State Specific Question About: NORTH CAROLINA (NC)

We bought a house in 2000 through a VA repo, and have been renting it out to tenants ever since. We were told at the time that there were no, and would not be any, HOA fees. There were no papers in our closing package discussing a HOA.

We received a certified letter last week stating we had not paid our HOA in the past 4 years.

What do the covenants of the subdivision say? Do they make a provision for an HOA with required dues? This will vary from state to state, but I think in most states the other owners couldn't create an HOA with required dues without a provision in the covenants. Here, the covenants can be changed with agreement of all property owners at the time of the change. This keeps a group of neighbors from forming an HOA with required dues without consent of all owners. They could form an HOA, but the dues would be voluntary without a provision in the covenants for an HOA with dues.

" We were told at the time ... "

Who told you? Why did you take his word?

Your obligation of due diligence meant that you should have looked to see if there were any obligations recorded against the title.

Asking agents? Why not used car salesmen?

Thats the purpose of a title search. To determine all encumbrances on the title. Thats YOUR due diligence responsibility.

I would send the HOA a letter demanding a copy of the bylaws, including minutes of the meeting when they were voted in, and when the first fee was levied. Since you've owned the home since 2000 and they are only claiming fees for 4 years, something is definitely fishy.

I would further send a letter to each member of the board of the HOA demanding a copy of the notice that was supposedly delivered to you before each of the last members meetings, as well as a copy of the agreement that was filed with the county.

The deed reflects ownership.

The HOA obligation is an encumbrance on the ownership, like a mortgage. It won't be shown on the deed. If the encumbrance has been recorded, then it will show in a title search as an encumbrance, just like a mortgage.

If you bought in 2000, the HOA most likely just sent letters to each address in the subdivision in 2013 and did not bother to look up the owner address. So your tenant most likely got the letter and did not pass that along to you.

To what address did they send the certified letter?

Id tread carefully before making many waves here, as many HOA s do not appreciate rentals and there may even be language barring rentals. And even though you may be "grandfathered" in that regard, you could have a real fight.

Is there another LL in the area you could talk to? Even being friends with a long-term neighbor would benefit you.

Before paying, I'd ask to speak directly to a member of the HOA and get your hands on their bylaws before paying a dime.

If you find this is really due, I'd request the HOA waive any late fees.

Good luck-

A warrantee deed is one in which the seller warrantees that the property is free and clear, or at least is free and clear subject to a specified list of contingencies.

Thus, a contingency like an HOA commitment will have to be listed on a warrantee deed, but is not listed on a simple deed, and therefore a title search needs to be performed. The title search will uncover any recorded encumbrances against the property.

Pay it immediately or ask for a payment plan. Your house is in an HOA, and the community has been paying for the roads, landscaping, lighting, irrigation, and sidewalks. Now that you know you're in an HOA, raise your rent.