No they aren’t. They are hired organizations that can be fired upon contractual determination. If the people that hired them did not read the contract and make sure they were not setting themselves up, they just terminate the service.
Incorrect. An HOA is not a hired service. That is a property management company, which many HOAs also hire. But an HOA board itself is an elected group of owner/volunteers whose mandate is to enforce a contract of by-laws that every owner signs at the time of settlement.
” But an HOA board itself is an elected group of owner/volunteers whose mandate is to enforce a contract of by-laws that every owner signs at the time of settlement.”
The HOA is an entity to itself. It is made up of the owners of the association and retrieves money from the owners to maintin their property. But to be able to afford its business it uses the money given to it to pay the property management to do the work they are contracted to do on many occassions. And the HOA agrement is a contract within itself and require money to operate. So the entity by itself, is a contractual agreement.
In some state, like in mine, Washington, there are laws that maintain the parameters of an HOA. An HOA does not have to hire a property management company and can maintain its committments to itself. But those committments, like grass cutting and pruning, building repair (defined), painting, and the payment of a gross receipts tax (business and occupation tax) can be their responsibility to the owners and are hired to accomplish things like this. That makes them a business entity.
In the HOA I was in before I bought private, we even were responsible for the street and drain repairs and were not on the county maintenance schedule. That money has to come from somewhere if a property management compny is not under hire and the board is held responsible for the execution of it.
Maybe the term fired is not quite what it sounds like. Maybe disband after contractual committment would be closer to the action. So unless there is an escape clause in the HOA contract, it goes term depending on how it is written. Then it’s a free for all and it goes into encheatment law. Then it’s messy.
wy69