Can an agent enforce payment of non mandatory POA dues?

Question

My community has a POA. Our covenants have no mandatory dues written or listed anywhere in them. 
Our POA board interchanges the use of HOA/POA terminology to illicit mandatory dues from property owners selling their homes and land.  The POA a few years back hired a property management company who were also real estate agents to manage the financial side of the association. In doing so they were given a set of bylaws stating the association had mandatory dues. These bylaws did not align themselves to our covenants. Anyone not paying  those annual dues were told they would have to pay when selling their property at closing.  The management company shared this information with all the other realtor groups in the county. Also, informing title companies there was a transfer fee to be paid by seller at time of closing.  If the seller refused to pay any " outstanding" fees the sale of property could /would be jeopardized  and risked the sale not going through.  This situation is illegal, the covenants do not subscribe to mandatory fees of any description in the entirety of the document, and therfore real estate companies have no right to enforce this and should stop demanding this from sellers. How can we stop real-estate agents giving potential buyers false information about mandatory dues and transfer fees, and forcing sellers to pay for fees that are not mandatory?

Barrett Henry · Answer

This is a legal dispute that needs a real estate attorney, not a real estate agent's opinion.

If your covenants genuinely do not include mandatory dues and the POA board and management company are fabricating obligations that don't exist in the recorded documents, you have a strong legal case. The covenants are the governing document, and anything the board or management company adds through bylaws that contradicts the covenants is likely unenforceable.

Hire a real estate attorney who specializes in HOA and POA law in your state to review your covenants, the bylaws, and the actions the management company has taken. If the attorney confirms the dues aren't mandatory, they can send a cease-and-desist letter to the management company and the POA board, and notify the local title companies and real estate brokerages that the transfer fees and mandatory dues are not supported by the covenants.

If multiple property owners in your community are affected, consider organizing and splitting the cost of legal representation. A single attorney letter on behalf of a group of homeowners carries more weight than individual complaints.

Julianne Clark · Answer

Sounding like you and your frustrated neighbors need to consult legal advice through a local real estate attorney familiar with the area, community and has handled closings in the community.  I can understand your frustration and really do not think you will get the answer you are looking for on this forum.  To many unknown variables and all states have different laws pertaining to property management.

Kevin Neely · Answer

An agent cannot enforce payment of HOA dues that are clearly non-mandatory, but the question is worth examining carefully because HOA membership status is not always as simple as it sounds.

In Tennessee and throughout the Southeast, some neighborhoods have voluntary property owners associations (POAs) where membership and dues are optional because the association was never properly established as a mandatory covenant. In other cases, dues appear voluntary but the recorded deed restrictions actually do make them mandatory, and a buyer or seller who has not read the governing documents might incorrectly assume otherwise.

If you are disputing whether POA dues are actually mandatory, the first step is to pull the recorded deed restrictions, subdivision plat, and any declaration of covenants from the county records and read them carefully. If the documents clearly do not create a mandatory membership obligation, no party, including a real estate agent, has legal authority to require you to pay dues at closing. If there is ambiguity, a real estate attorney can interpret the documents and give you a clear answer. Agents who pressure buyers or sellers to pay questionable association fees should be asked to provide the specific recorded document that creates the obligation.

Kevin Neely & Kaitlynd Robbins | K2 Sells

Amanda Courtney · Answer

No, an agent can’t enforce payment for a non-mandatory POA, but they can help clarify whether the association is truly voluntary or not. Sometimes joining a POA gives access to community benefits like amenities, landscaping, or maintenance that can help resale value later. Always review the community’s governing documents before deciding.

Can an agent enforce payment of non mandatory POA dues?

Answers (4)

Barrett Henry

Julianne Clark

Kevin Neely

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Amanda Courtney

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