Ignoring the fine print can be profitable — until it leads to catastrophic mistakes.

When one Indiana real estate developer decided to willfully ignore HOA rules, their risky gamble ended with an expensive lawsuit and a court-ordered demolition.

Keep reading for the full story.

Condo developer ignored HOA rules, judge orders demolition of $2.2 million duplex. Developer will likely have to relocate the buyers he sold to.

In 2021, the WatersEdge HOA in Fishers, Indiana established a rule saying houses had to be 20 feet apart.

In 2023, MHM Investment Group decided to build a duplex on a lot they owned, but wanted it bigger than allowed, so they just built a duplex and sold both units.

Soon the HOA made a world of trouble for them.

The HOA noticed, and a court battle ensued.

The developer argued that HOA rules didn’t apply because they were entitled to build the largest building the city was OK with.

They knew the HOA rules and agreed to them when buying the property, but shrinking the two units by 300 sq ft each would generate a lower sales price, so they tried the “hope nobody notices and ask forgiveness if caught” route.

This approach didn’t work out so well.

The developer was caught as soon as the foundation was poured in 2023.

The HOA told him to stop, the developer filed a lawsuit, and continued building anyway.

On Nov. 24, the judge ordered the builder to pay around $75,000 in fees and demolish the $2.2 million waterfront property.

His strategy of ignoring the HOA and suing them to get his way got him a master’s degree in FOlogy.

Normally, I am against HOAs, but I dislike rich, arrogant developers more.

He knew the rules, but felt entitled to bigger profits and ignored them anyway.

When you prioritize profits over following the rules, trouble is sure to follow.

Commenters weigh in with their thoughts.

This user can hardly believe they’re actually siding with an HOA for once.

This was quite an expensive mistake to make.

This commenter still sides with the developer.

It seems the only thing worse than an HOA is a shady developer.

In the end, the developer didn’t just lose a lawsuit — they lost the whole house.

That’s what you get when you prioritize profits over common sense.

If you liked that post, check this one about a guy who got revenge on his condo by making his own Christmas light rules.