Help Please: HOA being established but no one in the development?

Hello,

I'm new to the board and new to the HOA system.

I purchased a home which was a previous developers model home. My home and my neighbors home were used as the two model homes for a development of an additional 20 homes. The developer subsequently went bankrupt. We each purchased our homes short sale from the previous developer. Each home was held on a seperate mortgage, seperate from the rest of the development. A new developer purchased the remaining development from the bankrupt developer and has started building a few homes. After a year no new homes have been purchased and occupied. We were recently approached by the developer telling us we needed to start paying monthly HOA fees.

We didn't purchase a home from them. They purchased after we did. There are no other residents. We have maintained our property in the meantime. This is not a gated community with any private facilities (ie. a pool etc.)

Do we have to join a HOA and pay the fees? (Live in Florida)

Appreciate any opinions, thoughts, similar experiences.

Thanks in advance.

Petunka, Thank-you very much.

Yes, it is in Florida. Sarasota County. If you could direct me to where I can begin my search online I would again appreciate it.

Development #1 was expected to be HOA, but never developed further besides the two model homes built. I am not on the Board of this development. No additional homes were built or sold by Developer #1. My neighbor and I purchased the homes seperately from the bank which held each property on seperate mortgages. We did not purchase from Developer #2. The remaining lots were then sold by Developer #1 to Developer #2 which adopted the same development name, uncertain as to the "Declaration of Covenants."

I have not seen any deeds/agreement between Dev#1 and Dev#2.

Again, any direction is much appreciated. I am not a native Floridian nor have I ever paid HOA in the past properties.

Mart, you may be lucky and be exluded from the Dev #2 HOA. Here is the link to Sarastoa county records. If any problems, any real estate secretary could show you how to do for a box of good chocolates:-) I will also send you another link tomorrow to search for corporations, need to run.

http://www.clerk.co.sarasota.fl.us/subcondo/

You are certainly welcome and I would also give a copy of your deed to the Dev.#2 to tell him that your property is not subject to any covenants or restrictions .. and that should certainly end it. If he does challenge you at least you will be prepared but I do not think he will.

Mart,

Here is the link to Florida Department of State. You want to search Corporations by Name, i.e. your Association Name. If you scroll down you may be able to view all Annual Reports filed by Dev #1 and on. Whoever is the ’Registered Agent’ for FY11 should receive a copy of all official/legal documents.

http://sunbiz.org/search.html

You may want to meet with an attorney more familiar with business and contractual law instead. Real Estate attorney's are good for property closing and deed researches. Your now dealing with contracts which your CC&R's are. The Real estate attorney may point you in the right direction and be good for general questions. However, don't depend on them as the one and only source.

There is no "HOA system". A HOA is created by the developers as a sales tool and tax write off. After they get out, they turn it over to the residents to handle. That is when it basically becomes an exclusive club that only owners can join and run. The HOA is the system you and the other owners create yourselves.

The covenants were recorded, certified and signed by the surveyor and county in May 2008. I do not know if Dev#2 adopted the orginal covenants or filed an amendment. The only document from the first link that appears when I do a search on the county database based upon the development "name" is the original document described. Nothing from Dev#2. Again, Dev#2 is using the same "name" for the development.

The deed includes the following: "Subject to restirctions, reservations and easements of record, if any, and taxes subsequent to 2009." and "GRANTOR HEREIN COVENANTS THAT SUBJECT PROPERTY IS NOT HIS HOMESTEAD NOT CONTIGUOUS TO HIS HOMESTEAD."

As per your second link, the last two documents filed are the annual report dated April 30, 2009. And the recent reinstatement document dated January 4, 2011. Our deed is dated August 30, 2010.

The registered agent is not a lawyer to the best of my knowledge and is a local home developer. He was developing Dev#1.

I'm talking with our real estate lawyer again tomorrow. Again, he originally told us that since the rest of the development had been foreclosed on and the Bank owned it the home we (and the neighbor) bought were not apart of the sale to Dev#2, so he was of the opinion that we do not have to abide with whatever rules and regulations a new developer (in this case Dev#2) would put in place.

Dev#2 is a nationwide developer. Don't expect them to go south. But heck, they could always sell to someone else again.

Mart,

you have probably not been given the Disclosure Summary either (Florida law Chapter 720.401)
_____

720.401 Prospective purchasers subject to association membership requirement; disclosure required; covenants; assessments; contract cancellation.—(1)(a) A prospective parcel owner in a community must be presented a disclosure summary before executing the contract for sale. The disclosure summary must be in a form substantially similar to the following form:

DISCLOSURE SUMMARY
FOR
(NAME OF COMMUNITY)

1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION.

2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY.

3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $____ PER ____. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $____ PER ____.

4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.

5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A LIEN ON YOUR PROPERTY.

6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $____ PER ____.

7. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.

8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING DOCUMENTS BEFORE PURCHASING PROPERTY.

9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED FROM THE DEVELOPER.

DATE: PURCHASER:

PURCHASER

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html

The deed includes the following:
"Subject to restrictions, reservations and easements of record, if any, and taxes subsequent to 2009." and "GRANTOR HEREIN COVENANTS THAT SUBJECT PROPERTY IS NOT HIS HOMESTEAD NOT CONTIGUOUS TO HIS HOMESTEAD."
__

OOps, I forgot .. I think it means that the property was not own by an individual but rather by a corporation or another entity.. but I can be wrong.