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Understanding Homeowners Association (HOA) Laws in North Carolina

Understanding Homeowners Association (HOA) Laws in North Carolina

Welcome to the Lancaster Law Firm blog! Homeowners associations (HOAs) play a significant role in many residential communities in North Carolina, governing everything from property maintenance to community amenities.


As real estate attorneys based in North Carolina, we understand the importance of understanding HOA laws for both homeowners and HOA board members. In this post, we will explore key aspects of HOA laws in North Carolina to help homeowners and board members navigate the complexities of HOA governance.


1. Formation and Governance


Formation of HOAs

HOAs in North Carolina are typically formed when a developer creates a planned community or subdivision. The developer establishes the HOA and creates governing documents, including the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and the HOA bylaws.


Governing Documents

The CC&Rs and bylaws outline the rules, regulations, and responsibilities of homeowners and the HOA board. These documents govern various aspects of community living, including property maintenance, architectural guidelines, and the collection of assessments.


2. Powers and Responsibilities

Enforcement of Rules and Regulations

HOAs have the authority to enforce the rules and regulations outlined in the governing documents. This includes addressing violations such as unkempt yards, unauthorized alterations to property, or violations of architectural guidelines.


Collection of Assessments


HOAs levy assessments or dues on homeowners to fund the operation and maintenance of common areas and amenities. The HOA has the authority to collect assessments and take legal action against homeowners who fail to pay.


3. Rights and Protections for Homeowners


Right to Due Process

Homeowners have the right to due process when facing enforcement actions or fines by the HOA. This includes notice of violations, the opportunity to contest charges, and the right to appeal decisions.


Access to HOA Records


Homeowners have the right to access certain HOA records, including meeting minutes, financial statements, and governing documents. Access to these records promotes transparency and accountability within the HOA.


4. Dispute Resolution


Internal Dispute Resolution


HOAs are required to provide an internal dispute resolution process for homeowners to address grievances or disputes with the HOA board. This process allows homeowners to resolve issues without resorting to costly litigation.


Mediation and Arbitration


If internal dispute resolution efforts are unsuccessful, homeowners may pursue mediation or arbitration to resolve disputes with the HOA. These alternative dispute resolution methods offer a less adversarial and more cost-effective approach to resolving conflicts.


5. Legal Compliance and Liability


Legal Compliance

HOAs must comply with state and federal laws governing nonprofit corporations, fair housing, and other relevant regulations. Failure to comply with these laws can result in legal liability for the HOA and its board members.


Liability Issues

HOA board members may face personal liability for decisions made on behalf of the association. It is essential for board members to understand their fiduciary duties and take steps to mitigate legal risks.


Understanding HOA laws in North Carolina is essential for both homeowners and HOA board members to ensure a harmonious and well-functioning community. By familiarizing themselves with the governing documents, rights, and responsibilities outlined in HOA laws, homeowners can effectively navigate the rules and regulations of their community. Similarly, board members can fulfill their duties and obligations while avoiding legal pitfalls.


At Lancaster Law Firm, we are dedicated to providing comprehensive legal support and guidance to homeowners associations and individual homeowners. If you have any questions or need assistance with HOA-related matters, please contact us.


Our experienced team is here to help you navigate the complexities of HOA governance and protect your interests within your community.



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Neither your receipt of information from this website nor your use of this website to contact The Lancaster Law Firm or one of its attorneys creates an attorney-client relationship between you and The Lancaster Law Firm. As a matter of policy, The Lancaster Law Firm does not accept a new client without first investigating possible conflicts of interests and obtaining/sending a signed engagement letter or email correspondence. Accordingly, you should not use this website to provide confidential information about a legal matter of yours to Lancaster Law Firm. 

No Legal Advice Intended: 

This website includes information about current, past, and future potential legal issues and legal developments for educational purposes only. Such information is provided for informational purposes only and may not reflect the most recent legal developments. Posted information is not intended, and should not be taken, as legal advice for a particular set of circumstances you may be experiencing. You should contact an attorney for advice on specific legal problems.

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