That the system is rigged in favor of the corporation in residential associations is irrefutable. Housing consumers are required to sign a “take it or leave it” contract when they buy a house, without knowing or understanding what they are getting into. Then, when things head south, as they are wont to do, the homeowners are described, by the HOA industry as horrible, irresponsible people for failing to abide by the provisions in the supposed contract that they allegedly agreed to. Even attorneys are left scratching their heads trying to decipher the mountain of legalese designed to strip homeowners of rights and property.
Bill Davis joins us On The Commons. Bill, a Texas attorney is one of a handful of attorneys across the country who represents homeowners in HOAs. Unlike the “experts in HOA law” who typically represent associations and have an inherent conflict of interest when it comes to working for the owner, Bill has no ties to the industry nor does he owe allegiance to the corporations that govern these developments. We talk to Bill about one of the most heinous powers associations have been given by misguided legislators, the power to FINE their neighbors seemingly for no other reason other than they happen to be in a bad mood. More than one court has found fines to be an unconstitutional delegation of a police power, however the very people who benefit the most from this practice have convinced legislators that it is constitutionally permissible to “sign away your rights”. Yes, it goes back to that contract I was talking about. Listen to some of the tools homeowners may have when it comes to fighting the abuses of the unfair practice of arbitrarily punishing a neighbor.