What law controls hoa's?
First, the term “HOA” has evolved into a generic title for two different types of communities:
- Planned Unit Developments. These are generally neighborhoods comprised of single-family homes and Townhomes. A distinctive feature of these neighborhoods is each property owner has a direct interest in their property- they own a piece of land.
- Condominium Associations. These are generally communities where instead of owning a piece of real estate dedicated to their unit, owners own a fractional interest in the underlying real estate of the entire community.
Non-Profit Corporation Act. The majority of Associations operate as Non-Profit corporations. As such, one law that applies is the North Carolina Non-Profit Corporation Act.
North Carolina Condominium Act. Condominium Associations are governed by this Act which is found in Chapter 47C of the North Carolina Statutes.
North Carolina Planned Community Act. Planned Communities are governed by this Act which is found in Chapter 47F of the North Carolina Statutes.
do these statutes outline everything hoa's can and cannot do?
No. In reading these statutes, there are several provisions that allow an HOA to make their own rules. In other words, some provisions are mandatory and some provisions apply where an HOA’s own governing documents (Covenants, Bylaws, etc.) are silent. One can almost view the provisions of HOA Covenants as part of “the law” for that particular community.
As with many areas of law, provisions in statutes can be left to interpretation. Provisions found in an HOA’s Covenants can also be left to interpretation. In such cases, disputes between HOA’s and owners are often decided through court proceedings. When these proceedings go through the court appellate process, the issues decided become the guidepost from which future issues are decided. This is referred to a case law.
In summary, “the law” applicable to every HOA is based upon its covenants, statutes and case law.
Disputes and legal conflicts often arise because the law is not clear.
When legal disputes arise, the first step in the legal analysis is to apply the facts to the law. This is true with HOA disputes. It is common for parties to disagree on the facts. It is also common for parties, lawyers and even judges to disagree on the law in a given situation. Given that, a careful review of the facts and the law is the first step you should undertake in deciding how to handle a dispute with your Association. Helping you navigate that initial step is the goal in my consultation process. Choose the link, below, to start the process of arranging your consultation.