Withdrawing from an HOA can be virtually impossible

Q. As regular readers of your column, we felt perhaps you might be able to enlighten us regarding the feasibility of withdrawing from our homeowner association. We are on the fringe of our association's property. The main group of homes is accessed by a beautiful entrance, consisting of a lovely sign, trees and waterfall. The streets within the area are not owned by the city and have decorative lighting and street signs. The five homes on our street are located across a power line right of way from the others and we are not physically connected to the others. We have no fancy street signs, lighting or other amenities enjoyed by the other residents of the association. We pay $600 a year for no amenities and must abide by all association rules. Can you give us your assessment of what it would take to get out of the association?

A: One of the basic principles of an association is that it requires mandatory membership. The only statute that pertains to the termination of an association is NRS 116.2118. This set of law pertains to the termination of the entire association and not just a few of the homes within the association.

An association may be terminated only by the agreement of the unit owners. At least 80 percent, or a higher percentage if required in the association's governing documents, of the homeowners must agree. The law provides for a series of actions that must be taken in order for the association to properly be terminated.

The state law does not address the position of the mortgage lenders in the termination of an association. The reader would need to review the governing documents of the association, specifically a section that is generally entitled "material changes" in the amendment section of the covenants. This section of the covenants require the approval of some percentage of the mortgage lenders if there are any significant changes made to the governing documents and to the subsequent operations of the association. If the association should grant a certain group of homeowners the right to separate from the association, does the association then set a precedent? Does the separation of a few undermine the concept of the association in the first place? Obviously, the right to allow a separation of unit owners as members of the association will fall under material change section of the covenants.

As to the readers who wish to separate, their chances of legally separating are extremely slim if almost nonexistent. There is a very old expression: "Let the buyer beware." I can not stress enough the importance of a potential buyer understanding what his or her obligation will be to an association, and the importance of reviewing the governing documents prior to purchase. Buyers need to know what they can and cannot do as residents within that association. Issues such as this one need to be discovered prior to purchase and not after purchase.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759. Questions may be shortened and are subject to editing.