Dissolved HOA, are CC&R's still enforceable?

I am considering acquiring a property, I want to build casitas on the property as a B&B basically. I have found the perfect location and it was clearly described as no HOA when I initially put in the bid. Great, until further investigation shows there a HOA until 2008. It was dissolved (administrative dissolution) in that year.

I have gotten a copy of the CC&Rs for that HOA and it will clearly put me in breach if I build the B&B. I had assumed all I had to deal with was City planning but now potentially its much more complicated.

If the HOA is dissolved, are CC&R's still enforceable? Could someone else in this 'HOA' claim that I am in breach of this agreement? The seller did not disclose the HOA as it has been defunct for so long they had no idea they were even in one. Frankly, the property is already in breach as the CC&Rs are unbelievably restrictive. I'd say there are a fair number of property owners in this estate who have no idea they are in a HOA having bought post 2008 and could also be liable...

Forgot to add,

If you want to do something that you know is in violation of the Deed Restrictions, then go through the process to amend those Restrictions.

If the Association is non-functional, then you might actually achieve amending or abolishing those restrictions. Then you would not need to worry about anyone taking action for violations in the future.

Tim

If there are no common areas there is no need for an association. I have owned three homes in Phoenix over the years. Two had CC&R's but no association. The owners within those two had the power to enforce the restrictions through court action although I do not know of anyone actually doing it.

If violations of the CC&R's are widespread, one can argue that the owners have collectively waived part or all of the deed restrictions. You should seek the advice of an attorney before moving forward.

> Is there anyway to buy the property and then get out of these CC&Rs?

The process for this will be described in the CC&Rs themselves. Generally a considerable number of all the properties subject to the restrictions need to vote in favor (maybe all of them).

> I find it crazy to have to adhere to a set of rules drafted in 1953 that seriously impede my ability to use the land as I choose.

You bought the property subject to the restrictions. If there ARE ways to circumvent the restrictions you are welcome to explore them, and you might even succeed. Or you can go ahead and build in violation and hope that no one objects strongly enough to take it to court. In the absence of an HOA that person would need to pay the legal fees, at least initially, and that might be enough of a deterrent. Do you feel lucky?

I would gently point out that there are all sorts of other restrictions on how you can use "your" property. Zoning, environmental, etc.

I have a copy of the CC&Rs dating back to 1953. Amendments were made in 1985. I can find no explanation as to how to remove the land from the CC&Rs. The only thing I see is that if I make a written request to the committee and receive no response I can proceed with what I propose as long as its not in breach of the restrictions in the CC&Rs (nice circular reasoning)but there is no explanation whatsoever of how to remove a property from the HOA or the CC&Rs. Its not covered. I won't do the development until I have clarity on this. Its my life savings I'd be risking so its not an option. But if I an remove the property from the CC&Rs, that would the best option.

> I have not bought the property yet.

I apologize for not reading that carefully enough.

> I can find no explanation as to how to remove the land from the CC&Rs.

What I should have said- there is probably a procedure for making CHANGES, which is really what you are asking for. (Being relieved of restrictions is a change). In the absence of any procedure for making changes I would GUESS that you would need agreement from all owners.

There IS something called Marketable Record Titles Act in Florida which has to do with requiring specific action to preserve certain types of covenants after 30 years. To the best of my knowledge no such thing exists in AZ (but I am not a lawyer, and I haven't looked).

> The only thing I see is that if I make a written request to the committee and receive no response I can proceed

Sounds risky to me. I think you should seek legal advice beforehand.

Natalie:

If the CC&R's are silent as to how to amend them, then you essentially have two choices if you buy the property:

First, get 100% of the other property owners to either dissolve the CC&R's entirely or at least let you remove your property from the provisions of the CC&R's.

Second, seek a court order to terminate the CC&R's for your property. This would certainly require you to hire an attorney and could easily swallow your life savings with no guarantee of success.

The third choice is to forget about this property and look elsewhere to build your B&B.

again: the CCRs run with the land and are NOT optional or severable

no brainer: door #3