Legal Question in Real Estate Law in California

HOA reserves disclosure

What options do I have if my HOA painted a rosey picture of their finances when I bought my home, and charge a big special assesment 3 months later. Their reasoning for the assessment contradicts everything in their financial discosure I recieved.


Asked on 9/13/07, 2:02 pm

1 Answer from Attorneys

Robert L. Bennett Law offices of Robert L. Bennett

Re: HOA reserves disclosure

About once a week, an HOA question is posed and my answer is always the same.

The Courts are extremely reluctant to overturn an HOA decision, especially when the facts do not violate one of the provisions of the CCR's.

You have a few options, but, in my opinion, only one makes sense.

Remember that the Courts (at least in California) seem to treat HOA's somewhat like Native American tribes on the reservations, where they make and enforce their own laws.

You could argue fraud in the inducement, which is a very old defense to barring a completed contract, and voids the contract from the beginning. These are hard to prove, and require specific intent to defraud you by the member, or members, of the HOA who painted the rosy picture.

Your legal fees, and court costs, could be expensive, and I really cannot give you a thorough analysis without more details, since your factual situation is a bit sketchy.

Another option, perhaps lesser expensive, is to attend meetings, run for the Board, and make changes from the "inside".

Please feel free to e-mail, or call my office, if you need more.

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Answered on 9/13/07, 3:22 pm


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