Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago,

User Stats

5
Posts
3
Votes
Dylan Long
  • Investor
  • Forest Grove, OR
3
Votes |
5
Posts

Can a builder setup an HOA post-no-HOA-contract?

Dylan Long
  • Investor
  • Forest Grove, OR
Posted

To be transparent, I find myself in this situation personally. We bought a home in March. As part of the entry discussion between our realtor and the builders we asked if there was an HOA, to which they said via email, no.

Fast forward to negotiations and closing, and the papers we signed between us and the builder for this home again stated there was no HOA.

We are one of nine houses in this new "cluster" built into an older neighborhood.  Six have been sold, three, including mine, are occupied  currently.

Fast-forward again to now, and a neighbor knocks on my door as he's received a letter from a new HOA management company welcoming us to the HOA, and telling us how to pay upcoming fees. All three of us, when we closed, were told no HOA, and signed contracts disclosing there was no HOA. Upon checking the mail I had the same letter.

The houses they're still trying to sell advertise a monthly HOA of about $70 I believe. Supposedly they're to cover a private drive to 6 of the houses (mine is not on this drive). There are no shared spaces, and we no landscaping services included.

None of the neighbors living here want this HOA. It's easy to know that, because there are only three of us, and we've all spoken.

So my question is, what is the legality of the builder setting up an HOA after selling three properties, with signed closing contracts all stating there was no HOA? If they insist on having an HOA, can we grandfather out of it as the group who setup the HOA "builder" also signed contracts with us in which no HOA was a provision?

This is in Portland, Oregon.

Cheers and thanks all for any advice. 

Loading replies...