Do I Have to Join my Neighborhood HOA?

While there are more than 370,000 Homeowners Associations in the USA, joining an HOA is not for everyone. While some appreciate the benefits of HOA membership, others find the rules overly restrictive or have no interest in paying the associated fees. If you have found the house of your dreams in an HOA neighborhood, you may be wondering what your options are to avoid joining the HOA. Here, we look at a few scenarios:

1. Voluntary HOAs

As the name suggests, purchasing a home or condo in a voluntary HOA community does not require you to join the HOA. Voluntary HOAs typically use their membership fees to maintain common-area facilities such as pools, clubs, tennis courts, and other amenities. If you opt out of the HOA in this instance, you simply would not have access to these amenities—or you would have to pay for every use. Unlike other HOAs, voluntary HOAs do not have the authority to dictate rules about how you keep your property. Similarly, they cannot enforce rules on nonmembers.

Voluntary HOAs are typically low-commitment and primarily focus on access to community recreational areas.

2. Mandatory HOAs

If you purchase a home in a neighborhood with a mandatory HOA, you must join the HOA. At closing, you will need to sign documents agreeing to abide by HOA rules and pay any fees or fines incurred if those rules are broken. While mandatory HOAs typically also maintain common facilities, they also have a lot of power to enforce rules about the maintenance of your personal property. Rules can range from fines for grass that has grown too high to restrictions on how many lawn ornaments you can have in your front garden bed.

If you are considering putting an offer in on a home but do not want to join the mandatory HOA, you may need to find a different property. Work with a real estate agent to find homes not included in an HOA. Getting a home out of an HOA is very difficult because it is legally tied to the property's deed. While it is possible to de-annex a property from an HOA, this process is legally fraught. You would be required to prove the HOA failed its obligations, or get your neighbors to vote to dissolve the HOA altogether.

3. Newly Forming HOA

If an HOA is forming in your area, you are not obligated to join. To form a mandatory HOA, the vast majority of your neighbors would have to agree to join the HOA and confirm the terms. You can absolutely opt out of this process if you purchased your home before the HOA was formed. Even if all of your neighbors join the newly formed HOA, you are not obligated to do so unless your deed makes specific mention of the HOA.

If you are getting pressure to join a forming mandatory HOA, you have legal rights. Review your property deed and closing documents to determine if there is a mention of an HOA or an obligation to join any future association. Do not sign any new documents, such as a membership agreement, and do not pay any fees or fines if you are not part of the association. A real estate attorney can help you formalize your refusal to join the HOA and ensure your legal rights as a homeowner are upheld.

Veitengruber Law is an experienced real estate attorney in New Jersey. We work with NJ homeowners to protect their rights and ensure they are not being taken advantage of. If you have questions about HOAs, reach out to us today.