‘Voluntary’ Associations

 Mar 16, 2013 Posted by:“fred f” hoahelpaz

Translation: You voluntarily joined and agreed to abide by the rules…

This sounds good but the courts got it wrong. No homeowners association is voluntary today nor did buyers voluntarily join either. A recent California court ruling stated that they (HOA) are “imposed upon” both the municipal mandated private entity and the buyers (members).

Common Interest Communities of all forms are “coercive”; in nature. Each one requires that its residents live by an extensive set of private rules, private taxation, and private enforcement of remedies. If a purchaser has no bargaining power in terms of the existing private governance frame work of the planned community, and if a purchaser’s only viable choices must come from a menu with nothing but planned communities on it, then why bother scaring the purchaser about the unpleasant possibilities of living in a planned community?

While the deed of trust and related financing forms are lender driven (and dictated in large part by the apparent requirements of HUD and the secondary mortgage market). on a take-it or-leave-it basis; in other words, they are contracts of adhesion. One recent commentator on contract law in general hits the nail on the head when he compares consumer contracts with business-to-business contracts.

He notes:
The most notable difference between consumer contracts and business-to-business contracts is that consumer contracts are virtually never negotiated. They appear on forms prepared by the business generally in its role of seller, and are offered to the consumer on a take-it or-leave-it basis; in other words, they are contracts of adhesion.
Adhesion contracts are OK for buying a car or flashlight but a whole different matter when applied to housing. Except local and State leaders refuse to acknowledge this fact or stop supporting this form of housing through contract. Because it gives business a way to control and profit off consumers which business uses to obtain funds to financially support those leaders election campaigns and the leaders benefit by load shifting their leadership responsibilities onto the private sector.