions as long as the restriction serves a legitimate purpose, is within the association's power under state law and/or the community's declaration, and does not violate any other law or public policy. contract. regarding the allocation of insurance deductibles and expenses associated with hurricane damage to horizontal property regimes/associations. Title to the HOA-owned portions of the development must usually be transferred to another legal entity when the HOA is dissolved, or else divided among individual homeowners. That's not easy to do, but for the small community with almost no common property, a two-thirds vote of Woodington homeowners might actually be possible. This is often a stumbling block to dissolution, because some owners who don't have serious grievances with the HOA might not want to go through the trouble and expense. All rights reserved. I would like to dissolve the HOA. That said, depending on the service being provided, you may be able to negotiate an exemption with your HOA. CC&Rs are enforceable, even if your community doesnt have a functioning HOA. Martindale-Hubbell validates that a reviewer is a person with a valid email address. The owners jointly agree to accept certain obligations and restrictions on how properties in the community can be used. Taking legal action may be the only route left open to you, but dont overlook other possible ways to resolve your issues South Carolina Attorney General - The office of the attorney general, plays a vital role in protecting the states citizens. For example, your HOA may be defunct and hasnt filed its annual reports with the state licensing office for a very long time (i.e., decades). The deeds to each homeowner's property might include reference to the HOA. The tricky thing about dissolving HOAs is that their formation has to be approved by the local municipality, which is generally a positive move for the city. South Carolina HOA Laws and Resources - Homeowners Protection Bureau, LLC For example, you may need your local government to agree to take control of some of the HOAs property, like private roads People are generally good and try to act in the best interest of the people, she notes. STATE OF SOUTH CAROLINA SECRETARY OF STATE ARTICLES OF DISSOLUTION Pursuant to Section 33-14-103 of the 1976 S.C. Code of Laws, as amended, the undersigned corporation adopts the following articles of dissolution for the purpose of dissolving the corporation. There might come a time when the homeowner members of the community, who in most instances also serve as the volunteer board members of the HOA, feel that it no longer makes sense to maintain this legal entity.