Texas law provides a formal alternative dispute resolution (ADR) process for HOA disputes in Dallas. Under Texas Property Code Section 209.0071, either a homeowner or the HOA may request mediation or arbitration before or during litigation. The association must participate in ADR if properly requested. Many HOA governing documents also include mandatory internal grievance procedures that must be exhausted before formal ADR.
Texas Property Code Section 209.0071 establishes the right of either party (homeowner or HOA) to demand alternative dispute resolution for disputes arising under the association's governing documents or the Property Code. If ADR is requested before a lawsuit is filed, the other party must participate in good faith. If requested after litigation begins, the court may order the parties to mediation. The costs of mediation are typically split between the parties unless the governing documents specify otherwise. Many Dallas HOA declarations include an internal appeal or grievance process that should be followed before requesting formal ADR. Under Section 209.006, before an HOA may suspend an owner's rights or charge a fine, the owner must be given written notice and an opportunity to be heard at a board meeting. The notice must state the date, time, and place of the hearing. The property owner may attend the hearing in person or by written response. Dallas County courts handle HOA litigation when ADR is unsuccessful, with cases typically heard in the district courts.
Failure of an HOA to participate in properly requested ADR may result in court sanctions and can impact the HOA's ability to recover attorney's fees. If an HOA suspends rights or imposes fines without providing the required hearing under Section 209.006, the action may be voided by a court.
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