March/April 1998 - Can a homeowners association record a notice of noncompliance with the
CC&R's against one of its members in the countv’s land title records? A recent
judicial decision held that a homeowners association cannot file the notice of
noncompliance with the county recorder’s office against one of its member. In Ward
v. Superior Court, 97 D.A.R. 6456 (May 22, 1997, (the judges held that there was no
authority for the country recorder to acept the notice of noncompliance.
The homeowners association in Ward v. Superior Court, claimed that the plaintiff. Ms.
Diane Ward violated her CC&R's by painting her house a color which the association
found "hideous' and "offensive". Ms. Ward refused to repaint her house, so
the homeowners association filed a notice of noncompliance with the counrv recorder.
According to the CC&R's, the homeowners association had to file a notice of
noncompliance with the county recorder within a certain time period or else accept any
violation of the CC&R's. Later, when Ms. Ward went to refinance her home, she had to
post an additional $ 10,000. 00 bond in order to secure the new loan because her title was
clouded bv the notice of noncompliance.
Generally, a homeowner's association is not allowed to prevent an owner of a home from
enjoying the use of that home fully for failing to comply with the CC&R's without some
type of legal action.
Filing a notice of noncompliance with the county prevents the owner
from enjoying the property fully because it makes it more difficult
to sell or refinance the home. Thus, the courts will not allow
homeowners associations to file notices of noncompliance with
the county because it clouds the title of the property which
deprives the owner from using the property fully. Therefore,
future homeowners associations will have to review their CC&R's
to see if the prescribed remedies in the CC&R's do not violate
this rationale and holding.
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