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Have you ever heard of a homeowner paying a large lump sum…

Customer Question
Have you ever heard...

Have you ever heard of a homeowner paying a large lump sum in exchange for a reduction in HOA dues?

Lawyer's Assistant: What steps have been taken so far? Has any paperwork been prepared or filed?

None

Lawyer's Assistant: Where is the property located?

Georgia

Submitted: 4 months ago.Category: Real Estate Law
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Answered in 16 hours by:
3/16/2018
Real Estate Lawyer: Michelle-mod, Moderator replied 4 months ago
Michelle-mod
Michelle-mod, Moderator
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Customer reply replied 4 months ago
Still looking for the information. Mainly want to know if any legality would prevent an HOA from entering into such an agreement with a member.
Real Estate Lawyer: RealEstateAnswer, Lawyer replied 4 months ago
RealEstateAnswer
Category: Real Estate Law
Satisfied Customers: 32,399
Experience: 10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help with your question and concern

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Real Estate Lawyer: RealEstateAnswer, Lawyer replied 4 months ago

Is there anything in the HOA by-laws/documents which would allow this?

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Customer reply replied 4 months ago
I couldn’t find anything in them allowing or prohibiting it so I presume the docs could be amended to allow this. My main question is whether there is any state or federal law that would prohibit this arrangement.
Real Estate Lawyer: RealEstateAnswer, Lawyer replied 4 months ago

It would have to be something that is set up and allowed by the HOA and something which is offered to ALL owners. It is not something that could be offered to a select few owners but I have never heard of a discount given for a lump sum payment unless there was an issue involving the homeowner being sued and the HOA trying to settle with them. I think there would be a major issue with this, as some owners would be paying more and some less, based solely on their ability to pay in a lump sum, so I do not believe this is something which would be legal and would be challenged.

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Real Estate Lawyer: RealEstateAnswer, Lawyer replied 4 months ago

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!

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Customer reply replied 4 months ago
I agree about it being offered to all homeowners. Do you still think it would be illegal with the HOA properly adopting amendments to the documents allowing any member to make a lump sum payment and receive a discount? Or was your illegality conclusion based on the discount offered to only a select few members?
Real Estate Lawyer: RealEstateAnswer, Lawyer replied 4 months ago

It would be only to select homeowners. You can not just offer it to some people and not all. Moreover, there is a budget to run the community, so if discounts are given, it would offset it and could lead to financial problems. I do not think this is something that would be allowed unless it is offered across the board and can be shown to cause no financial harm to the association.

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Real Estate Lawyer: RealEstateAnswer, Lawyer replied 4 months ago

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!

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