Condo Damage Attorney – Only Homeowners May Bring Enforcement Actions In An HOA Dispute – And A Sale May Extinguish Such Rights
A homeowner looking to bring an enforcement action or claim damages against their HOA must do so while they still own the property governed by the HOA in question. The California Court of Appeal held that a homeowner no longer has standing to make a claim against an HOA after their property is sold. Which means, if you plan to make a claim against your HOA, but sell your property prior to filing said claim, you no longer have standing to bring suit and your claim is extinguished by operation of law.
In the precedent setting case [Farber v. Bay View Terrace Homeowners Ass’n, (2006) 141 Cal. App. 4th 1007] a seller was sued for damages relating to the nondisclosure of common area repairs. In the action, the buyer claimed the former homeowner failed to disclose the common area repairs during escrow. In turn, the homeowner filed a cross-claimed against the HOA. Because the repairs at issue were made to a common area, the former homeowner considered the HOA to also be at fault. At trail, the court sustained the HOA’s demurrer to the cross-complaint. This holding was on the ground that the former homeowner lost standing to bring an enforcement action against the HOA following the sale of their property. The Court of Appeal agreed with the trial court and affirmed their original ruling. The Farber Court held that “One who no longer owns land in a development subject to reciprocal restrictions cannot enforce them, absent showing the original covenanting parties intended to allow enforcement by one who is not a landowner.” Id at 1011.
Therefore, any homeowner considering an enforcement action against their HOA – pursuant to Cal. Civ. Code § 5975 – is obligated to file a claim before selling or conveying their interest in the property governed by presiding HOA.
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