TO HOME GURU

[CANDYCANE]

If the HOA retains the responsibility to maintain the roads, can't they be held responsible if a lawsuit should arise,in conjunction with the state? If I were an attorney I sure would argue the issue. Thanks for all of your help.

 

[Tracey]

If the HOA is a partnership among the homeowners, then all owners are jointly liable for the HOA's debts. If the HOA is a corporation, then the owners will be liable because they have undercapitalized the corp & failed to purchase insurance. This is called piercing the corporate veil.

Time to get this issue on the agenda for the next meeting. Send letters to all owners warning them that their necks are sticking WAY out because the HOA hasn't bought insurance, and moving to amend the bylaws to require the HOA to purchase insurance.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.