Do we need to setup a HOA? 1 Answers as of April 20, 2012

We live in a relatively new development of only 7 homes in Illinois. The developer/builder A went bankrupt and we purchased the last lot from the bank and are the only one of the 7 homes not built by the original builder A. Builder A's lawyer sent one resident a letter stating that we need to setup an HOA. We are already bound by covenants agreed to at closing, so why do we need to go through the hassle/file/pay insurance/etc. of an HOA? We have a small common area that needs mowing and we all agree to just pay our share of it, but our one neighbor insists on creating a HOA. Can we refuse?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Sultan Law Office | Gregory Sultan
Without seeing the Covenants, conditions and restrictions of Record it is difficult to say if you still need an HOA. From the facts you have given I would say it would be appropriate and recommend that you do set one up. If you own an area in common and someone is hurt on it or dumps on it all the owners will share in any responsibility. Their are other things that you may want to control or limit and it is easier to work those out before you have an actual problem.
Answer Applies to: Illinois
Replied: 4/20/2012
Click to View More Answers: