Expert: Karyn Foley - 2/14/2010

Question
QUESTION: 4/09 I moved into a community in Carolina Shores, NC that has HOA rules, covenants & a management company.  I was given what I was told were the HOA rules from the salesperson.  I liked what I saw about what was/was NOT permitted, assumed these rules were enforced and made my decision to purchse based upon this document.  After I purchased, I discovered the document was not complete & did not include any variances made by the BOD -many of which were in direct conflict with the HOA rules).

Some examples:  HOA rules I was given prior to purchase said  1) max 3 pets.  BOD approved a variance for a homeowner to have five dogs. 2) much publicity was given about the wonderful walking/nature trails in the community (in sales brochure).  They were never built.  3) HOA rules are enforced for some homeowners (re: luminiscent, garish lawn ornaments) and not others who are granted variances to have them and MUCH MUCH more........ This is discrimination  

When I made commplaints to our Management Co, about violations (quoting specific sections of the HOA rules) they do nothing.  I'm told to:  1) call the police (who have nothing to do with HOA rules enforcement) 2) for ME to talk to my neighbor who is in violation 3) state that unless they see the violation ocurring they can't do anything about it.  In response to a leter I sent, the management company stated that they do not enforce the HOA rules, that they have no authority (only the builder's BOD does).  I wrote a letter to the builder BOD and met with the division president.  They have the controlling vote here with their BOD and make all decisions.  (Acording to HOA rules there were supposed to be two homeowners on this BOD & this hasn't happened) The division president was rude and condescending & didn't answer anything........ could not tell me who enforced the HOA rules either - he said ALL his decisions are based on risk to the builder - not on HOA rules (that the hoomeowners here expected to live by).  

Who can help?  This is not the community I anticipated living in.  Had I known how this oommunity is run, I would NEVER have purchased a home here. Purchasing in a "community" is more than just the house itself --  it's the lifestyle & standard of living presented in the HOA rules. This "management" is very unfair to individuals who purchased here expecting a certain standard of living and aren't getting what we paid for.  Why bother to have HOA rules if they are not enforced by anyone and if the BOD can make variances in direct conflict with the HOA rules for any reason at anytime and not necessarily in the best interests of the hoomeowner's or their investment.  I feel I was sold a bill of goods, information was misrepresented & am very concerned about my investment in this community.  I've lost about $25K in value in one yer's time.  All my retirement money is invested in this home.  

I understand the State of NC controls Homeowner's Associations/Planned Master Communities in some way.  Could I write to someone in the State?  This whole situation just doesn't seem right at all.  I'm getting no where with our Management Company or the builder.  I cannot afford an expensive attorney.

ANSWER: Dear Gayle:  I am concerned about the facts in your letter.  If it were me, I would be as upset as you are and try to take action accordingly.  The first thing I would do is try to get redress through another channel.  Obviously, the board, management company, and the community is doing nothing to assist you in either explaining or enforcing the rules and regulations.  I am of the strong opinion that the complete set of rules, including the variances, should have been given to you prior to purchase.  At this point, you should call the State of NC and see to whom you should write.  You might also gain some help from your state department of real estate.  Some real estate attorneys will charge you on a contingency basis.  You may have a viable suit here, so call some attorneys who may take a look at your grievances and handle your suit on a contingency.  Sometimes the real estate section of a major city newspaper can be of help, too.  It would be better for you if you can find other homeowners who feel the way you do, as there is strength in numbers.  Your association should also have an attorney; ask to speak to him/her.  Good luck to you, and let me know what happens.  KARYN FOLEY

---------- FOLLOW-UP ----------

QUESTION: How do I get in touch with the State of NC?  Do you  have an email?  Phone?  Address?  Namme of who to contact?  

Do you have contact info for the State Dept of RE?  Is this the same as  NC Real Estate Commission in Raleigh, NC?  I have an email address and phone # for them.  

How would I find an attorney to take the case on contingency?  Any website you can suggest?  What would I be looking for in the RE section of the newspaper?  There are other homeowners, but it's very hard to organize a group b/c people "don't want to get involved" and think, as I do, that we can't get anywhere without an attorney and that's big bucks.

Answer
I do not live in your state.  I have no telephone numbers or emails or addresses or names to give to you.  There are many departments locally and statewide that deal with real estate.  There are local boards of real estate, state departments of real estate, fair housing departments, newspapers, other real estate agents, attorneys you can start with my checking out the telephone book, but you have to be the one to start.  You mention a  NC Real Estate Commission; you should call them as a beginning.  You need to do your own research but one has to has to start somewhere.  If there is a dog issue, for example, your county may have a dog regulation.  In the county where I live, there is a three day maximum and the local homeowner associations cannot exceed that number - it's not up to them to grant a variance and exceed the county's limit.  Call your local animal control center.  If no one else wants to get involved, perhaps you are the only one who is upset.  Has anyone even tried to contact an attorney?  This is an effort that has to be done by the complainants.  Perhaps you might try contact this same experts site, but direct your question to a property right or land use attorney as a new approach.  I am not a lawyer.