How To Avoid HOA Issues When Transferring A Property Into A Trust – Florida

In Florida, an individual who buys a home in a neighborhood or building with a voluntary homeowners’ association (HOA) is not necessarily obligated to join it. However, there are mandatory HOAs that come with the purchase of a property in the form of a contract. 

Consequently, people living in neighborhoods with an HOA are affected by some rules, which sometimes limit what someone can or cannot to its own property. 

In this article, you will discover how to avoid HOA issues when transferring a property into a trust in Florida. 

How to Deal with a Homeowners Association in Florida – Best Practices 

In Florida, a homeowners’ association (HOA) is an organization of property owners that administer and enforce specific rules for a subdivision, planned community, or condominium. 

In many cases, there are HOAs that are structured as corporations, which makes them legal entities capable of enforcing contracts with homeowners. 

All rules and covenants within an HOA are enforced by those in charge of the HOA, which can be either a developer-appointed board of directors or a homeowner-elected to the role. 

To avoid issues while dealing with an HOA in Florida, we recommend homeowners follow a set of best practices, such as: 

• Knowing the HOA’s rules and bylaws in detail
• Ensuring good communication with other members of the HOA
• Staying up to date with other HOA associates
• Getting approval before making changes to a property
• Paying all fees and dues on time 

Homeowner Association in Florida- Pros vs Cons 

Generally, acquiring a property attached to an HOA is good to preserve the value of the land, since all the HOA’s rules and bylaws are designed to avoid situations like someone painting a house an odd color or parking a commercial trailer in someone else’s driveway. 

However, nothing in life is perfect- neither are HOAs. When you sign a contract with an HOA, it means you cannot necessarily do what you want with your property, even though it is yours. 

Plus, the HOA can foreclose a property in case someone falls behind its association dues, such as mortgage installments. In case an HOA succeeds to foreclose a property, the association has the power to auction it off and evict its owner. 

How to Transfer Property into a Trust in Florida the Right Way 

Typically, many Florida residents choose to transfer their property into a trust as a way to safeguard it in the future. A good example is to avoid probate upon the death of the property owner and to seize tax benefits. 

To transfer your property into a trust in Florida, you will need to prepare a deed stating that the property is owned by the trust. We do not recommend you do it by yourself; seek guidance from an expert real estate attorney to ensure your deed is properly drafted. 

In this sense, to be deemed as legally valid, a Florida deed must contain:

• The property owner’s full name
• The name of the trust (or the name of the new owner of the property); and
• The legal description of the property. 

Once the deed is finished, it must be signed and notarized to be recorded by the local county’s office. 

Is it Necessary to Notify the HOA when Transferring Property into a Trust in Florida? 

The answer to that question varies according to each specific case.

Commonly, homeowners in Florida are not legally required to notify an HOA of changes in ownership of their property. Nonetheless, notifying an HOA is a good way to avoid further issues.

In many cases, HOAs have specific rules that require owners to notify them before selling a property. Consequently, probably the HOA will play a mandatory role in the sale process.

For instance, an HOA in Florida could enforce a rule stating that they have the right to charge all outstanding fees from a previous property owner before they can be passed on to another person.

There are cases where an HOA in Florida charges for due paperwork drafted for a new homeowner in the association. However, notice that the previous owner of the property is the one who must compensate the HOA for any fees that may incur from the transfer of interest.

Be aware, as there are cases where the HOA statute requires the owner of the property to notify the association of any changes to the property- including ownership changes. Hence, not doing so can generate an unpleasant fine and a lot of headaches. 

We Can Help You to Transfer a Property into a Florida Trust While Dealing with an HOA 

Dealing with an HOA is never an easy task, especially when you are trying to transfer a property into a trust in Florida. Avoid uncertainty today by seeking help from an expert real estate attorney. 

Get in touch with Jurado & Farshchian, P.L. today by calling (305) 921-0440 or emailing Romy@jflawfirm.com to schedule a consultation.

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