Top HOA Scams To Avoid

In a perfect world, all members of homeowner associations would act ethically, but that does not always occur. Sometimes, corrupt members take advantage of others by taking part in scams that can result in fraud. 

If you are a member of an HOA, and this is something that concerns you, it can be helpful to know what to look out for. Check out these top HOA scams to avoid. If you suspect members of your HOA doing any of these activities, you should report it immediately. 

Corporate Law Violations

Lying about finances, stealing or destroying records all fall under violations of corporate law. As nonprofits in the eyes of the governments, HOAs must follow state laws. 

Embezzlement

Another type of HOA scam is embezzlement. As another type of fraud involves taking property that members have trusted HOA for purposes and using it for personal benefit. 

Election Rigging

Lastly, election rigging occurs if HOA members group together to unfairly vote for people they want to run the HOA. Although this is technically possible, it is usually rare. 


While many HOAs have honest and efficient leadership, some do not. If you have seen signs of any of these scams around your HOA, it is important to speak up. No one deserves to be a victim of fraud