JerryS5 (Colorado)
Posts: 2
Posts: 2
Posted:
One of our members would like to purchase the vacant adjacent property and combine it with their own to form one larger unit. Is this legal and if so, how is it accomplished?
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Can two properties withing the HOA be combined into one?
Started by JerryS5 • 11 replies • 3878 views
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KellyM3 (North Carolina)
Posts: 2,239
Posts: 2,239
Posted:
From the HOA perspective, would two properties, merged into one, then be charged a single month's dues? Our HOA bylaws say the owner pays per original lot. Thus, combined lot = double dues.
Otherwise, it's probably a city zoning matter that doesn't seem overly complicated.
Of course, this is only an opinion.
Otherwise, it's probably a city zoning matter that doesn't seem overly complicated.
Of course, this is only an opinion.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
Jerry,
This would probably be legal as far as the State is concerned.
How it impacts the HOA will probably be identified within your Articles of Incorporation - under the section that describes the property or number of units.
I would recommend that the Association inform the individual that assessments are based on x number of units/lots. If he decides to purchase the adjacent property he would be responsible for Assessments of both lots (just as if any other owner might own more than one property in a development). Of course as the registered owner of both lots, paying assessments on each lot, they also can case one vote for each lot (i.e. he will control 2 votes).
Tim
This would probably be legal as far as the State is concerned.
How it impacts the HOA will probably be identified within your Articles of Incorporation - under the section that describes the property or number of units.
I would recommend that the Association inform the individual that assessments are based on x number of units/lots. If he decides to purchase the adjacent property he would be responsible for Assessments of both lots (just as if any other owner might own more than one property in a development). Of course as the registered owner of both lots, paying assessments on each lot, they also can case one vote for each lot (i.e. he will control 2 votes).
Tim
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
Jerry is this covered at all in the CC&R's?
Studies show that 5 out of 4 people have problems with fractions
WilliamW2 (Florida)
Posts: 8
Posts: 8
Posted:
Our HOA docs dont allow it, we have people that own up to 4 lots and the pay dues on each one and they also get a vote for each lot when voting at board elections, etc
DeeS1 (Michigan)
Posts: 223
Posts: 223
Posted:
Your Master Deed or CCRs should specifically discuss this. Look under something like "Consolidation of Units" or "
Consolidate Contiguous Units." For a homeowner to do officially make 2 lots 1 in our Community both the Township AND the board must approve. Also, it is specified that all governing documents need to be updated to reflect the change in number of units, site plans redrawn, any change in the percentage of value. These changes should be at the homeowner's expense typically.
There's probably another section in your CCRs that specify how a percentage of value (affects dues and voting rights) can be changed. In my opinion, you would want it doubled for this homeowner so the rest of the homeowners don't have to pay more dues as a result of the consolidation. Of course, this means that homeowner would typically gets 2 votes.
We had this happen when our developer went bankrupt and a homeowner wanted to the adjacent vacant lot.
Consolidate Contiguous Units." For a homeowner to do officially make 2 lots 1 in our Community both the Township AND the board must approve. Also, it is specified that all governing documents need to be updated to reflect the change in number of units, site plans redrawn, any change in the percentage of value. These changes should be at the homeowner's expense typically.
There's probably another section in your CCRs that specify how a percentage of value (affects dues and voting rights) can be changed. In my opinion, you would want it doubled for this homeowner so the rest of the homeowners don't have to pay more dues as a result of the consolidation. Of course, this means that homeowner would typically gets 2 votes.
We had this happen when our developer went bankrupt and a homeowner wanted to the adjacent vacant lot.
DonnaS (Tennessee)
Posts: 5,671
Posts: 5,671
Posted:
I own the adjoining lot to me which is beautiful lawn and trees. I pay full price dues for that, the same as my house lot. This is normal because most documents state that the developement is divided into X amount of lots with each owing an equal amount of expenses and dues, etc.
BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
Tim is right on. Own two lots, get two votes. pay two assessments.
Get them legally combined into one lot, not to be subdivided again, and own one big lot. pay one assessment fee. get one vote.
But, it must be done legal per the state/county/courts, and your HOA by-laws must not disallow it.
Get them legally combined into one lot, not to be subdivided again, and own one big lot. pay one assessment fee. get one vote.
But, it must be done legal per the state/county/courts, and your HOA by-laws must not disallow it.
JohnO6 (Georgia)
Posts: 424
Posts: 424
Posted:
Brian - One minor clarification (correction?) - you're correct that the HOA by-laws shouldn't prevent it, but the CCRs actually may. Since the Declaration in and of itself is part of the property deed, it's possible they could prevent combination and change of legal status. Of course the CCRs themselves could be changed to allow, but the possibility still exists that the properties couldn't legally be combined.
BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
Quote:
Posted By JohnO6 on 01/13/2011 11:55 AM
Brian - One minor clarification (correction?) - you're correct that the HOA by-laws shouldn't prevent it, but the CCRs actually may. Since the Declaration in and of itself is part of the property deed, it's possible they could prevent combination and change of legal status. Of course the CCRs themselves could be changed to allow, but the possibility still exists that the properties couldn't legally be combined.
Brian - One minor clarification (correction?) - you're correct that the HOA by-laws shouldn't prevent it, but the CCRs actually may. Since the Declaration in and of itself is part of the property deed, it's possible they could prevent combination and change of legal status. Of course the CCRs themselves could be changed to allow, but the possibility still exists that the properties couldn't legally be combined.
very true... i kinda used "by laws" when i should have used "By-laws and/or CC&Rs"
PeterD3 (Florida)
Posts: 708
Posts: 708
Posted:
To the O.P...
I would add that it MAY go beyond what the Assn. docs. say.
A S. Fla. example:
This type of change to a P.U.D. (and because there is an HOA in place there is a very good chance you are a Planned Unit Development) in our case requires City approval (let alone county, state, etc.)
Consideration for this type of change/approval [would have] required 6 copies of new plans by a properly licensed engineering firm showing the Plat change(s) to the P.U.D, USPS mail notice to all addresses withing 300 yds. of the assn. property borders, public notice of the requested/proposed change(s)by signage posted at the property border corners AND in the local newspaper, THEN approval by the city bldg. dept, AND THEN approval by the city commission.
No small task. Needless to say we chose to keep the fence the same.
As previoulsy mentioned, this is a Fla. P.U.D. "Your mileage may vary"
I would add that it MAY go beyond what the Assn. docs. say.
A S. Fla. example:
This type of change to a P.U.D. (and because there is an HOA in place there is a very good chance you are a Planned Unit Development) in our case requires City approval (let alone county, state, etc.)
Consideration for this type of change/approval [would have] required 6 copies of new plans by a properly licensed engineering firm showing the Plat change(s) to the P.U.D, USPS mail notice to all addresses withing 300 yds. of the assn. property borders, public notice of the requested/proposed change(s)by signage posted at the property border corners AND in the local newspaper, THEN approval by the city bldg. dept, AND THEN approval by the city commission.
No small task. Needless to say we chose to keep the fence the same.
As previoulsy mentioned, this is a Fla. P.U.D. "Your mileage may vary"
PeterD3 (Florida)
Posts: 708
Posts: 708
Posted:
Whoops! The above post was just to extend the location of a 1200 ft. fence on common area property.
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