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DaveE1 (Colorado)
Posts: 33
Posted:
We bought a sizable rural lot in a large residential development. This development was created in 1999, however the developer never followed through, and actually created the HOA that was outlined in our covenants. He did file the covenants at the courthouse, and they are attached to all the warranty deeds, however the developer abandoned us over 10 years ago. Problem is, he remains the Declarant in our covenants and still holds the title to the 319 acres of what was supposed to be Community property, and was to be turned over to the HOA. Obviously, we need a good attorney, however I'm wondering if the covenants are still valid?
TimB4 (Tennessee)
Posts: 21,061
Posted:
The covenants exist because they were properly filed and attached to your deed. the only way to remove the covenants is to have all parties agree to abolish them, then file the appropriate paperwork with the county and attach it to your deed.

Even if an Association was created then abolished, the covenants would still exist.

What needs to happen is for the membership to get together, locate a good attorney, pay the attorney fee and court costs to receive a court order to force a turnover of the Association and, if your lucky, all land designated within the PLAT as common area.

However, if the bills are being paid and the common elements are being maintained, it may be difficult to justify the need for a court order to turn the Association over to the members.

LarryB13 (Arizona)
Posts: 4,099
Posted:
I think this can be divided into two separate questions:
1. Are the CC&R's still in effect? and
2. Do you have an association to do whatever the CC&R's say the HOA is supposed to do?

Parts of your CC&R's would still be valid. For example, if the CC&R's prohibit painting your house purple you cannot do so.

If the association called for in the CC&R's was never legally formed -- something the developer should have done before he ever sold the first lot -- then those parts of the CC&R's relating to the association may be void.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Dave

Go to the Forum Search above, click on it and enter inactive hoa to search on. There is plenty of information on this subject.

Hope this helps.
DaveE1 (Colorado)
Posts: 33
Posted:
Thus far, I've spoken to 2 attorneys, in my quest to find one that we want to hire. In our initial discussions, both Colorado Attorneys have commented that the covenants may no longer be valid due to the length of time no association was formed. While our developer/declarant never would form an association, a frustrated landowner did re-instate our active status with the Sec. of State and kept it current till he moved. He also set up a checking account for our association. So, I'm wondering if this was a legal, valid association, in that it didn't involve the declarant? The person accepting the responsibility for the association after the organizer moved out promptly let the association again become inactive again in May, 2007, where it's remained ever since.
Now this same party that let it go inactive, has sort of taken over the 319 acres of what was supposed to be community property, by putting his cattle herd in there and ruining it. Pretty nice huh?
FredS7 (Arizona)
Posts: 927
Posted:
> both Colorado Attorneys have commented that the covenants may no longer be valid due to the length of time no association was formed.

This is a surprising comment, and contradicts my understanding of covenants, which is that they run with the property. (And 1999 is not that long ago, we're not talking about 1899).
CharlesB5 (Colorado)
Posts: 11
Posted:
Contact a Colorado law firm that specializes in HOA matters and is thoroughly familiar with CCIOA (the Colorado Common Interest Ownership Act). CCIOA (pronounced like "Iowa" with a "K" in front) is the Colorado statute that governs the workings of HOAs within this state. Homeowner associations that were created on or after July 1, 1992 are subject to the provisions of CCIOA (as amended).

For the names of law firms specializing in HOA matters, get in touch with CAI- Rocky Mountain Chapter.

RogerB (Colorado)
Posts: 5,067
Posted:
DaveE, your Covenants are valid. If you need a good HOA attorney we can recommend several which my management company uses if in the Denver area. You can contact me at my email address: [email protected] The HOA is a separate entity which they homeowners may be able to take over from the Developer unless the Developer still control the HOA via ownership of enough units (lots). Incorporation with the state of Colorado, or reinstatement if previously incorporated, can be done online through the secretary of State's website.
DaveE1 (Colorado)
Posts: 33
Posted:
Thanks to those that have offered their opinions and knowledge on this matter. Obviously, there is a whole lot more to this than I've mentioned. For example, our developer EXEMPTED us from the CCIOA, and according to the Colorado Public Information Officer on HOA's, he is able to do this by virtue of our annual owner assessment being less than $400.00/year.
We're in South Central Colorado, and the law firms I've found around here do not specialize in this field of law. So, we have looked to the front range for more specialized law firms, however that has it's disadvantages as well, as they may not want to work a case so far from their area. They would also likely charge a lot of money to get involved. Then, some attorneys feel they lose the home court advantage when not being a local attorney the judge knows....

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