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BonnieG1 (Nebraska)
Posts: 1,186
Posted:
I live in a 43 unit condominium with no more than 33 parking spaces and I think there are only 31 spaces. THe spaces were assigned to the unit when the condominium was built. The association began in 1981. Through the years people have "sold" some of the parking spaces. After readimg "New Neighborhoods" I have come to the realization that these spaces actually cannot be separated from the units they were assigned to. My unit was assigned a space that apparently was sold some years before I bought my unit. I have no plans to go after a unit, I don't want to disturb the older (80s and 90s) people who live here. But some owners have and may still be going after the space originally assigned to their unit.
I don't feel the Board should get involved, because all 4 people on the Board either could go after a unit or have a unit that someone could go after and I feel it would be a major conflict of interest for the Board to becomce involved. I am the secretary. What are your thoughts on this? Thank you

TimB4 (Tennessee)
Posts: 21,059
Posted:
Bonnie,

I am going to expect the following things:

1) The parking spaces are considered common area and not deeded to each unit
2) The Association "assigned" exclusive use of 1 space to each unit

Questions:

1) are my expectations correct?
2) When you say "sold" who sold (unit owners, association, ??)?
3) What was sold? (the right to use the space or the physical space)
4) How is/was the sale documented?

Tim
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Tim,
They were not deeded to a unit.
There was not one space assigned to each unit because there are more units than there are parking spacings.
If I remember correctly our Master Deed states the spaces like the storage area in the basement cannot be severed from the unit.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
THe owners sold them as far as I know. The physical space was sold. I don't think there was much documentaiton at all. Oour former management has some information.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Let me clarify why I ask the questions:

If the spaces are owned by the Association, then only the Association would have the right to sell the space, which would have to be recorded with the county.

If the spaces are owned by the individual lot owner, there needs to be a deed and the lot that "owns" the space would be responsible for it's maintenance.

If the owner was assigned exclusive use of the space by the association, the right to use that space could be granted to others by the person who has the exclusive use. However, the exact wording of the documents agreeing to the "sale" would have to be seen to see if it was legal.

If the Association governing documents specify a certain parking space to a certain unit, then unless the sale of that exclusive right was properly disclosed (perhaps recorded with the county) one could argue that the space someone bought the rights too expired when the property was sold and a new agreement would have to be entered into. Again seeing the specific language of the transfer of the right along with the disclosures made when the property was purchased would be required to provide any good opinion.

Personally, I believe that the "selling" of spaces should have never been allowed to happen. I'm not sure it would be legal for unit owners to have the right to transfer usage rights of "common area" to others and have that transfer binding on a new owner unless the governing documents specifically say so as most common property is jointly owned and each owner is entitled it's use by the CC&Rs. Again, the need to read the actual documents is required to be sure.

You may need to spend some money for an opinion from the Association lawyer. Be sure to provide a copy of someones actual "sale" documentation along with the resolution or amendment that assigned the spaces. It's highly possible that the Association is going to have to issue a policy and declare the "sales" null and void and that anyone who feels they were wronged to seek legal action against the person who sold the rights.

You are correct that it needs to be looked into. Your lawyer can advise you better if the Association should be involved or not.

Tim
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By BonnieG1 on 03/10/2011 7:27 PM
Tim,
They were not deeded to a unit.
There was not one space assigned to each unit because there are more units than there are parking spacings.
If I remember correctly our Master Deed states the spaces like the storage area in the basement cannot be severed from the unit.

This statement alone tells me that the "sales" could be invalid. As I said, seek advise from your attorney.

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
If our Attorney did advise us to declare all sales null and void, three of the four of the board members would get a parking spot and one board member would lose a spot. I don't think this would go over well at all with the members. But I do think that is the only way the problem may be solved. I just wish that it would not so favorably affect the members of the Board. There aren't many people here willing to serve on the board. Many are over 80 years old and some have already served on the board. So getting new Board members would not be an option. (I didn't even want to serve on the Board, but the situation was getting so desperate we may have had to go into receivership)
TimB4 (Tennessee)
Posts: 21,059
Posted:
Bonnie,

I'm not saying that the individuals couldn't "rent" those spots to another owner but that use would only last until the unit was sold. If the current board members "sold/rented" their spot to someone else then those agreements would probably still be in force.

What the Board needs to remember is that they have a duty to protect the Association from issues (like this one may have created).
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By BonnieG1 on 03/10/2011 7:27 PM

If I remember correctly our Master Deed states the spaces like the storage area in the basement cannot be severed from the unit.

The answer is in the CC&R's someplace and I'm afraid you need to dig them out and read them.

Studies show that 5 out of 4 people have problems with fractions
AnnD2 (Connecticut)
Posts: 76
Posted:
I have a similar situation, although in my case no one has "sold" their space. That would not be permitted, since the assignment of our spaces is documented in our bylaws which are filed with the land documents. To change the assignment of our spaces, would require a change in the bylaws which would require a vote from the entire community and a refiling of our new papers. We also have a few garages that are part of the deeds for those unit to which they are assigned.

As others have said, it all depends on how the parking places were first set up and assigned....
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Tim, spaces are currently rented. I am currently renting from an owner who has sold the unit and I need to be out of the space by March 14, 2011. The problem with this is the space is that it was not originally assigned to the unit that "owns" it now.
I do plan on getting out the documents as I am almost certain the spaces should not have been sold. I also need to show our President some of the previous Board meeting notes unrelated to this issue, but I will probably do all at the same time.
Thanks for your help
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Ann,
You have given me an excellent idea. I don't think we will have a lot of trouble amending out documents to chage assignemnt of spaces. Of course we have to get the approval of 2/3 of the first mortgagees to do this. Our owners may be willing to do this, but I don't know about the banks.

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