HOA Litigation Doesn’t Have To Stress You Out About Selling Your Home. However, You Need To Play It Right
There’s nothing that throws a wrench into your plans to sell your home like lingering HOA litigation. Believe it or not, lawsuits involving homeowners associations have prevented thousands of homeowners from selling their homes.
The Community Associations Institute estimates there are 345,000 to 347,000 community associations in the United States as of 2017. Thus, nearly 26.3 million households and roughly 69 million residents live under homeowners associations.
Most HOA litigation stems from unpaid member dues or spats between board members. Litigation can also stem from construction defects from the original developer or a contractor who worked on the project. It’s the litigation over construction that makes lenders and sellers nervous.
Most lawsuits don’t cause a major problem for home sales. However, buyers and lenders stay clear if an HOA board is unable to function peacefully and effectively. Questions about the structural integrity of the building or the homes also scare away potential buyers.