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Prelitigation Mediation of Condominium and Homeowners Association Disputes

posted Feb 20, 2014, 9:53 AM by Domain Admin July 1, 2013 a new law went into effect. It provides for a completely voluntary process by which HOAs and homeowners can agree to mediate legal disputes. The bill is codified in new statute 7A-38.3F. Chapter 7A is the chapter of our laws dealing with judicial matters – so be aware that while this is an HOA law, it is found in Chapter 7A and not in Chapter 47F (the Planned Community Act) or 47C (the Condominium Act).

The bill provides that HOAs and homeowners can agree to mediate a dispute, although neither is required to and either can decline to do so. If they do agree to do so, then the mediation is handled in the same way as any other mediation, which can result in a legally-binding settlement – again, if both parties agree.

The new law does not apply to disputes regarding payment of assessments, so those now cannot be mediated even though they could have been before.
Domain Admin,
Feb 20, 2014, 9:53 AM