Homeowners associations are tasked with upholding the community’s governing documents to preserve property values, maintain aesthetics, and promote community harmony. But what happens when an association waits too long to enforce a restriction? In those situations, a homeowner may raise a defense that could protect the homeowner from being obligated to bring the property into compliance known as laches.
Understanding Laches
Laches is an equitable defense, meaning it is based on fairness rather than strict statutory rules. In simple terms, laches prevents a party (like an HOA) from enforcing a right when it has unreasonably delayed taking action, and that delay has unfairly prejudiced the homeowner.
For example, if an HOA is aware that an owner has installed an unapproved improvement but does not act for several years, and the owner has invested significant time and money into maintaining or expanding that improvement, the HOA may be barred from suddenly demanding removal.
Elements of a Laches Defense
To successfully assert laches, a homeowner generally must prove:
- Unreasonable Delay – The HOA knew (or should have known) about the violation but failed to act in a timely manner.
- Prejudice – The homeowner relied on the HOA’s inaction to their detriment. This could include spending money on improvements, losing the opportunity to remedy the issue cheaply, or experiencing other hardships that make delayed enforcement unfair.
The mere passage of time is not enough; the delay must be unreasonable and cause prejudice.
How Laches Differs from Statutes of Limitations
Unlike a statute of limitations—which sets a firm deadline for filing a lawsuit—laches is flexible. It depends on the facts of each case and the balance of fairness between the association and the homeowner. Even if an enforcement claim is technically within the statute of limitations, laches may still prevent enforcement if the delay is inequitable.
Implications for Homeowners Associations
- Prompt Enforcement is Key: Boards should consistently and timely enforce the governing documents once violations are discovered.
- Document Investigations: Maintaining records of violation notices, board deliberations, and enforcement steps helps demonstrate that the HOA acted reasonably and diligently.
- Evaluate Prejudice: If a violation has existed for years, the board should carefully weigh whether enforcement is practical or whether it risks a laches defense in court.
The laches defense serves as a reminder that inaction can have consequences. For HOAs, timely enforcement is not just good practice, it is essential to preserving the association’s legal rights. By acting promptly, consistently, and fairly, boards can protect the community while avoiding defenses that may undermine enforcement efforts.
If you have any questions regarding these materials, please reach out to the firm for assistance. Call us toll free at (800) 743-9324 or email moc.walbdhc@ofni.
The information contained in this article is not intended to be legal advice and is provided for educational purposes only.