His oral (that's the better term than verbal) agreement with his family member is irrelevant to the HOA or the bank; it has no bearing in his legal obligation to pay fees, mortgage, taxes, etc. Similarly, it is irrelevant whether he lives in the home or not--people cannot escape their obligations for real estate simply by moving out. So yes, he is still legaly ties to the property. It is possible he can sue his family member for violating her agreement, but that does not affect his own obligations.