QUESTION

How to dissolve a HOA in California?

Asked on Apr 17th, 2015 on Real Estate - California
More details to this question:
Please provide detailed steps and info. and how much estimated legal fee will be required.
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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Probably, you can't. After the 1980s and 1990s, when almost every subdivision and condominium developer was sued by the homeowners associations (HOAs) they had set up, developers tried hard to design subdivisions without common area, so that there would not be an HOA set up and ready to sue them. If your subdivision or condomnium has an HOA, then it probably has common area. How are the homeowners going to deal with the common area without an HOA? Without the HOA, then all the owners will own the common area as tenants-in-common. That means each owner individually will be personally liable for claims for injuries, deaths, and property damage which occur on the common area. Insurance will cover most claims, but not all, and not for damages that exceed the limits of the insurance. If your community has common area, then you need the protection of an HOA corporation. Why do you want to dissove your HOA? If you are unhappy with decisions the HOA has made or its enforcement of rules and assessments, you should get people who agree with you voted onto the HOA Board of Directors. The Board makes those decisions. If you can't get your own majority onto the Board, then you won't be able to get the votes you would need to cancel or amend the CC&Rs to eliminate the HOA. The Davis-Stirling Act provides that an amendment of the CC&Rs requires approval of the owners. If the CC&Rs do not specify the percentage approval required, then the Act provides for majority approval. If the CC&Rs require a higher percentage and you can't get it, because not enough members will vote, there is a procedure for obtaining court approval, as long as the amendment is reasonable, a majority approved, and a good faith effort was made to get the needed supermajority. You may have trouble proving to a judge that completely revoking the HOA parts of the CC&Rs or the CC&Rs in their entirety, is reasonable. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack  
Answered on Apr 17th, 2015 at 1:24 PM

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