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TomR4 (Indiana)
Posts: 6
Posted:
Homeowners have just recently taken over control of our HOA from the developer (who went belly up during the current business downturn.) The developer apparently made no attempt to enforce the covenants while he was in control of the HOA. The current board seems to desire to start enforcing the various covenants and rules.

The covenants contain the following clause:

"In addition to any other remedies herein provided, present or future Owners or the Association shall be entitled to injunctive relief against any violation or attempted violation of any such covenants and restrictions, and shall, in addition, be entitled to damages for any injuries or losses resulting from
any violations thereof including reasonable attorney fees, but there shall be no right or reversion or forfeiture resulting from such violation."

From an enforcement standpoint, what is the effect of this clause? To me, it would seem to say that the HOA can charge the offending homeowner with fines and legal fees----but is prohibited from collecting these "penalties" by obtaining a lien and/or foreclosing on the offenders property.

As a related question, what are "typical" legal costs when a HOA is forced to sue an offending homeowner for covenant violations? A search on the internet only seems to show highly contested cases where the legal fees were in the tens or hundreds of thousands of dollars.
TimB4 (Tennessee)
Posts: 21,047
Posted:
Quote:
Posted By TomR4 on 01/23/2012 2:27 AM

"In addition to any other remedies herein provided, present or future Owners or the Association shall be entitled to injunctive relief against any violation or attempted violation of any such covenants and restrictions, and shall, in addition, be entitled to damages for any injuries or losses resulting from
any violations thereof including reasonable attorney fees, but there shall be no right or reversion or forfeiture resulting from such violation."

Tom, as you guessed, if a member violates the covenants the association (or any member) may petition the court for relief (i.e. have them put it back the way it was). It does not give the association the right to fine. It does provide that if there were financial losses caused by the infraction, then the Association may recoup them plus reasonable attorney fees.

Per uslegal.com reversion is a future interest in the property. This would be rarely applicable.

Yes, you are correct, that language also says that the Association may not foreclose on a property based on violations.

Quote:
Posted By TomR4 on 01/23/2012 2:27 AM

what are "typical" legal costs when a HOA is forced to sue an offending homeowner for covenant violations?

Depends on the rates and who does the work. Lawyers charge by the hour. To research, draft and mail a letter it might be 1/2 hour. costs could be anywhere from $100-200 for that time. If the work was done by an associate vs. a partner it might only be $60-75.

We were once charge $60 for a 15 min phone conversation.

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