Does my HOA have the right to tell us how to pay for something?

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Does my HOA have the right to tell us how to pay for something?

We are putting new driveways in and the HOA said that we had to pay in

check, not cash or credit card. I called the driveway company and they said they

would take a credit card with a 3% charge. The HOA says no.

Asked on September 22, 2018 under Real Estate Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The HOA can only tell you this if the governing documents (e.g. HOA rules or bylaws, etc.) specify this, OR if the driveway company is actually owned/controlled by the HOA (not merely approved or recommended by them), since  business owner can legally say cash only. Otherwise, though, without power conferred on them to do this by governing documents or without owning/controlling the contractor, they have no authority to tell you this.


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