DISSOLVING / WHAT HAPPENS?

Pau, I'm not an attorney but this is the part you're looking for: The personal obligation for delinquent assessments shall not pass to his successors in title, unless expressly assumed by them by written agreement.

If I'm selling a home the buyer expressly has to agree in writing to assume the debt. Now even in a foreclosure the owner is still responsible for the outstanding fees; if you can find them and if they have any assets and if the HOA is willing to pursue it.

As to dissolving, somewhere in the CC&R's should be a section on how to dissolve and what must be done. Usually it will require a vote of a certain percentage of homeowners and getting someone (city or county) to assume responsibility of the common areas and things like plowing.

If all of this is not properly done then the HOA still exists and can be reactivated by one homeowner going to court and asking the judge to appoint a receiver to takeover the day to day operation of the HOA. Very expensive as you will also be paying the receivers salary. The receiver will remain in charge until the homeowners can prove they are willing and capable of taking over.

That's the good news - now for the bad if the HOA improperly dissolves or drops the insurance on the common areas and if anyone would be hurt or killed on the CA (drowned in a HOA retention pond for example) any and all of the homeowners could be sued jointly or severally.

From: http://legal-dictionary.thefreedictionary.com/Jointly+and+severally+liable

joint and several liability

A designation of liability by which members of a group are either individually or mutually responsible to a party in whose favor a judgment has been awarded.

Joint and several liability is a form of liability that is used in civil cases where two or more people are found liable for damages. The winning plaintiff in such a case may collect the entire judgment from any one of the parties, or from any and all of the parties in various amounts until the judgment is paid in full. In other words, if any of the defendants do not have enough money or assets to pay an equal share of the award, the other defendants must make up the difference.

Defendants in a civil suit can be held jointly and severally liable only if their concurrent acts brought about the harm to the plaintiff. The acts of the defendants do not have to be simultaneous: they must simply contribute to the same event. For example, assume that an electrician negligently installs an electrical line. Years later, another electrician inspects the line and approves it. When the plaintiff is subsequently injured by a short circuit in the line, the plaintiff may sue both electricians and hold them jointly and severally liable.

Joint and several liability can also arise where a Husband and Wife or members of an organization owe the government income taxes. In such cases, the revenue agency may collect on the debt from any and all of the debtors. In a contractual situation, where two or more persons are responsible for the same performance and default on their obligations, a nondefaulting party may hold any and all parties liable for damages resulting from the breach of performance.

A small number of states do not strictly follow the doctrine of joint and several liability. In such jurisdictions, called comparative Negligence jurisdictions, liability is prorated according to the percentage of the total damages attributable to each defendant's conduct.

Subordination of the Lien to Taxes and First Mortgage:
The lien of the assessments provided for herein shall be subordinate to the lien for taxes imposed by any lawful authority and for the lien of any first mortgage. Sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of assessments as to payments which become due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.

IMHO it means:
tax and mortgage liens are above any assessment liens.

assessment liens are wiped out at the sale or transfer for any lot that is in mortgage foreclosure status.

after the sale or transfer is made, it does not wipe out any future assessments and/or liens against the lot.

PauG,

The CCR articles you posted have the following meaning:

1) Creation of the assessment lien means that by acceptance of a deed (meaning purchasing your property)a lien is automatically created against any owner who becomes delinquent in paying assessments. If you sell your property, any delinquencies you owe are not passed on to the purchaser unless the contract to purchase states that they are obligated to pay any delinquencies.

2) Subordination of the lien means that the assn's lien comes after any tax liens or first mortgages. That means any tax liens and first mortgages will be paid off first and if there is any $$$ left over then the assn's lien will be paid.