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OT - Forming a HOA
Posted on 7/6/19 at 7:21 am
Posted on 7/6/19 at 7:21 am
For my folks well-versed in real estate: We have a developing situation in my five-house neighborhood that I and other homeowners would like to stop and need to know if it can be done.
We have a home for sale two down from ours that is closing on Wednesday at 3:00pm. I have come to find out that the new buyer is planning to rent the house. For a number of reasons, we don’t want that happening (home values, instability of neighbors, maintenance and upkeep issues, etc). We have considered forming a HOA in the past, but this use issue may force it. I have read up on the hows and have a personal friend who is a real estate attorney and could draw this up quickly to get signatures in short order. My next door neighbor rents his home, which is fine. He gets good people in and he lived there years ago, so he’s kept it for sentimental reasons. We could write the rules up to allow for no more than 20% rental properties which covers his home, but doesn’t allow any others. I have read that some states require 60% of homeowners to sign and if that’s true in GA, the selling homeowner would not have to.
All this said, am I missing anything? Should we form an LLC and have this drawn up and signed? Appoint three folks as the board and notify the selling agent of intent so that the buyer can be made aware? What am I missing? What’s at risk if they try to sue? He hasn’t bought it yet, so we still have time I would think.
Advice?
We have a home for sale two down from ours that is closing on Wednesday at 3:00pm. I have come to find out that the new buyer is planning to rent the house. For a number of reasons, we don’t want that happening (home values, instability of neighbors, maintenance and upkeep issues, etc). We have considered forming a HOA in the past, but this use issue may force it. I have read up on the hows and have a personal friend who is a real estate attorney and could draw this up quickly to get signatures in short order. My next door neighbor rents his home, which is fine. He gets good people in and he lived there years ago, so he’s kept it for sentimental reasons. We could write the rules up to allow for no more than 20% rental properties which covers his home, but doesn’t allow any others. I have read that some states require 60% of homeowners to sign and if that’s true in GA, the selling homeowner would not have to.
All this said, am I missing anything? Should we form an LLC and have this drawn up and signed? Appoint three folks as the board and notify the selling agent of intent so that the buyer can be made aware? What am I missing? What’s at risk if they try to sue? He hasn’t bought it yet, so we still have time I would think.
Advice?
This post was edited on 7/6/19 at 7:24 am
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Posted on 7/6/19 at 8:15 am to S1C EM
Just don't worry about it, we live in a free market economy.
You will give yourself an ulser.
Here on the Southside of Nashville, I love all the brand new houses sporting "No New Developments" signs in the freshly sodded yards.
It is what it is.
You will give yourself an ulser.
Here on the Southside of Nashville, I love all the brand new houses sporting "No New Developments" signs in the freshly sodded yards.
It is what it is.
Posted on 7/6/19 at 8:43 am to lewis and herschel
Not really that simple. Our other homeowners have rights as well and we will exercise them to the extent that we can. I have reason to believe that this person is attempting to rent a single-family home to two families, one on the main level, one in the basement.
Nearly half the homes becoming rentals is not good for the neighborhood. If I wanted to live in an apartment complex, I’d rent in one.
Nearly half the homes becoming rentals is not good for the neighborhood. If I wanted to live in an apartment complex, I’d rent in one.
Posted on 7/6/19 at 8:48 am to S1C EM
We were told it had to be 100% of the homeowners sign on. We were told this last year, in Georgia, in our neighborhood where the HOA is "voluntary".
Posted on 7/6/19 at 9:15 am to deeprig9
I think it has to be unanimous to start one.
They last 17 years. So the 60% number is just to maintain them moving forward.
They last 17 years. So the 60% number is just to maintain them moving forward.
Posted on 7/6/19 at 9:27 am to S1C EM
Is this a joke? Gotta be a joke. Look you yokel...there is ZERO chance of getting a legally enforceable HOA that says (in effect) my buddy who is ‘good people’ next door can rent but new people can’t...in a week.
Gtfo with this nonsense.
Gtfo with this nonsense.
Posted on 7/6/19 at 9:41 am to S1C EM
I totally get why you wouldn't want this, but don't you own/rent out a few houses? 
Posted on 7/6/19 at 9:44 am to athens-ga
quote:
Is this a joke? Gotta be a joke. Look you yokel...there is ZERO chance of getting a legally enforceable HOA that says (in effect) my buddy who is ‘good people’ next door can rent but new people can’t...in a week.
Gtfo with this nonsense.
Thanks for the uninformed opinion. It's actually a common rule in many HOAs/covenants. You can specify a certain percentage of homes CAN be rentals. As he already has his rented, he's grandfathered.
Of course that's assuming we could do anything. Deeprig is correct, though. I just spoke with my real estate attorney friend and he confirmed. Oh well. We'll hope for the best.
Posted on 7/6/19 at 9:46 am to retooc
quote:
I totally get why you wouldn't want this, but don't you own/rent out a few houses?
No, I had one and sold it last year. But I was anal about checking out my tenants. The only thing I can hope is that this guy is doing background checks, etc. It's concerning because many don't. We have three young kids and the last thing we need is a revolving door of riff raff and sex offenders two houses down. Not to mention, how it will affect our property value.
Posted on 7/6/19 at 9:56 am to S1C EM
He's black isn't he?
Posted on 7/6/19 at 10:02 am to S1C EM
He said that the HOA malfunctioned.
There was also a bad smell but renter said that the HOA farted.
There was also a bad smell but renter said that the HOA farted.
Posted on 7/6/19 at 10:44 am to K9
quote:
He's black isn't he?
How would I know? No one is there yet. I like how people automatically assume that not wanting renters = racist.
If that’s your thought process, then you’re part of the societal issues we have today.
Posted on 7/6/19 at 11:46 am to S1C EM
HOA can be useful. But if ppl want to rent they'll find a way around it
My folks owned a condo they wanted to rent. HOA told them they could not. 20% were already rented. They filled out the necessary paperwork to wait their turn on the rental. Meanwhile, put the renter on the mortgage paperwork and he lived there starting immediately. Never put him on deed or anywhere that would jeopardize their ownership.
Once they were approved (years later) removed him and rented to him.
Edit: the board was furious but could not stop it.
My folks owned a condo they wanted to rent. HOA told them they could not. 20% were already rented. They filled out the necessary paperwork to wait their turn on the rental. Meanwhile, put the renter on the mortgage paperwork and he lived there starting immediately. Never put him on deed or anywhere that would jeopardize their ownership.
Once they were approved (years later) removed him and rented to him.
Edit: the board was furious but could not stop it.
This post was edited on 7/6/19 at 11:47 am
Posted on 7/6/19 at 12:12 pm to S1C EM
You going to spend alot of money, worry yourself silly and maybe win....
There are more important things in life.
I avoided this by moving where I have no neighbors to worry about.
There are more important things in life.
I avoided this by moving where I have no neighbors to worry about.
Posted on 7/6/19 at 12:39 pm to lewis and herschel
Well aren't you special.
Posted on 7/6/19 at 1:30 pm to S1C EM
I think you are too late for this action. They would have a good case stating that when they signed a contract, their was no rule that they couldn’t rent it out. By making an HOA and implementing this rule during their buying process, you will look like you don’t want them in your hood.
Posted on 7/6/19 at 1:43 pm to K9
quote:
He's black isn't he?
I
Posted on 7/6/19 at 1:51 pm to S1C EM
quote:
I have come to find out that the new buyer is planning to rent the house. For a number of reasons, we don’t want that happening (home values, instability of neighbors, maintenance and upkeep issues, etc).
quote:
My next door neighbor rents his home, which is fine
You cant just pick and choose who you want to be able to rent their house you racist dick.
Also, maybe the reason your neighbors are selling/renting their house is they dont like living nextdoor to you. After reading this I would think that's a definite possibility.
Posted on 7/6/19 at 1:56 pm to retooc
quote:
Meanwhile, put the renter on the mortgage paperwork and he lived there starting immediately.
Can you specifically define this action? It sounds like they put him on the security deed/note without putting him on title. Which doesn't make sense (how can he be on a security deed without ever being on a warranty or quitclaim deed?). He can't deed a security interest for a property that he doesn't own.
It sounds like they did a few quitclaims (putting him on and taking him off).
Posted on 7/6/19 at 3:02 pm to Spunky
he's thread on the OT has gone even better than this one 
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