There's nothing like a controlling HOA (Homeowner's Association) to make some homeowners see red. We have all heard the horror stories over the years, although many associations have relaxed and have come to realize that they are there to serve the homeowners rather than restrict them.
In Arizona, we recently passed legislation that limits the restrictions that homeowner's associations can place on the signs homeowners can display when they are selling their home. That new legislation, SB 1062, just went into effect on September 19, 2007. If you would like to read the exact language of the bill, see SB 1062. This also requires that HOAs NOT prohibit the installation of a flagpole and the flying of our American flag (among others) and the display of political signs immediately preceding an election. To read the revised statutes themselves, see ARS 33-1261 and ARS 33-1808.
HOAs are not allowed to prohibit the display of a for sale sign and a sign rider as long as it is on the owner's property. However, they are allowed to limit the size of the sign and rider to industry standard sizes (18" x 24" for the sign, 6" x 24" for the rider).
There is a gray area (no pun intended) in the regulation of the color or design of signs. There is no provision for the HOA to regulate color; however there is no prohibition against that type of regulation either. My prediction is that while the majority of HOA's will be reasonable and allow the currently used for sale signs of the brokerages representing their sellers, there will be a few who will try to regulate content and/or color scheme. I believe that in some areas, we will see litigation over this issue unless the HOAs and the owners can work together to find a resolution.
There may also be HOAs who still prohibit the placement of these signs even after the law is in effect. If you know of such a violation, Tucson Association of Realtors is asking that you contact them by email at anne@tucsonrealtors.org. Additionally, if you would like to file a complaint with the HOA dispute resolution department as opposed to filing a lawsuit, go to http://www.dbfs.state.az.us/OA/Downloads/HOA%20Package04012007.pdf.
ARS 33-1261 - http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/33/01261.htm&Title=33&DocType=ARS
ARS 33-1808 - http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/33/01808.htm&Title=33&DocType=ARS
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I'm not surprised...are you? :-)
Daryn
http://activerain.com/nationaltitleservices
The state of Florida needs to have the same legislation to protect homeowners here. It is rediculous that people can't post a "for sale" sign in their yard.
Sean Allen
I am forwarding this to my local association. The HOAs here make dictators seem soft. There is even a ban on balloons in some communities. South Carolina needs to implement these regulations as soon as possible.
Thanks so much for sharing this.
This is good law, but I can see the other argument as well. Imagine if you will a 250 home sub division with 70 homes for sale. That would actually be against the sellers' best interests to place for sale signs in that community.
I specialize in selling real estate in a lake community called Apple Valley that has some unique rules on real estate for sale signs. The size restriction is not the issue but where we can physically place the for sale signs can be a serious challenge. They want the for sale sign
within 10 feet of the home. People driving past these homes rarely can see the for sale sign especially on a treed or wooded lot. It would be wonderful if this sign rule was modified to allow signs at the street like most all other areas in Knox County Ohio.
Simon, I can see how in your scenario having a buyer see all those other for sale signs might raise some red flags or at least produce lower offers. However, if the buyer is represented by an agent with access to the MLS or if the buyer knows how to search the Internet to see what's for sale, then you are going to get the same result. In that case having the signs or not having them wouldn't make much difference.
Is there any other reason that having the sign up would not be in the seller's best interest? Also, sellers still have the option to forego the sign on their own property if they so choose.
Robin, FYI, Corte Bella, near Sun City West has defined the color of the sign and the sign rider, as well as placement of open house signs, so it has already happened in Arizona.
I have posted about HOA's before and so I'll rant again here. If you don't like the way the HOA is run by your board, get involved in it and help make the changes you desire.
In the community of zero lot line homes that I live and list in (plus serve on the HOA board), we have had many conversations about placement of for sale signs over the past 4 months. It finally took a trip to the city to validate that indeed the home owner did own the land under the driveway and a small amount on both sides, so that a sign post could be installed street side, and still be within the guidelines of the law.
Fortunately, we have not had any conversations about restricting the color or content of the actual sign.