NC encourages HOA-owner disputes to be resolved through negotiation and mediation before litigation. NCGS 7A-38.3F provides for voluntary mediation. Owners may also file complaints with the NC Real Estate Commission against licensed community managers.
Before filing suit, many HOA governing documents and NCGS 7A-38.3F authorize mediation of disputes between associations and owners. The Dispute Resolution Commission maintains a roster of certified mediators. Mediation is confidential and non-binding unless the parties reach agreement. For disputes involving enforcement actions, NCGS 47F-3-107.1 requires a hearing before fines can be imposed, with notice to the owner and an opportunity to be heard. Owners may appeal board decisions through procedures in the bylaws. Lawsuits involving HOA covenants are typically filed in Forsyth County Superior Court. Licensed community association managers are regulated by the NC Real Estate Commission and must follow rules on trust accounting and conflicts of interest. Owners can file verified complaints with the commission.
Failure to hold a required hearing before imposing fines can invalidate enforcement and expose the HOA to attorneys fees under NCGS 47F-3-120.
See how Winston-Salem's dispute resolution rules stack up against other locations.
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