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Hello..
Don't know if there are any Arizona Realtor Agents on this site, we do live in this state. This question I believe would be considered a national general concept.
Our HOA has determined to not recognize we are having major erosion problems in our community. As an example, I just learned the tall hill behind my house was actually created/ amended from it's original form to develop homes. To pass inspection I guess there was a water diverson type system with concrete channels to take water away from homes below to street. Unfortuantely over time this system has failed due to lack of maintenance and or repair stated in CCR's to maintain common areas. There are now huge fissures opening up all along the street, big eye sore. We have additionally been told we have to disclose we have erosion problems to potential buyers even though the last two boards won't even allow this as a converation.
This problem come to find out has been going on for years, and nothing has been done even though engineering reports have been iniitiated with no plans made. We purchased in 2014 and were never told there were any problems from builder, HOA or agent.
I guess now too much time has passed for pursuing legal action for contruction defect. There was a lawsuit by the HOA to the original builder in 2015 and was settled for $110K for defect, money was spent for who knows what. I feel though the issue is the past HOA Boards have passed the buck due to their incompetance and have not fulfilled their fudiciary responsibilities to maintain common areas. The money to fix now is massive as the problems are all over community. Bottom line is we want out of this area. I would never want to sell anyone a bumb steer however if the HOA doesn't recognize the problems, how is this to be addressed to potential buyer. There is a little more to this however this is the main jest. I feel I should go to an attorney to see my options if any?
Disclosure should only be for your property, not the HOAs. When filling out any disclosure forms just state that the buyer needs to contact them for current status of issues beyond your own walls. The less said by you the better.
Hello..
Don't know if there are any Arizona Realtor Agents on this site, we do live in this state. This question I believe would be considered a national general concept.
Our HOA has determined to not recognize we are having major erosion problems in our community. As an example, I just learned the tall hill behind my house was actually created/ amended from it's original form to develop homes. To pass inspection I guess there was a water diverson type system with concrete channels to take water away from homes below to street. Unfortuantely over time this system has failed due to lack of maintenance and or repair stated in CCR's to maintain common areas. There are now huge fissures opening up all along the street, big eye sore. We have additionally been told we have to disclose we have erosion problems to potential buyers even though the last two boards won't even allow this as a converation.
This problem come to find out has been going on for years, and nothing has been done even though engineering reports have been iniitiated with no plans made. We purchased in 2014 and were never told there were any problems from builder, HOA or agent.
I guess now too much time has passed for pursuing legal action for contruction defect. There was a lawsuit by the HOA to the original builder in 2015 and was settled for $110K for defect, money was spent for who knows what. I feel though the issue is the past HOA Boards have passed the buck due to their incompetance and have not fulfilled their fudiciary responsibilities to maintain common areas. The money to fix now is massive as the problems are all over community. Bottom line is we want out of this area. I would never want to sell anyone a bumb steer however if the HOA doesn't recognize the problems, how is this to be addressed to potential buyer. There is a little more to this however this is the main jest. I feel I should go to an attorney to see my options if any?
Do you believe the issue presents a material fact, a defect? If so, be very careful what you decide not to disclose.
It would not be unreasonable to access legal counsel regarding the topic and your options.
Read the AAR Disclosure form and consider what obligations it stipulates:
This is probably not what you want to hear, but you are finding out the reality.
Typically HOAs don't cover problems for the entire community. Remember also the HOA is not some pie in the sky 3rd party. The HOA is you and your neighbors. There is typically not money in the reserve fund to cover huge issues like this. They would have to do special assessments and that gets to be a mess. Might make sense for you all to collectively address the issue, but might be easier and actually cheaper if you do what you can to resolve it yourself. You may need to build a retaining wall or some other fix at your expense.
I don't think the HOA, the city, the agent, or builder have liability. If you bought on a creek, lake, river or a place with a view, you should know as well as they might that there could be erosion issues. They really can't predict the future any better than you. Kind of like buying on the coast, there are potential for hurricanes. If you buy in Oklahoma, risk of tornados, buy in CA on a hillside, subject to creep, mudslides, wildfires. If you buy in the country, you may not have a great fire department, fire hydrants, or emergency services. There are risks everywhere. There are risks prices go down, interest rates go up and all kinds of other perils. Once issue I see with these types of drainage canals is that it's fine when you buy, but as town expands and moves in around you, more and more water gets dumped in these and causes issues.
If you know it is a problem and you want out, now is the time to move and cut your losses potentially. People buy all kind of houses I would never touch, but there always seems to be someone out there that has different wants, needs, desires, risk tolerance. You can sell it, just has to be at the right price, don't be afraid to get aggressive with the price. You may be in a situation not to make huge profits, but to move and elminate your risks.
You should talk to an attorney. I flipped through that disclosure link that Mike linked and it asks if there are soils, fissures, etc nearby. You need to be careful about putting yourself out there to get sued.
This is probably not what you want to hear, but you are finding out the reality.
Typically HOAs don't cover problems for the entire community. Remember also the HOA is not some pie in the sky 3rd party. The HOA is you and your neighbors. There is typically not money in the reserve fund to cover huge issues like this. They would have to do special assessments and that gets to be a mess. Might make sense for you all to collectively address the issue, but might be easier and actually cheaper if you do what you can to resolve it yourself. You may need to build a retaining wall or some other fix at your expense.
I don't think the HOA, the city, the agent, or builder have liability. If you bought on a creek, lake, river or a place with a view, you should know as well as they might that there could be erosion issues. They really can't predict the future any better than you. Kind of like buying on the coast, there are potential for hurricanes. If you buy in Oklahoma, risk of tornados, buy in CA on a hillside, subject to creep, mudslides, wildfires. If you buy in the country, you may not have a great fire department, fire hydrants, or emergency services. There are risks everywhere. There are risks prices go down, interest rates go up and all kinds of other perils. Once issue I see with these types of drainage canals is that it's fine when you buy, but as town expands and moves in around you, more and more water gets dumped in these and causes issues.
If you know it is a problem and you want out, now is the time to move and cut your losses potentially. People buy all kind of houses I would never touch, but there always seems to be someone out there that has different wants, needs, desires, risk tolerance. You can sell it, just has to be at the right price, don't be afraid to get aggressive with the price. You may be in a situation not to make huge profits, but to move and elminate your risks.
Thank you for your comments. I thought the HOA Board was it's own entity, an elected governing board whom's responsibilities are to insure compliance to the CC&R's. In these documents it states they are to maintain the common area's etc..etc..This is where the rub comes in. They have done nothing to insure proper maintenance, water drainage systems to these hillsides. There actually used to be erosion committee however those went away plus the funds in reserve for it. Why bother to have such bylaws if they actually mean nothing, why do I pay dues? Guess I am confused. One reason why we purchased in here was because there was and HOA to oversee and manage things. Unlike Virginia where three cars parked in your front yard was part of the scenery. I have contacted an attorney.What a mess..sad, we really liked our home.
Keep in mind that the HOA might not be held accountable for an "act of god/nature", that's why responsible homeowners have property/liability insurance and most lending institutions mandate such coverage prior to lending.
The item as the OP brought up would be better addressed with the original builder/developer and depending on how long ago the home was built or the landscape altered, that ship may have sailed long ago. At the least, they need to consult a local real estate attorney to determine what legal recourse they may or may not have.
Why bother to have such bylaws if they actually mean nothing, why do I pay dues?
So you can vote those incompetent fools out. Remember, although the HOA Board has the authority and responsibility to act in the best interest of the property owners, it's the owners who elect them. If you elect idiots, expect and idiotic action.
My HOA has a clause that allows for a recall based on malfeasance or dereliction. Check yours to see if dereliction is a basis to mount a recall. A recall based on dereliction is a kiss of death and if charged and sustained, they might as well sell and move away as their respect level is in the toilet.
So you can vote those incompetent fools out. Remember, although the HOA Board has the authority and responsibility to act in the best interest of the property owners, it's the owners who elect them. If you elect idiots, expect and idiotic action.
My HOA has a clause that allows for a recall based on malfeasance or dereliction. Check yours to see if dereliction is a basis to mount a recall. A recall based on dereliction is a kiss of death and if charged and sustained, they might as well sell and move away as their respect level is in the toilet.
Interesting you mention, there was a recall and they were booted out, new board went in. Not much better than the old ones and most remain on the New Board for this year. I love your comment about electing idiots, kinda like our current govenment huh?. Sad..some folks just don't get it. Frankly if we can leave here, no more HOA, think I would rather take my changes with ones idea of front yard decor than go through this again. I have an appointment with real estate attorney whom is real familar with the mess going on here.
Cheers..
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