Can a Property Owner Withdraw From a Property Owners Association?

A property owners association (POA) governs a group of residential or commercial buildings in a specific area, such as a neighborhood, historic district, town, or even an entire city. 

More About POAs

Many people confuse what a property owners association is with how homeowners associations (HOAs) operate. While they may be similar in that they both provide upkeep and help maintain property values, there are important distinctions between them.

A POA takes its responsibilities a step further and can include services, committees, and programs that benefit the community as a whole. A POA could encompass one neighborhood, town, or even several regional towns. It can also focus only on a specific site, such as a geographic boundary, a historic district, or a large sports club or golf course.

POA boards–which are elected by voting for associations with tools such as those offered by ElectionBuddy–can hold meetings to decide on specific community issues that align with their original mission. Because changes made within a POA affect a broader collection of people and areas, it’s typically more challenging to introduce than in other owner organizations. 

Because POAs govern both residential and commercial properties, their membership is not only limited to homeowners. Property managers, business owners, developers, and investors in the designated area can join the POA. 

What Does a POA Do?

A POA focuses primarily on community-centric matters such as events, clubs, business licenses, shared parks, and other local organizations. 

Multiple HOAs can become a part of a single POA, which oversees the neighborhood or community organization when it comes to development and other issues. In short, a POA can help an entire town or community maintain a sense of consistency and ensure important communal matters are addressed.

Is POA Membership Mandatory? 

Depending on where you own a property, POA membership may or may not be mandatory. Whether you volunteer or are required to get involved, you will have to pay annual dues. 

Can You Withdraw From a POA?

If you find the covenants of a POA too restrictive and want to opt out, you may wish to withdraw entirely. The ability to withdraw will depend on the area and the governing POA. If membership is mandatory, you most likely will not be able to withdraw. 

To determine whether the POA in your area is mandatory or voluntary, refer to its bylaws. These are the best source of information about membership, fees, and how board and membership meetings are to be conducted.

How to Withdraw From a POA

Because membership is often required, leaving the association can be difficult. That said, there may be some ways you can attempt to leave, even if it is a mandatory-membership POA, such as: 

• Sell the property: If a POA is becoming an unpleasant part of your life, you may sell the property and leave the POA after the sale is completed. However, you will likely have to pay any outstanding dues you owe to the POA before closing the deal. 

• Petitioning: In some cases, you can petition the POA to have your property removed. You may also be able to stage a legal challenge through the court system. This could be a long, expensive, and eventually unfruitful venture.

• Refuse to join: If the POA was formed after you already purchased the property, you could refuse to join it. Refer to the paperwork to see if you inadvertently agreed to join any future POAs. If not, you may be able to resist the pressure to join. 

• Organize to dissolve the POA: Check the bylaws of the POA to see how many members you would need to support the dissolution of the POA. You can campaign among your neighbors to gather enough votes. 

• Wait for the membership to end: If you know that your membership will end soon, you might want to wait it out. Some POA memberships have renewals, allowing you to opt out at the next renewal date. 

Final Thoughts

When you are purchasing a property that belongs to a POA, do your due diligence and thoroughly read all of the bylaws and covenants that pertain to the site. It is in these documents that you will find out if property owners associations have to report to the state and what your obligations will be to the POA. 

Knowing what you are getting into may save you from being surprised and frustrated by restrictions that make you wish you could withdraw from the POA.