Legal Question in Real Estate Law in Texas
Homeowners Association Lawsuit & Home Sale
As a property owner in a sudivision, I am automatically a member of a Homeowners Association. This association is involved in a lawsuit with one of its other property owners. If I place my home ''For Sale'', or as I renew my homeowner's insurance policy, must I identify myself as a ''party to a lawsuit'' because I am a member of the homeowners association?? Or is it the association itself, and not its members, that is ''party to the lawsuit''. The association has annual dues and charges back its members for additional costs, such as legal fees resulting during a lawsuit.
2 Answers from Attorneys
Re: Homeowners Association Lawsuit & Home Sale
You are not a party to a lawsuit, the HOA is. More than likely, if legal expenses exceed the HOA's reserves there will be a special assessment for all of the owners (or members of the HOA) to cover these expenses.
Re: Homeowners Association Lawsuit & Home Sale
Howdy:
That's right. And, you do not have to tell anyone ... buyers or insurance ... about it.
rkr