THE HONEST BROKER: RESOLVING ASSOCIATION DISPUTES
Homeowners’ association disputes are quite common. Given the diversity within a community, there’s no guarantee that the members will get along with each other all the time. If disputes occurring between neighbors are not resolved quickly, it can escalate and cause major problems for everyone involved including the HOA. Even though the board isn’t directly involved in these HOA disputes, it’s still their responsibility to maintain peace and order in the community.
1. Homeowner Complaint or Request for Dispute Resolution between neighbors–
The HOA conflict resolution process will begin with a homeowner’s complaint or request for HOA intervention. A written request usually triggers the process. But, if the complaint was made verbally, the HOA board or management should document it. If not already in place, your board should consider requiring homeowners to submit HOA complaints in writing. This formalizes the procedure and ensures the existence of a paper trail. If you can, it would be much better to standardize the complaint letter by providing homeowners with a template or form. The following measures should be taken a.) gather as much information as possible from both parties, b.) presentation by an appointed person to the board at a board meeting of the facts of the dispute as they are known. The board will vote on whether to intervene or not with a potential fine or restriction of privileges according to association documents or required arbitration.
2. Dealing With Disputes Between the HOA and Residents–
It’s also possible to have disputes between homeowners and the board (or board members. Some of the most common causes of HOA disputes of this nature include but are not limited to:
- Disagreement about violations the homeowner is accused of committing
- Fines imposed on homeowners
- Differing interpretations of rules and covenants
- Imposing a rule not recorded within the governing documents
- Disagreement about the HOA’s authority to enforce rules
- Inconsistent or selective enforcement (or the perception of it)
- Disagreement about fund management or budgetary issues
- Imposing special assessments or an increase in dues
In any case, the HOA should still start their standard dispute resolution process. However, to maintain fairness and objectivity, the board should not be in charge. You can appoint a third party to resolve these homeowner association disputes. This can be your HOA management company or your HOA attorney.
Apart from being qualified to handle HOA disputes, the third party must be neutral. They must be able to present a resolution that takes into consideration both sides. The third part will put the resolution into writing at the conclusion of the meeting.
3. Alternative Forms of HOA Dispute Resolution–
If the HOA disputes cannot be resolved internally, you may need to consider alternative dispute resolution methods such as mediation and arbitration. Both options allow homeowners to resolve their conflicts without litigation. These will have added costs, but they are considered less costly than lawsuits. Extreme cases of HOA disputes may also lead to lawsuits. This will require even more time and money. Homeowners can sue the HOA over disputes, but the litigation process is a long, tiring, and usually expensive one. There are some exceptions to this, though. State laws and an association’s governing documents may require parties to go through mediation or arbitration first, saving litigation as the last resort.
Stay safe and Be well….
Diane
Diane Lott, Broker
Owner: Paradise Found Realty
Paradise Found Realty, Inc. of Palm City
website: www.ParadiseFoundRealtyFl.com
Email: diane@paradisefoundrealtyfl.com
Phone: 954-294-5060
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