HOA Nightmares
Article Courtesy of FOX 29 - WFLX
   
Published: May 5, 2004

Should a potential buyer of your home be forced to buy a pricey county club membership as a condition of the sale? That's the heated question thousands in South Florida are grappling. A question dividing neighbors in many communities. A question you may soon face if you live in a country club community. 

The Hamlet in Delray Beach is home to more than 300-families. The country club community boasts lush landscaping, an 18-hole championship golf course and 24-hour security, but amid this serene setting, a legal battle simmers. 

Gil Stevens/The Hamlet Home Owner: "When we bought our home, there were no restrictions to whom we could sell." 

Restrictions now in place at The Hamlet require that homeowners can only sell their houses to buyers who agree to spend thousands above the price of the home on mandatory country club memberships. 

Gil Stevens/The Hamlet Home Owner: "That severely limits the market of home buyers, for not only my home, but anyone who wants to sell a house here." 

The decision to switch this community from voluntary to mandatory memberships passed with 2/3 approval from other residents but Gil Stevens and several other home owners claim the new rule is illegal and they're suing for exemption. 

Hal Womersley/The Hamlet Home Owner: "I'd never buy in another country club, if there's not mandatory membership now.. There could be, and I'd have to go through this fight all over again."

The conversion to mandatory country club memberships is not unique to the Hamlet, in fact this is an issue at nearly 2-dozen communities in our area. Residents of Boca Lago Country Club also have an attorney looking into their community's plan to impose mandatory club memberships. 

Marilyn Lesters/Opposes Mandatory at Boca Lago: "The buyer has a tremendous bargaining chip, and the seller is caught between the devil and the deep blue sea." 

But despite detractors this trend is red hot and shows no sign of slowing. Proponents say mandatory memberships are necessary for survival to offset the financial hit of dwindling voluntary memberships. 

Richard Fishbein: Boca Lago Assn. Pres.: "You've reported on places like Bink's and the Greens, where they've just became cow pastures. I don't want that outside my door." 

Attorney Larry Glickman is involved in 16 local country club membership conversions. 

Larry Glickman: Attorney: "Clubs that have failed or clubs where memberships have declined to some point of no return are now looking to sell off assets." 

While Glickman sees mandatory country club memberships as the financial salvation for many communities, others, like those calling the shots at Boca Pointe see a middle ground. Selling equity club memberships to people outside the community. As for Gil Stevens, there is no middle-ground in his legal fight with the Hamlet, he vows to battle to the end. 

"And we have the finances to do it." 

Stevens and others involved in the lawsuit want a permanent exemption for them and all future buyers of their homes. Homeowners living in only one other community have been successful with a lawsuit of this type. The bottom line is be sure you understand all of the deed restrictions and potential changes before moving into a new neighborhood. 

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