Legal Question in Real Estate Law in Indiana

Re: Power of Homeowner's Association to enforce covenant

A homeowner's association has complete power to enforce the covenants for the subdivision, arising from its organizational document which is usually part of the declarations of the subdivision created by the developer and both approved by and encouraged by the local planning authorities. The Assocation (at least most of them created recently) is usually incorporated and has all the powers of any other corporation to sue. Any amendments made by the Association whether before or after the homeowners took over the association from the developer must be done in the manner prescribed in the by-laws and in accordance with the necessary votes. Any amendment must also be recorded and provided to the homeowners. If a homeowner fails to attend meetings or vote and tries to ignore the assocation he will be just as bound by the covenants and amendments as if he had been active in the association. However, where there is a small click that runs the place and does not encourage the homeowners to participate, their actions may well be treated as invalid. Assuming your amendments were added in accordance with the bylaws or other governing article, they are as binding as if originally written in and become effective for all current and future homeowners. The homeowners association I represent files liens against those who are late in payment of annual dues, which are recorded so that if the property is sold, the delinquent dues get paid. It also has the option of suing in the local courts to collect delinquent fees and could file a foreclosure to collect, just as a mortgage company if the payments are delinquent.

So, your homeowner's association is all powerful over the lives of the residents in the subdivision. It is similar to a small village with a town board.