Feuds between homeowners and homeowners associations have escalated to painful levels. Homeowners have faced severe fines, liens, and foreclosures, while HOAs confronted massive fines and damages, higher liability insurance premiums, and backlash for property value declines. But tensions are easing as state legislators pass reforms and buyers press HOA boards for more-transparent homeowners association guidelines. The improved landscape is a significant new benefit of buying in an HOA community.
What Causes Homeowners Association Disputes?
HOA disputes often escalate because of HOA unchecked power and insufficient capability to enforce violations. "Some HOAs can be overzealous in enforcing [penalties for] minor infractions," says Raul Gastesi, partner and cofounder at Gastesi Lopez Mestre & Cobiella, a Miami-based law firm. "On the other hand, there are homeowners who refuse to follow the rules or pay their dues."
When HOAs operate without proper oversight, this unchecked authority can lead to extreme fines with devastating consequences. "Many HOA declarations allow fines of $100 per day [and sometimes much more], per violation, with no cap," explains Chad D. Cummings, a real estate and tax attorney and CEO of Cummings & Cummings Law, which serves clients in Florida and Texas. "A dispute over lawn height or flag placement can become a $5,000 debt within weeks. Entire homes have been lost over mailbox paint or unapproved potted plants."
States Act to Limit Homeowners Association Guideline Fees and Penalties
Oversight of HOAs exists or is coming from some states. In July 2025, California enacted a law that caps HOA fines at $100 per violation, eliminates late fees and interest charges, and expands homeowners’ rights in HOA dispute violations. Legal experts predict this law, Assembly Bill 130, could serve as a template for other states.
“States like Florida, North Carolina, and Minnesota are all exploring HOA oversight bills," says Luke S. Carlson, owner of LS Carlson Law, which operates in California and Florida. The California law gives reformers a legislative model that's homeowner-friendly, business-savvy, and politically viable, he adds.
Homeowners Association Documents You’ll Need and Questions to Ask
Many states require sellers to disclose various homeowners association guidelines and documents, including the Covenants, Conditions, and Restrictions (CC&Rs) and HOA bylaws, according to Deanne Rymarowicz, senior counsel at the National Association of REALTORS®.
“Request the resale package or the disclosure package from the first conversation with the agent or manager, since they will have bylaws, rules, budget, dues history, and possible spending plans," says Alexei Morgado, a Florida real estate agent and CEO of Lexawise Real Estate Exam Preparation.
When you receive the homeowners association documents, read them, recommends Julie Gordon, who owns a townhome in Chicago and serves as president of her 20-unit HOA board. “Don't skim them. When HOAs work well, they're great. But you have to be willing to follow the rules."
Work through the documents with a real estate agent, advises Rymarowicz. “Real estate agents are not mind readers,” but they can help sift through the details and get questions answered, she explains. Buyers should also understand what they're giving up by living in an HOA, such as parking RVs on the property or running onsite businesses without incurring fees.
Request These Homeowners Association Documents
You’ll want to request documents including:
- Complete governing documents, including CC&Rs
- Board meeting minutes (for at least 12 months, preferably three years)
- Enforcement history demonstrating equal rule application
- A record of financial reserves and collection issues
- All pending or threatened litigation
- Board insurance coverage and vendor relationships
Ask for Samples of Homeowner Association Communications
It’s important to explore the board culture as well as the rules. Morgado recommends asking for recent communication samples. "This way, you can determine whether this HOA communicates appropriately and clearly or is operating on autopilot."
Residents often provide the most valuable intelligence. "Talk to neighbors or families who have been in the community for many years," Morgado advises. Their input and experience provide more reliable insight than formal reports.
Ask Homeowners Associations These Questions About Handling Disputes
Dispute management has been an expensive point of contention between homeowners and HOA boards. Learn how a homeowners association handles complaints and disputes by asking questions such as:
- What is the formal process for filing a complaint?
- How are disputes between neighbors handled?
- Is there an organized system to handle issues or is it done ad hoc?
Legislative and Buyer Pressure Leads to Homeowners Association Flexibility
The combination of legislative pressure and buyer demands is creating more-flexible HOA communities. "When the HOA sets clear but flexible guidelines, buyers are generally more at ease," Morgado says. Communities allowing sustainable improvements and mixed-use areas, or reducing remodeling restrictions, are attracting more buyers, he adds.
With new HOA laws capping violations at $100 and more transparency in HOA documents, you may have more power than you realized, whether you’re buying into or own an HOA property. The tradeoff is you’ll also be responsible to review and understand what you’re agreeing to.