Re: Can an HOA Restrict What I Do in My Own Property
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Lizard
If one does conduct a business in their home against the rules cited in the CC&Rs, on what grounds would they be able to collect damages from you if what you did didn't create any additional traffic flow?
The CC&Rs might provide some monetary fine the HOA may levy for violations. Even if it doesn’t have that and it cannot show actual damages, it could still sue for an injunction to prohibit you from continuing the offending activity. Then if you violate the injunction the court can impose monetary penalties or even jail you for contempt of court.
Note that the issue will be what was intended by the parties in adopting the term “trade or business.” If the case is tried to a jury, it would end up being the jury that decides it, not the judge.
Re: Can an HOA Restrict What I Do in My Own Property
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Taxing Matters
The CC&Rs might provide some monetary fine the HOA may levy for violations. Even if it doesn’t have that and it cannot show actual damages, it could still sue for an injunction to prohibit you from continuing the offending activity. Then if you violate the injunction the court can impose monetary penalties or even jail you for contempt of court.
Note that the issue will be what was intended by the parties in adopting the term “trade or business.” If the case is tried to a jury, it would end up being the jury that decides it, not the judge.
I just cringe at the idea of an HOA spending the money to go to trial over an issue where its not clear that the homeowner is operating a trade or business. That is just crazy. As a member of an HOA I wouldn't want its money being spent so foolishly. But then, I will never live in a neighborhood with an HOA.
Re: Can an HOA Restrict What I Do in My Own Property
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llworking
I just cringe at the idea of an HOA spending the money to go to trial over an issue where its not clear that the homeowner is operating a trade or business. That is just crazy. As a member of an HOA I wouldn't want its money being spent so foolishly. But then, I will never live in a neighborhood with an HOA.
I’m right with you on that. The sad thing is that some HOA boards would do it because they are very much about asserting their power in the HOA and keen on ensuring that everyone does things just the way they think it should be done., however unreasonable that might be. For HOA residents who like conformity and share their HOA boards view of how everyone should do things I’m sure HOA life is great under those kind of dictatorial boards. For everyone else, though, those kinds of HOA boards are a nightmare. I am not bashing all HOAs; I’m sure a number of them have quite reasonable boards and CC&Rs that aren’t too burdensome. I have however represented some clients against overeaching and unreasonable HOA boards and know first hand the nightmare HOAs are out there. The problem for me is that it can be difficult to know just how bad a HOA board really is until after you buy the home. And I am not willing to risk buying a home in what turns out to be a nightmare HOA. I’ll let others roll the dice on those homes. :D