How HOAs Really Work in North Carolina (A Lawyer’s Breakdown)

Most people assume buying a house means they can do whatever they want with it. But if you’re in an HOA, you might have a lot less control than you think — and you’re paying monthly dues for the privilege.

HOA issues are the number one source of buyer remorse Tiffany Webber sees in her practice. In the video below, she breaks down what HOAs actually are from a legal standpoint, the real power they have over your property, and what you need to know before you buy into one.

Watch the Full Video

Here are the key takeaways, or watch the full video for Tiffany’s complete explanation with real examples.

An HOA Is a Corporation, Not a Neighborhood Committee

The biggest misconception about HOAs is that they’re just a group of neighbors with opinions. They’re not. An HOA is a corporation — usually a nonprofit — with actual legal authority over your property. When you buy in an HOA community, you automatically become a member of that corporation. There’s no opt-out.

The rules that govern your property are called covenants, conditions, and restrictions (CC&Rs). These documents are attached to the land itself and transfer to every new owner. It doesn’t matter if you never read them or never agreed to them — when you bought the property, you became bound by them.

In North Carolina specifically, HOAs are governed by the North Carolina Planned Community Act, which determines what powers the HOA has and what procedures it must follow.

What HOAs Can Actually Do to You

This is where most people are surprised by just how much authority an HOA has.

They can fine you. Violate the CC&Rs — even unintentionally — and the HOA can levy fines. Tiffany shares an example in the video where clients installed a white fence, believing it met the CC&R requirement for “earth tones.” The HOA disagreed. The clients had to spend $8,000 replacing a brand new fence.

They can put a lien on your property. If you don’t pay your dues or fines, the HOA can place a lien on your house. In North Carolina, that lien has priority over almost everything except your first mortgage and property taxes. A $500 unpaid balance can balloon to $5,000 once legal fees and interest are added, and it can make selling your home a nightmare.

They can foreclose on your house. This is the one that shocks people. In North Carolina, if your delinquency reaches a certain threshold — at least 5% of your annual assessment — the HOA can initiate foreclosure proceedings. They have to go through the court system, but the authority is real. They can take your home over unpaid assessments.

They can restrict how you use your property. And it goes far beyond paint colors. HOAs can regulate the number of pets you have, whether you can rent your property, what vehicles you park in your driveway, when your trash cans can be visible, and even what curtains you have if they’re visible from the street — as long as it’s in the CC&Rs.

What You Can’t Do in an HOA

You can’t ignore the CC&Rs because you think they’re unreasonable. North Carolina courts consistently uphold CC&Rs unless they violate public policy or law. You can’t make changes to your property — even something as minor as adding a birdbath — without checking whether it requires architectural review committee approval first. And you can’t refuse to pay assessments because you don’t use the amenities. “I don’t use the pool” doesn’t matter. If the CC&Rs say you pay, you pay.

What You Can Do

You’re not powerless — but you have to be proactive.

Read the CC&Rs before you buy. In North Carolina, sellers must provide these documents. Read every page. Tiffany recommends doing this before you even put in an offer — not after. It’s boring, but it’s better than a $10,000 surprise.

Attend meetings and vote. You’re a member of the corporation. HOAs in North Carolina must hold at least one meeting per year, and you have the right to attend and vote.

Run for the board. If you don’t like how things are being run, get involved. Most HOA boards are desperate for volunteers.

Request financial records. Under North Carolina law, HOAs must make their financial records available to members. If funds are being mismanaged, you have the right to know.

Things Every HOA Homeowner Should Know

Tiffany shares a few practical tips in the video that are worth highlighting.

Get everything in writing. If the HOA president verbally tells you your fence design is approved, that means nothing. Get written approval from the architectural review committee before you spend a dime.

Know the difference between rules and CC&Rs. CC&Rs are recorded documents that usually require a supermajority vote to change — often 67% or more of all owners. Rules are adopted by the board and are easier to challenge. If something seems unreasonable, figure out which category it falls into.

Know the Planned Community Act. If your HOA was created after January 1, 1999, it must follow specific procedures for meetings, voting, and enforcement. Some HOAs don’t follow these properly, which can invalidate their actions.

The Reality for Lake Norman Buyers

In the Lake Norman area, the vast majority of new construction is in HOA communities — Tiffany estimates around 80%. Statewide, the number is over 50%. If you want a newer home in Mooresville, Huntersville, Denver, Davidson, or Cornelius, there’s a good chance it’s going to come with an HOA. That’s not necessarily a bad thing — well-run HOAs maintain property values and community standards. But you need to understand what you’re agreeing to before you sign.

Watch the full video for Tiffany’s complete breakdown, including the real fence story and how HOA authority compares to easements and other property restrictions.

Buying a Home in an HOA Community? Read the Fine Print First.

At Thomas & Webber, we review CC&Rs and HOA documents as part of the closing process so our clients know exactly what they’re getting into. If you’re buying in the Lake Norman area and want to make sure there are no surprises, we’re here to help.

Our offices in Mooresville, Huntersville, and Denver serve buyers throughout the Lake Norman area, including Sherrills Ford, Troutman, Statesville, and beyond.

Email your contract to [email protected] or call us: (704) 663-1600