Search:  

 
 
   News
newer
story category New Homeowners Handcuffed to ISPs
Cox, Qwest development moves under investigation
(old news - 04:10PM Wednesday Apr 20 2005)
tags: legal · competition · business
We mentioned some time ago how both Cox and Qwest were striking "preferred provider" deals with development builders. This forces new home buyers to pay for service through homeowners association monthly fees, and if they want to change providers, they'd have to sign up for a second connection and pay double. Local Arizona outlet Green Valley News reports that the tactics are being investigated by the Justice Department for violation of anti-trust regulations.

Related:
  1. Debating an ISP Piracy Tax
  2. Bright House Slams Verizon On FiOS Grounding
  3. Comcast Successfully Delays Philly FiOS
  4. Philly FiOS Feud Gets Uglier
  5. USF: Uncle Sam's Blank check
  6. AT&T, Verizon Complete Asset Swap
  7. Qwest Ordered To Restore Services To SkyWi
  8. Verizon's Open Development Initiative? So Far It's A Joke
Forums » New Homeowners Handcuffed to ISPs
view: topics flat text 
Post a:
page: 1 · 2
vic102482
Premium
join:2002-04-30
Upper Marlboro, MD
·Verizon FIOS


edit:
April 20th, @04:13PM

Not right

THat is definatly not right. Especially if someone doesnt even use Inet service they still ahve to pay HOA fees.

And you know what, We are getting FIOS to our entire community, and I have a VERY STRONG suspicion that this will result in the same situation. (I am a huge lover of FIOS, but I will vote against this if it comes to pass).
--
I tie a rope around my penis and jump from a tree, don't you wanna grow up to be just like me!!!!

technick
Premium
join:2000-12-16
Loganville, GA

Re: Not right

It should not be apart of the HOA agreement really, though if someone moves in to a new home and signs the HOA agreement then it is required. It's kind of like the argument about swim / tennis communites. "We never go swimming so why do we pay higher HOA fees?". Well because you agreed to them when you moved in.
--
"Our greatest glory consists not in never falling, but in rising everytime we fall." - Confucius - - - - - - - - - - - Streamfire.net- - AIM - CoNFuCiUsNiCk

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

Re: Not right

Agreed - however, typically items such as pool/tennis courts are for community use, and not individual use. This is similar to mello roos here in So. Cal, where the developer put in their own roads/streets/infrastructure outside of the city, and owners have to foot the bill themselves. This was done out here in Stevenson Ranch a while back with a community owned cable company offering slow internet, limited cable TV, and higher prices. Eventually they were sold off to TimeWarner (a good thing!). I do think as an HOA member, the HOA should be able to rid the provider if they do not provide adequate service and competitive pricing.

djrobx

join:2000-05-31
Valencia, CA
·AT&T U-Verse
·AT&T CallVantage
·Time Warner VOIP
·RoadRunner Cable
·DSL EXTREME

Re: Not right

quote:
Eventually they were sold off to TimeWarner (a good thing!). I do think as an HOA member, the HOA should be able to rid the provider if they do not provide adequate service and competitive pricing.
A friend of mine moved into a new condo complex in Saugus. Even though Time Warner services the general area, he's stuck with SBC TV (a rebadged DirecTV service, minus the high definition channels he wants) and SBC DSL services. Him and some others are trying to motivate the HOA into getting a real cable service, but motivating an HOA is not the easiest thing to do.
--
\\ROB - a part of the SCB local network

guitarzan
Premium
join:2004-05-04
Skytop, PA
·epix

What I dont understand is how can one be forced to take a service they may not want nor want to pay for.? I'm asking honestly as i own my own home as i do not understand what a hoa is can someone explain what a hoa is.? j/k I know what a hoe is. .Is this for gated communities or condos.?Suppose i have a year contract with sat.tv Which is cheaper than cable in most places.I fail to see how one is forced to get a service with a company they may also hate.Thus maybe the reason for the move..i know long stretch of the imagination there.Only to be force to pay for those despised services again?
mglunt

join:2001-09-10
Fredericksburg, VA
·Verizon FIOS
·VoicePulse

Re: Not right

Home Owners Association.

These people own their homes too, but pay fees to keep the community looking nice, to fund a community pool, community tennis courts etc. Often times the HOA has a deal with a trash company at cheaper rates, etc. HOA's also tell people what they can and can't do to the exterior of the house... like paint it purple and pink.

There is a HOA board comprised of the Home Owners in the community as well.

Generally you find these in planned development (a ton of them around here). A Housing company will buy a multi lot piece of ground... put a bunch of houses on it, then sell the houses. (Usually they are sold before being built and the new Homeowner picks options for the house, etc). Around here, unless yuou buy your own house and hire your own contractor, a new house is going to come with an HOA.

In this case, the builder is signing deals with Cox to provide service (probably with a small discount) to all the houses to be paid for with the HOA fees. If you don't want Cox, you still have to pay the HOA fees which cover the Cox payment. So in effect, you are paying for Cox and DTV for example.

a

@utexas.edu

in today's real world, if 1,000.00 per year, give or take, is going to make you or break you than i suggest you lower your housing standards just a little. most people that buy new homes today don't even think about the cost of Internet access, it's not even an issue, besides, they expect it to be included in the monthly payment. the only thing they are pissed about is that a lot of them still have to call for technical support even thou they make high 5 to low 6 figures a year but can't connect by themselves.

gigahurtz
Premium
join:2001-10-20
Palm Coast, FL
·Earthlink Cable Mo..
·VoicePulse
·mybrighthouse

Re: Not right

Congratulations. That was the most unintelligent post i've read this year.

It's not a matter of making or breaking, it's a matter of what's right and what's wrong. As others have mentioned, HOA fees cover things like "yard maintenance, tennis courts, community pool" etc. The fact of the matter is that this person is LOCKED to this internet provider even if they wanted to go with someone else. Internet access should NEVER be apart of HOA fees, period.

What if they locked you into Dish Network & a certain telephone provider. How would you feel about that?

This is absurd and must be stopped, then again it's there choice for moving into this development.
RJ44

join:2001-10-19
Nashville, TN

Re: Not right

said by gigahurtz See Profile:

Internet access should NEVER be apart of HOA fees, period.

For the sake of argument...why not? Developers use it as a selling point, people are aware of it when they buy the property. So why not?

RJ
N3EVL

join:2004-12-13
Shrewsbury, MA

Re: Not right

Sure, let them offer it *as an option* that you can accept or decline (with appropriate reduction in HOA fees) and be free to select your own provider.
RJ44

join:2001-10-19
Nashville, TN

Re: Not right

said by N3EVL See Profile:

Sure, let them offer it *as an option* that you can accept or decline (with appropriate reduction in HOA fees) and be free to select your own provider.
I don't think you understand how exclusive agreements work. The developer and the service provider strike a deal based on total number of units. Those units are guaranteed to the provider, who in turn gives a special rate to the developer based on the number of units. Nobody pays developers for the right to compete against everyone else, they pay for exclusive rights.

The point is that the customer HAS an option. If they don't want internet access and/or whatever else from the exclusive provider, they can buy a home elsewhere. Nobody's forcing them. It's just a marketing tactic. "This home comes with Brand X Internet/Cable/Telephone/Whatever." Take it, or leave it. I don't see the need to claim that it should never be done like that.

RJ
vic102482
Premium
join:2002-04-30
Upper Marlboro, MD
·Verizon FIOS


edit:
April 22nd, @07:43AM

Re: Not right

said by RJ44 See Profile:

The point is that the customer HAS an option. If they don't want internet access and/or whatever else from the exclusive provider, they can buy a home elsewhere. Nobody's forcing them. It's just a marketing tactic. "This home comes with Brand X Internet/Cable/Telephone/Whatever." Take it, or leave it. I don't see the need to claim that it should never be done like that.

RJ
Last time I checked, when you bought a house you owned it, and everything on your property (minus taxes). You should not be forced into a busniess agreement that has nothing to do with the immediate dwelling or appearance of your home.

"This house comes with netflix" take it or leave it lol yeah right.
--
I tie a rope around my penis and jump from a tree, don't you wanna grow up to be just like me!!!!
RJ44

join:2001-10-19
Nashville, TN


edit:
April 22nd, @07:34PM

Re: Not right

said by vic102482 See Profile:

Last time I checked, when you bought a house you owned it, and everything on your property (minus taxes).
And the last time I checked, when you bought a house that came with a Homeowner's Agreement, that was part of the contract you signed when you bought the house. If I don't like a contract, I generally don't sign them. I don't sign them and then go crying about the terms I just agreed to.
vic102482
Premium
join:2002-04-30
Upper Marlboro, MD
·Verizon FIOS


edit:
April 23rd, @12:37AM

Re: Not right

said by RJ44 See Profile:

If I don't like a contract, I generally don't sign them. I don't sign them and then go crying about the terms I just agreed to.
Thats good for you:). Now to deal with whats acutally *on* those contracts as permitted by law for everyone else. The justice department has a bone to pick with them as well, or do they not know anything about contracts either?:p
--
I tie a rope around my penis and jump from a tree, don't you wanna grow up to be just like me!!!!
RJ44

join:2001-10-19
Nashville, TN

Re: Not right

said by vic102482 See Profile:

[The justice department has a bone to pick with them as well, or do they not know anything about contracts either?:p
Oh. Well if the justice department has an opinion that automatically proves they're right. Thank God we have the government there to protect people who aren't smart enough to know what the hell they want by themselves.

I'll try not to get too sarcastic here though. The fact of the matter is it's an AGREEMENT. Some people actually want it, therefore they AGREE to it. If you don't want it, don't AGREE by signing it. Why should the government give a damn?
vic102482
Premium
join:2002-04-30
Upper Marlboro, MD
·Verizon FIOS


edit:
April 23rd, @10:07AM

Re: Not right

said by RJ44 See Profile:

said by vic102482 See Profile:

[The justice department has a bone to pick with them as well, or do they not know anything about contracts either?:p
Oh. Well if the justice department has an opinion that automatically proves they're right. Thank God we have the government there to protect people who aren't smart enough to know what the hell they want by themselves.

I'll try not to get too sarcastic here though. The fact of the matter is it's an AGREEMENT. Some people actually want it, therefore they AGREE to it. If you don't want it, don't AGREE by signing it. Why should the government give a damn?
Same logic for you buddy: "Oh look Micorosoft made them sign a contract so it must be legal and fair".... It is because this AGREEMENT doesnt allow freedom of choice. This aint China homeboy. You should be allowed to choose where you buy your car, where you eat your food, and from whom you get your TV service. Hence investigation of ANTI TRUST in relation to this issue. No one is talking about homeowners here. You keep going back to signing an agreement when you buy the home, Im not talking about that right now. It is not because the Justice Department has an opinion that they are automatically right, it is more about freedom of choice. Because someone does something of their own power doesnt make them right. Because SBC signs a contract to provide FORCED service to a property that they do NOT own or contribute to then they are wrong. NOW comes the next step about signing the agreement between the homeowner and the company, you keep talking about the homeowner, Im talking about the practices of the SBC. FOR THE HOMEOWNER just because someone slaps some terms down on a contract doesnt make it legal. You sign a contract with billy bob authorizing you to steal his wifes car....
.....
You do know federal law and state law overrides any agreements that you can come up with, including companies like Verizon Microsoft and the like right? Anti trust has to do with federal law, so if the government comes back and says it is in violation (which they will because it doesnt allow a user to switch) then what is SBC going to do write up a new contract with the HOA? People often confuse the two. An agreement is exactly that, it doesnt exscuse you from obeying REAL laws and regulations.:)
--
I tie a rope around my penis and jump from a tree, don't you wanna grow up to be just like me!!!!
RJ44

join:2001-10-19
Nashville, TN

Re: Not right

said by vic102482 See Profile:

[Same logic for you buddy: "Oh look Micorosoft made them sign a contract so it must be legal and fair".... It is because this AGREEMENT doesnt allow freedom of choice. This aint China homeboy. You should be allowed to choose where you buy your car, where you eat your food, and from whom you get your TV service.
First off, I'm neither your buddy nor your "homeboy". Obviously we have a difference in philosophy here. Freedom of choice? Please describe for me how the agreements we're talking about restrict my freedom of choice. Are the developers or the service providers pointing a gun at anyone's head forcing them to buy? I have a choice, although it's a concept you seem to not be able to grasp. If I like the deal, I take it. If I don't, I walk.

I'm happy that you want the government making your choices for you. I'm sad that you seem incapable of handling the responsibility yourself. And I'm done with you dancing around the point and refusing to admit that you have a choice, so good luck with the government running your life.

RJ
vic102482
Premium
join:2002-04-30
Upper Marlboro, MD
·Verizon FIOS

Re: Not right

said by RJ44 See Profile:

Please describe for me how the agreements we're talking about restrict my freedom of choice. I'm happy that you want the government making your choices for you.
Yup I think we are about done here.:p
--
I tie a rope around my penis and jump from a tree, don't you wanna grow up to be just like me!!!!
vic102482
Premium
join:2002-04-30
Upper Marlboro, MD
·Verizon FIOS

said by RJ44 See Profile:

said by gigahurtz See Profile:

Internet access should NEVER be apart of HOA fees, period.

For the sake of argument...why not? Developers use it as a selling point, people are aware of it when they buy the property. So why not?

RJ
Whats more messed up is I am getting it NOW, so this may be a NEW fee that I most certainly did NOT have when I originally moved here. Nothing in the covenent about internet access either. Now I personally will welcome FIOS (anyone that is a DSLR member rightfully should:p) but for the sake of everyone elkse, I will just as soon vote it down or stop it if I had the chance.
--
I tie a rope around my penis and jump from a tree, don't you wanna grow up to be just like me!!!!
Kearnstd
Elf Wizard

join:2002-01-22
Mullica Hill, NJ
i know condos have a fee for maintaining the building and the grounds, but i dont see how a neighborhood can have fees unless its one of those gated deals.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
GujuGuy67

join:2003-07-28
Garland, TX

.

How is this any different than these providers striking up deals with cities for the exclusive right to provide cable/dsl service... you can dress up a pig as much as you want, but a pig is still a pig.

move on

woody7
Premium
join:2000-10-13
Torrance, CA
·DSL EXTREME

Re: .

said by GujuGuy67 See Profile:

How is this any different than these providers striking up deals with cities for the exclusive right to provide cable/dsl service... you can dress up a pig as much as you want, but a pig is still a pig.

move on
who says this is right? I'm surprised this is not being investigated..........
--
BlooMe
hadirtyJlo

join:2004-03-31
Elk Grove, CA

good deal

bingo, theres several housing developments in the hampton roads area that are under the preferred provider umbrella, and not just with cox or qwest. im glad to see that someones finally got enough guns to go after them
pooker314

join:2005-04-12
Brush Prairie, WA

check state laws

In many states, developers cannot obligate HOAs to service contracts that last more than a few years beyond turnover of the HOA from the developer to the owners. For example, in Oregon, HOAs can terminate such agreements that go beyond the maximum period of time without penalty. Of course, the HOA would have to take this action (not individual homeowners) but if they were getting screwed badly enough, it shouldn't be difficult to convince enough owners to get the HOA to act (unless they are all employees of the ISP in question).

ficken
don't get any bright ideas
Premium
join:2000-10-07
11111
·RoadRunner Cable
·Vonage
·CableOne

Sorta in the same boat

I moved into a new development last August and I am basically chained to Comcast for TV and internet. I am not allowed to have a dish, and when I asked why they said the owner had made a deal with comcast for them to come in and wire the place up and they would then be the exclusive provider for the area and they would not allow dish to be installed. And as for DSL, SBC won't hook up this area with an RT that can handle DSL, and I highly doubt they will anytime soon either.
--
Health is merely the slowest possible rate at which one can die, and the world death rate holds at a steady 100.00%
Ga Dawg

join:2003-09-11
Marietta, GA

Re: Sorta in the same boat

said by ficken See Profile:

I moved into a new development last August and I am basically chained to Comcast for TV and internet. I am not allowed to have a dish, and when I asked why they said the owner had made a deal with comcast for them to come in and wire the place up and they would then be the exclusive provider for the area and they would not allow dish to be installed. And as for DSL, SBC won't hook up this area with an RT that can handle DSL, and I highly doubt they will anytime soon either.
No HOA has the authority to deny you a dish.
»www.fcc.gov/mb/facts/otard.html

amaiman
Abort, Retry, Fail?
Premium
join:2003-12-12
Trenton, NJ
clubs:

Re: Sorta in the same boat

Interesting. I didn't know that rule existed (that disallows landlords from prohibiting satellite dishes under certain conditions).

Too bad my balcony faces the wrong way.
markopoleo

join:2003-04-02
Bonne Terre, MO
·Charter Pipeline

Re: Sorta in the same boat

Actually a Landlord can prohibit a dish for whatever reason. Own apartments only way i let them have a dish if its not on building (pole) and does not get in way of general use around building.

If a landlord tells you no to putting dish on building/porch you better listen, they can file criminal charges if its mounted to building for damage. Lucky most people are reasonable and when a landlord says no they don't do it, but does not stop some people.

roamer1
sticking it out at you

join:2001-03-24
Atlanta, GA
clubs:
·VoicePulse Connect
·Teliax VOIP
·Speed Factory

Re: Sorta in the same boat

A landlord can prohibit installing a dish in a manner that causes damage to the building (holes in walls, etc.), but cannot prohibit mere use of a dish if the dish is in an area where the tenant has "exclusive use and control", like a patio or balcony. It sounds to me that what you require is perfectly consistent with FCC regs, and may even go beyond the FCC regs a bit.

HOAs in fee-simple townhome communities (like the one I live in) and single-family developments have even less of a say when it comes to dishes; they can require that dishes be mounted out of sight IF it won't impede reception, but that's about it.

-SC
--
"it seems like all you ever buy is Abercrombie and cell phones" --a friend
robbin
Premium,MVM
join:2000-09-21
Leander, TX

said by markopoleo See Profile:

Actually a Landlord can prohibit a dish for whatever reason. Own apartments only way i let them have a dish if its not on building (pole) and does not get in way of general use around building.

If a landlord tells you no to putting dish on building/porch you better listen, they can file criminal charges if its mounted to building for damage. Lucky most people are reasonable and when a landlord says no they don't do it, but does not stop some people.
As a landlord myself, I would advise you to read the federal OTARD rules. This is one of the exact scenarios which it was written for. The tenant has rights also. If the tenant has a private porch / balcony they are free to do with it as they like. The dish is allowed unless it overhangs outside of the railing!

WhyADuck
Premium
join:2003-03-05

Congratulations, you have just proved that you have no idea what you're talking about. The FCC has specific regulations that pre-empt (take precedence over) even state and local laws, let alone a landlord's rules, and as others have pointed out, tenants do have rights to erect satellite dishes even if the landlord is adamantly opposed to the idea. There are certain conditions and since I don't have the law in front of me I won't presume to say what they are, but if you have a balcony with an open view to the south you are golden.

However, commenting on the original topic under discussion, I must say that I have no idea why anyone would move into these types of planned developments in the first place. To me those developments are about two levels removed from being in a prison camp (that you have to pay dearly to be in, no less). It makes about as much sense to buy into one of those developments as to go out and ask to be raped, IMHO, because you are basically giving away the freedom to do with your property the things that most homeowners take for granted. But, to each his own, I guess (although I really feel sorry for your family if you move them into one of those encampments).

zoom314
Superman
Premium
join:2001-04-30
Yermo, CA

said by Ga Dawg See Profile:

said by ficken See Profile:

I moved into a new development last August and I am basically chained to Comcast for TV and internet. I am not allowed to have a dish, and when I asked why they said the owner had made a deal with comcast for them to come in and wire the place up and they would then be the exclusive provider for the area and they would not allow dish to be installed. And as for DSL, SBC won't hook up this area with an RT that can handle DSL, and I highly doubt they will anytime soon either.
No HOA has the authority to deny you a dish.
»www.fcc.gov/mb/facts/otard.html
I agree, As the former President of a small HOA(12 units) in San Gabriel CA, FCC rules and Federal Law trumps HOA on this within reason, A dish can be mounted on a post, non-common wall or Balcony that faces the southern sky. Although some years ago some would say It will hurt the value of our units, It was largely a lot of Bull.... put out by a few owners, In My case It was a stupid Treasurer who controlled the place like Her own personal Kingdom(She owned and rented 2 units and lived off site and thought She could do anything that She wanted), All I was there for was as an English speaking figurehead and I moved out with My mother after 2 years and Yeah I made $20,000.00 on that 2 story condo. If I'd been well off then I would have put Dish Network in and hired an FCC regulation proficient Lawyer as She was too big for Her Asian britches and needed Her wrists slapped. And yeah I still know where the place is too, Not that I'd live there, As It's right next to a concrete lined creek. Although I could one day If I wanted to, I just can't climb stairs as well as I used to.
--
Firefox forever!
»zoom314.blogspot.com/
»mysite.verizon.net/zoom314/
firestalker

join:2000-09-21
Canton, MI
Heck, I know how you feel. I bought a condo and I am stuck with comcast for internet, tv, and even phones. Heck they didn't even run copper in this whole complex so you can't get a copper phone line if you wanted.

Unregistered user

@cofs.net
As the other poster told you, this is definitely illegal. Contact the FCC immediately. They ought to be able to give the developer an attitude adjustment.

1-888-CALL-FCC (1-888-225-5322)

Fatal Vector

@sfldmi.ameritech


Umm...I think, if you look into it, you'll find that there is a federal preemption (via the FCC-WWW.FCC.gov) as far as contracts restricting satellite dishes that applies to HOA's, landlords, management companies etc. It is not legal for them to ban satellite dishes, especially in cases where your only other choice is a monopoly provider. This kind of thing with apartment managers is why this preemption came about.

basket case
Premium
join:2005-02-28
right here?

?

shows just what kind of company they really are to be resorting to such lowball and quite reasonably illeagle buisness practices. must not be worth a crap if they have to stoop to that leval just to drum up future buisness. I HATE CORPORATE GREED!

X_Digit
Binary Enhanced
Premium
join:2003-06-12
Mansfield, TX

Re: ?

said by basket case See Profile:

I HATE CORPORATE GREED!
Welcome to the good 'ol USA!
--
Respectfully, X_Digit
gpancner

join:2001-09-27
Nine Mile Falls, WA

Re: ?

Fight the trend of the really oppressed- MOVE OUT!!
bogey780

join:2004-03-19
Covington, LA

Several locations I know of...

A local apartment owner made a deal where his apartments use exclusively Cox Cable. You simply can't have Bellsouth or any other local provider even though facilities are in place.

See 6 replies to this post

needforspeed59
Cruise Ship Just Passing Through

join:2001-05-02
Glendale, AZ

It's a Two Way Street

Seems like this is not something the phone or cable co's are forcing on the developers. It sounds like a two way negotiated deal.
--
Of all the people I know... you're one of them.

bokamba
Chengdu Rocks
Premium
join:2002-04-05
Falls Church, VA

Which Justice Department?

Is the article in that local paper speaking of the Arizona state justice department or the United States Department of Justice?

Tsume
My little Toby.

join:2004-02-23
Winter Park, FL
·ViaTalk
·Comcast
·Cox HSI

LAME.

I'd be more pissed with Qworst than with COX, but this is still pretty illegal.

IMHO the whole HOA fee thing should be banned. You're forced to sign it, since pretty much everywhere has one. It's like stealing your money... what if you never use the pool? Baseball field? Park? Why the hell should YOU pay for it...

"Because you signed it" is a stupid reason. They pretty much forced you into signing it.

See 10 replies to this post
Xelha

join:2004-02-10
Venice, FL

handcuffed

Here in Florida a lot of gated communities have agreements with the cable co. We pay a reduced rate for service. But here digital and internet are billed directly to the consumer.

Dagda1175

join:2001-06-17
Goleta, CA

Illegal?

Doubtful. Crappy, yes. No one should be caught surprised by this though. Well....ok its scary how often people sign something without reading it first! If you dont like it, dont move there!

OceanaJones

join:2004-10-18
Suffolk, VA

Your choice

People who buy into these communes where your property and constitutional rights are severely limited or controlled by others deserve what they signed up for. Personally, if I was spending my hard earned money on a place to live, I would thumb my nose the first time a HOA agreement was thrust into my face. But then, some people... seems like a lot... don't have a problem being controlled this way. The
big corporations (cable companies) don't like dealing with individual customers so this works out great for them.
averagedude

join:2002-01-30
Mesa, AZ

Re: Your choice

Out here in the West (CA and AZ).
It "seems" here that every community has a HOA.
Its not like we have a choice.

WhyADuck
Premium
join:2003-03-05

Re: Your choice

Aren't there any homes that predate these things for sale anywhere? Can you buy a vacant piece of property that's not in a HOA and develop it yourself?

Here's a suggestion for people who value freedom more than aesthetics (though I'm not suggesting you have to live in a run-down shack or anything). Find a piece of property that is in an older area, that's not part of a planned development - go visit nearby township halls and talk to township officials to find such areas, and be sure to ask what the minimum lot size is for building, so you don't make the mistake of buying something too small. Then when you find a lot (accept that it may be a little ways out of town), go see a builder that specializes in modular homes (note I am NOT talking about mobile homes, that is something completely different. Modular homes are built in a factory and transported to the building site in sections, and are usually set into place using a crane). In all probably you will be surprised for the amount of home you can get for your money, and if the builder has been in business very long he will be able to get all the necessary site preparation taken care of (getting utilities installed, etc.). In many areas, the day you move in it will be worth $10K or $20K more (maybe much more, depending on the neighborhood) than what you paid for it. One caveat - always get references from the builder (previous customers) and always talk to them and ask them what they liked about their home and what they would do differently if they had it to do over. If a builder won't give any references then run, don't walk. I cannot emphasize that enough - never deal with a builder that refuses to give any references!

Try to see the builder before you pay for the lot, the builder can alert you to any potential problems. One of the best ways to find building lots is to go look in an area that's been around for a while but still has a lot of unoccupied land, and look for "for sale" signs on the property (also the township officials may be helpful in this regard, sometimes they know of lots for sale that aren't advertised). Be sure you get a warranty deed, and/or invest in title insurance, because you won't be able to get a bank loan for your home if there is any question whether you got clear title to the land (again, the builder can often help with this process - and when I say help I mean they can point you to the proper professionals, such as the title insurance company).

One thing you should be careful about is if the builder is selling lots himself. Try to find one that is NOT running a real estate business on the side, otherwise he will try and steer you to his lots and you will never be able to trust any negative opinion he gives you on any lot, since there will always be the question of whether he's trying to get you to buy one of his. You will not be amused if his "great deal" turns out to be in a flood plain, or next door to a former toxic waste site or something like that, and builders who don't sell land (and aren't in cahoots with anyone who does) tend to be more honest about things like that.

Obviously I haven't lived everywhere in the U.S. so there may be places where the above advice won't work for some reason - I know it will work in many parts of the midwest but can't say how different things are in your neck of the woods. But I think for many people it's just a matter of opening their minds to other possibilities, and especially not listening to real estate agents who have a vested interest in selling you an already-built home, and the most expensive one they think you can afford at that. Of course, I know there are some people who think it is a good thing to live in one of those horrible planned developments (and still I do not understand why), but seriously I'd rather be taken out and shot than to be forced to live in one of those (the developers would have to pay ME to get me to live in one, and I'm talking big bucks!).

Maybe others will have additional hints, perhaps some specific to your region, but I just wanted to try to expand your thinking a bit. You ALWAYS have choices, you just don't know what all of them are.

GlobalMind
Domino Dude, POWER Systems Guy
Premium
join:2001-10-29
Hollywood, FL

Re: Your choice

said by WhyADuck See Profile:

Aren't there any homes that predate these things for sale anywhere? Can you buy a vacant piece of property that's not in a HOA and develop it yourself?
Depends on where you are. There isn't exactly lots of free open property here in South Florida.

To OceanaJones statement that our "constitutional rights are severely limited" -- this is overstating a bit in my view. This isn't a general statement you can make about every HOA. If done correctly, the HOA works to both provide services and maintain the property value of the area through the use of aesthetic standards but is largely RESIDENT controlled. This is not some outside entity making the decisions.

Trust me - everyone around me are very much free thinkers - who don't take any crap. You should see our board meetings.

The value of my home went up $30k in 6 months - and if the folks next door could have a 78 Olds on blocks in the street...I doubt this would be the case. : )

K.
--
TheGlobalMind.com
Forget regret, or life is yours to miss - Rent

ctceo
Premium
join:2001-04-26
South Bend, IN
clubs:

Apartments

Kinda reminds me of the Apartment complexes around here that are "Contractually obligated to provide exclusive Comcast service" that wont allow DBS as their "House Rules" Prohibit. Or my Apartment complex that only allows persons on the south sides of a building to have DBS Satellites, but wont allow Comcast to install in all but one of the buildings. Also along the lines of the "Firearms are prohibited" rule in the Lease agreement, even if said firearm is a tool of your trade. You'd be surprised what these complexes get away with because you are small and they are big.
--
ASUS SK8N nForce3 - 8GB PC2700 - AXP 64 3400+ - nVidia 6800 Ultra w/512mb - CL Audigy 2 PP - WD SATA150 36GB + Hitachi GST 250GB - Plextor PX708A + Sony CRX300A - Dual 600 Watt PSU's.

PixelFreak
Innocent Until Proven Guilty

join:2001-02-21
Bremerton, WA

Re: Apartments

said by ctceo See Profile:

You'd be surprised what these complexes get away with because you are small and they are big.
Actually, you could say that, or you could also see my post above where I explain the difference in rights between a leaseholder and an owner.

Lease = leasehold interest (inferior to ownership interest), don't own building, therefore not liable for costs incurred in upkeep, property taxes, loss of building, etc. (now, you are paying for some of that through built in pricing, but you are not responsible for the building as an owner - and can even sue your landlord for certain breaches in contract).

Owner = ownership interest (you can even lease it out), responsible for EVERYTHING that happens, costs, etc. Higher interest, higher responsibility, therefore less restrictions on your rights. (Government control through zoning ordinances and in certain cases, enforceable HOA covenants that burden title to the land.)

As a renter, your have a subservient right to only occupy the building and hold your landlord accountable for ensuring certain living conditions are not interrupted (leaks, safe stairs, etc.) As an owner, you have a higher responsibility (you answer for all lawsuits on your property whether you live there or not), pay property taxes directly, and can use the land any way you wish (within reason and zoning restrictions - again, government control, not private business control).

Hope this helps you understand why apartment LEASES can have these overbearing terms included and enforced - you are not the owner, you are agreeing to abide by rules to live in someone else's building. You give up equity (your rent does not give you any ownership interest over time) for less responsibility and accountability (within the leasehold agreement).

PixelFreak

ctceo
Premium
join:2001-04-26
South Bend, IN
clubs:

Re: Apartments

I don't disagree with your definitions. However the homeowners association is not the authority when it comes to federal law. I don't care what you sign or what they say. YOU CANNOT WAIVE CERTAIN RIGHTS one of which is the ability to pick up signals via DBS or other method.
--
ASUS SK8N nForce3 - 8GB PC2700 - AXP 64 3400+ - nVidia 6800 Ultra w/512mb - CL Audigy 2 PP - WD SATA150 36GB + Hitachi GST 250GB - Plextor PX708A + Sony CRX300A - Dual 600 Watt PSU's.