šŸ’¬ Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚔ Takes 30 seconds

Already a member? Log in

TonyH4 (Tennessee)
Posts: 3
Posted:
I have purchased a home and have lived in a "resort" for the past three (3) years without having paid HOA fees nor have I been notified of any HOA meetings. Now, an individual has sent notice, by mail, that he has purchased the rights to the HOA and is now in the process of enacting the CC&Rs along with fees. Notice of a scheduled meeting has been received by mail. Can this be possible? I thought the HOA has been dissolved based on not having any board, members or meetings for the past 6 - 7 years. The "resort" originally was private with rental cabins. The resort had finanical problems and had to sell off the cabins. Many were purchased by individuals for the purpose of placing them on rental programs, while others were purchased as private homes, mine being one of the private homes. My question, can this person, organization or whatever, come into area to create an HOA after the previous owner had defaulted and sold off the cabins to private owners. No prior improvements, maintenance etc had been provided.
PetunkaM (Florida)
Posts: 1,009
Posted:
Tony,
Hard to tell what is going on. Have you received a copy of CR&Rs? Was it originally set up as a not-for-profit corporation? You need to check if your HOA was really dissolved (or just inactive) and what happened to the common areas. Your settlement attorney should know, hopefully.
You may also want to check who reinstated the corporation name, its status and if it has exactly the same name. It should be in the public records, State Dept. Office of the Secretary in TN. The county public records should also reveal if there was a settlement on the common areas of the property.
Also, please check your deed and if you can post what it says it would be helpful. Specifically, does it include any restrictions and plat description?
TonyH4 (Tennessee)
Posts: 3
Posted:
The letter stated that the common areas consisted of walking trails, bicycle lanes and roads. Stated that the clubhouse, swimming pool, tennis courts and the horseshoe pits are different identities that require separate fees. There are no walking trails, bicycle lanes - only roads.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Tony - you speak about an "owner." That owner was responsible for care-taking of all those assets you listed.

Apparently, there never was a turnover to a Member-run HOA and the property was under the ownership of a corporation. When that owner went belly-up, someone bought the property and is now your new owner.

Time to backtrack and look at the CCRs and bylaws and see exactly what the cabin owners have really purchased and what rights/responsiblites they have. I suspect it is not the land, but rather the structures you own.

Ask for a sit-down and explanation with the new owner - and bring your own attorney, one versed in HOAs. You cabin owners are going to need one.
PetunkaM (Florida)
Posts: 1,009
Posted:
Quote:
Posted By TonyH4 on 08/30/2011 7:41 AM
The letter stated that the common areas consisted of walking trails, bicycle lanes and roads. Stated that the clubhouse, swimming pool, tennis courts and the horseshoe pits are different identities that require separate fees. There are no walking trails, bicycle lanes - only roads.

Tony,

that would be correct. Some state laws require all recreational areas have a separate budget regardless who owns them.

Again, who maintains the roads? If the association was truly dissolved then the roads could have been taken over by the county. Otherwise the HOA membership would be responsible if there was an HOA to begin with. Is it possible the resort has been and, still is, a private for-profit corporation?
TonyH4 (Tennessee)
Posts: 3
Posted:
Susan, I own both the dwelling as well as the land, as does others in the resort. Ownership changed for the office space, clubhouse, tennis courts and swimming pool. We have never used the above mentioned facilities. All are in bad disrepair. So called common areas - walking trails, bike lanes etc do not exist.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
I thought the HOA has been dissolved based on not having any board, members or meetings for the past 6 - 7 years.


Just because a HOA has been "inactive" for 6-7 years, doesn't mean you dont owe. It depends on your CCR's. Its possible you could owe dues for those 6-7 years even if the HOA had not been active in collecting the dues.

Quote:
We have never used the above mentioned facilities. All are in bad disrepair.


Just because you dont use the facilities, doesn't mean your not obligated to pay for them. It may be split equally among everyone OR maybe just people who use it. Every HOA is custom, I cant guess what "your" paperwork says.

Check your deed and CCRs to see if you need to pay.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Tony,

The clubhouse, office space, pool and tennis courts are typically the common area.

As Steve said, being inactive is not the same as being dissolved.
Being administratively dissolved by the County is not the same as being dissolved by the membership.

One member on this site had a similar situation happen to her. I don't recall who it was. If they are still active, hopefully they will respond.

Tim
PetunkaM (Florida)
Posts: 1,009
Posted:
'Check your deed and CCRs to see if you need to pay.'

Pay to whom?
PetunkaM (Florida)
Posts: 1,009
Posted:
This is what state of Tennessee says. This is why I suggested to check these records to determine what type of corpoation the resort was/is and what really happened.

'What is Administrative Revocation?

Administrative revocation occurs when a corporation’s charter is administratively dissolved by the Division of Business Services for any of the following reasons:

1. Failure to file annual report with the Division of Business Services within two months after it is due;
2. The corporation is without a registered agent or registered office for two or more months;
3. The name of a corporation fails to comply with the name provisions of TCA §48-14-101
4. The corporation fails to notify the Division of Business Services within two months that its registered agent or registered office has been changed, that its registered agent has resigned, or that its registered office has been discontinued;
5. The corporation’s period of duration stated in its charter expires; or
6. The corporation submits to the Division of Business Services a check, bank draft, money order or other such instrument, for payment of any fee and it is dishonored upon presentation for payment.

The Division of Business Services administratively dissolves the corporation by issuing a Certificate of Dissolution. The certificate shows the reason(s) for dissolution and its effective date. An administratively dissolved corporation continues its corporate existence but may not carry on any business except that which is necessary to liquidate its business, close operations, and notify claimants. The administrative dissolution of a corporation does not terminate the authority of its registered agent.'

http://www.tn.gov/sos/bus_svc/corpFAQs.htm

šŸŽÆ You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • āœ“ Ask follow-up questions
  • āœ“ Share your experience
  • āœ“ Get expert advice
  • āœ“ Access 350,000 discussions
Create Free Account →

⚔ Takes 30 seconds

Already a member? Log in here