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Question Can a newly formed California HOA Corporation, La

 

Customer Question

Question: Can a newly formed California HOA Corporation, La Mirage Homeowners Association, legally charge the home owners in the association an HOA fee?

Fact 1: My land title and escrow papers show that I do not own a fractional interest in the common areas because there was no HOA in existence at the time. All the other owner titles, that I have investigated, read the same.
Fact 2: XXXXX XXXXX, who recently lost the Florida senate race, owns all the common areas. The HOA is trying for many months to transfer common area title from XXXXX XXXXXe to the HOA.
Fact 3: The HOA is collecting dues each month and is now making repairs in the common area.

 

Optional Information:
State/Country relating to question: California

Already Tried:
Most of the non G8 Corporation land owners are paying under protest for possible future legal action. G8 Corp owns 51% of the 300 housing units and controls the HOA. We are in a wait and see mode.

Submitted: 866 days and 1 hours ago.
Category: Real Estate Law
Value: $59
Status: CLOSED

Accepted Answer

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Expert:  FiveStarLaw replied866 days and 1 hours ago.

Hello,

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by JustAnswer.com and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

The Board of Directors may enact an HOA fee however it must do so for a legitimate purpose and act in the best interest of the homeowners. It appears that the Board of Directors is not acting in the best interest of the Homeowners Association nor is the fee for a legitimate HOA purpose.

You can consider an action for breach of fiduciary duty. The Board of Directors has a fiduciary duty to the owners. One of those duties is to expend of the HOA money for legitimate HOA purposes. Expending HOA money for non-HOA purposes is a breach of this duty

I suggest you retain local counsel to file suit

Expert TypeLawyer
Category: Real Estate Law
Pos. Feedback: 97.9 %
Accepts: 6884
Answered: 1/1/2011

Experience: 25 years of experience helping people like you.

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