Can HOA Fine You?

What is a Homeowners’ Association (HOA)?

Homeowners associations are organizations that manage a planned HOA community. They are usually mandatory, and you cannot get out of an HOA if you live in a managed community. You are also legally obligated to follow the rules, or the HOA has the right to take action against you. 

For more insights into the pros and cons of living in an HOA community, check out our HOA pros and cons article.

The HOA rules are outlined in governing documents you’ll receive upon moving into the community. Many people receive a copy of the HOA rules before moving into their new home to determine if they are willing to comply with them. The governing documents often state they will impose fines if rules are broken and how much the HOA fine will be. 

Their main roles are to:

• Enforce community guidelines
• Maintain shared amenities
• Keep property values stable

CC&Rs

Covenants, Conditions, and Restrictions (CC&Rs) are the community’s governing documents that outline the rules and regulations of that community, including HOA fees. They also outline how the HOA board can enforce rules, manage disputes, and maintain order, such as imposing fines. 

The rules typically concern landscaping, architectural guidelines, property use, parking rules, and speed limits. If the HOA wants to fine you, the rule and the HOA fine must be outlined in the CC&Rs.

HOA Board

Enforcing rules and regulations is the job of the HOA board — an elected group of representatives from the community, usually between three and seven people. 

Its responsibilities also include managing the budget, addressing disputes, checking if you follow the rules — and imposing fines if you don’t. They are also responsible for drafting the governing documents that outline the rules. 

Some HOAs will give you written permission to break the rules in extenuating circumstances, but this depends on the rule and your personal situation. They often give homeowners a specific period to correct the problem and a fine if the violation persists. 

Purpose of HOA Fines

HOAs impose fines to maintain community standards and property values. This usually includes keeping homes and shared areas clean, functional, comfortable, and appealing, so in most cases, the rules make sense. In some cases, though, they can feel a little constrictive. 

Common Reasons for Fines

If you’ve received a fine, you are certainly not alone. It’s easy to miss something in the governing documents. Here are the most common reasons HOAs levy fines:

• Landscaping issues: They may impose fines for poor lawn care, forbidden plants, and other rules on outdoor spaces. 
• Parking violations: Unauthorized parking, blocking driveways, and exceeding guest parking limits may be an HOA violation. 
• Noise restrictions: They can often levy fines against homeowners for loud music, DIY projects, or other disturbances during certain hours. 
• Holiday decorations: Leaving decorations for too long or using types that aren’t allowed is a typical violation.
• Unapproved modifications: Making changes to property exteriors without prior board approval, such as unapproved paint colors.
• Unpaid HOA fees: Missing or delayed payments can cause future violations. 

Typical Fine Amounts

Most HOA fines are low, and if it’s your first violation, you may not even pay anything. HOA fines start at around $25 for minor infractions, such as leaving your trash cans outside. For major violations, the fines can go up to $200, or they can be smaller amounts that snowball if they’re charged per day.

Repeat violations typically cause higher fines each time the homeowner fails to comply. However, these fines can be higher or lower depending on the overall economic situation in the community. Homeowners associations often start with reasonable fines for small infractions.

The HOA Fining Process

There’s no reason to worry about monetary penalties from HOA boards as soon as you forget to mow your lawn. There is usually a process that needs to happen in homeowners associations first.

Violation Notice

When you break an HOA rule, you typically receive a written notice that outlines the infraction according to the CC&Rs, determines the monetary penalty, and gives you a deadline to correct the violation. In some cases, you can receive it by text, email, or phone call. Some HOAs also let you dispute the notice. 

Opportunity to Cure

Usually, the HOA gives you time to correct the violation before it imposes the fee. The board will provide you with a deadline in the notice, usually two weeks or ten days. Homeowners may also be able to ask for an extension.

Fine Schedule and Due Dates

If you do not resolve the issue by the due date, the HOA will impose a fine. The amount is determined in the CC&Rs, and it depends on the level of infraction and its frequency. For example, many HOAs will keep fining you every day until the problem is resolved.

The due date to settle the fine is typically between 15 and 30 days. In many cases, if you repeat the same violation in the next year, you will receive an automatic fine for the second offense..

Appealing a Fine

Most homeowners associations will hold a hearing (just speak to you) to hear your side. However, the HOA must provide evidence that the violation happened. According to Texas state laws, if you believe the fine is unfair or unjustified, you can appeal to the HOA board, request mediation, or, in some cases, take legal action.

Consequences of Unpaid Fines

If a homeowner violates, fails to correct, and doesn’t pay the fine, they can accrue late fees, suffer a lien on their property, or end up dealing with legal disputes. In most cases, the simplest solution is to resolve the issue before the fine. 

Late Fees and Penalties

Unpaid fines can result in late fees and penalties, which accumulate over time. If the debt increases to a significant level, the HOA may impose additional charges or restrict your access to amenities such as swimming pools or fitness centers. Some HOAs may levy fines for not paying the original fine. The financial charges have to comply with local, state, and federal laws. 

Liens on Property

Homeowners who commit repeated violations and fail to pay the fines can face serious consequences. There is a risk that the HOA will place a lien on the property, impacting your ability to refinance or sell. Liens can also damage your credit and affect the property’s title. 

Legal Action

In some cases, the HOA may pursue legal action against you to collect the owed amount. This usually only happens if you refuse to respond to the notice or pay the debt. This can lead you into an unpleasant situation and may result in legal fees.

Dealing with HOA Rules and Fines

HOAs are created to establish order, but they’re not always right or fair. If your HOA is giving you trouble or denying you due process, you can ask for legal assistance on how to remove your property from an HOA. 

Understand Your Legal Rights

Before you purchase a property or start living in it, read its association’s CC&Rs carefully. This will help you understand your rights and responsibilities and protect you from future monetary loss. It can also help you manage disputes regarding violations.

Seek Assistance From a Lawyer

If you keep receiving fines that are excessive or unfair, seek help from an experienced real estate attorney. They will be familiar with relevant laws and able to help homeowners deal with the association, especially if it threatens legal action against you.

Selling a Home with HOA Fines

Selling a home with unpaid HOA fines can be difficult, as buyers may be worried about their future financial obligations, unresolved disputes, or poorly maintained property. The homeowners association may require new homeowners to fix previous violations to ensure the property abides by the HOA regulations.

Disclosing Fines to Buyers

The new homeowners will automatically belong to the association, as membership is tied to the property. This means any seller who has unpaid HOA fines or current violations must disclose them to potential buyers. This is not only the seller’s ethical but also legal obligation.

Impact on Sale

Unpaid HOA fines can delay closing or lower the sale price. A buyer who sees unresolved fines may hesitate to purchase the home or require a significant price reduction to cover the amount. They can also draw out the closing process, force you to stay in the home longer, and give you more fines to pay. 

Working with a Cash Home Buyer

If the homeowner’s property is tied to fines or liens for violations, many traditional buyers will simply abandon the deal. Cash home buyers are different, as we purchase homes as a part of a real estate business. 

We buy them as-is, with fines, liens, maintenance issues, and other problems, which simplifies the process for you. You won’t have to worry about homeowners backing out of the deal at the last minute.If you’re facing challenges with HOA fines or you find the community too restricting, contact A-list Properties for a free quote, a fast closing process, and a simple, transparent real estate transaction. Call or text (972) 526-7042 or leave your info on our form, and we will get back to you with a quote.