Dissolving an HOA

On the internet I've found: "Title to the HOA-owned portions of the development must usually be transferred to another legal entity when the HOA is dissolved. You might be able to sell them to an investor who is willing to take over maintenance of these areas. Most investors will expect some profit in return." The only common property our HOA has is a wall around a 40-acre compound. If the HOA voted for dissolution, would the homeowners who have a portion of the wall on their property be considered "another legal entity"? We've found no "deed" to the wall at the county. Would it have to be "deeded" to the homeowners where the wall is currently residing on an easement on the back of their property?

Sorry you said wall...Duh...I would still just say let the owners with the wall decide what to do amongst themselves by letting them know there will be no more HOA. Which means there's no power to force anyone to fix or repair the wall. That will fall onto each individual owner with the fence.

I don't believe that the only thing the HOA has is just this wall. There has to be other things like insurance and/or taxes. So if the HOA dissolves make sure the only thing is wall maintence and NOT also other financial or aesthetic purposes. Like having an Archectual Control Committee (ACC). An ACC helps with keeping consistency and the aesthetics of the HOA in line. So just make sure to look at everything involved and then let the owners know what the consequences are by disbanding. That is NO regulations or rules to be enforced. So the properties can just fall into disrepair with only the city/county laws to enforce.

Debra,

The county assessors for both Maricopa and Yavapai each have a fairly sophisticated mapping program that will show you property lines, which may be superimposed over aerial photos. Keep in mind that these lines are not a subsitute for a surveyor's plat, but are helpful in determining if the wall in question is on its own separate lot. Most other Arizona counties are not so easy to find information.

Based on personal experience, the wall in question is most likely built on homeowner's lots and not on some separate strip of real estate. If the wall was built on individual lots then it already has owners. It is not likely that your HOA has title to wall, but you can also do a search on the county recorder's website to see if any real estate has been deeded.

In addition to the wall, see if there are any separate lots for entry signs.

If you need links for the above websites let me know and I will post them.

LarryB13: I live in Cochise Co. I don't think we're as sophisticated! I have a plat of the 40-acre within the association. I'll research tonight when I get home...I believe the wall is on an easement which is on the properties of the outside homeowners. So, I imagine the builder built it on the lots, then did an easement for the entire wall. I will search the recorder's website to see if it has been deeded. I'll also check for separate lots for entry signs. I'd love to see the website you mention. Thanx.

GlenL: In our meeting last night, we created 3 committees (1) research a property management possibility (2) research dissolution (3) clean up our act, modify CC&Rs, etc. I'm tired of people continuing to argue the same arguments without knowledge. We have agreed to study-up, write down all the questions we can think of after the 3 committees come back together, then seek legal counsel. We are a poor association ($29/yr/lot for 68 lots), so we will try to keep the legal fees to a minimum. Of course one of the questions is how many need to vote for dissolution? Our CC&Rs were great when it comes to creating the association, but greatly lacking on dissolution. The wall is not required by any city/county codes. The people who want dissolution do not fully understand how the wall has saved us during wildfires. We were evacuated during the Monument fire Jun 2011. But, I believe the best way to get people to go the way you want them to go is not to tell them NO, but to let them do their own research, guide them asking any questions you believe they have not asked, and let them come to a valid, non-emotional conclusion. Good catch on the mortgage lenders. Since I don't know a mortgage, it didn't cross my mind. Disposing of funds should be bad...as you can see from our dues, we don't have much! The asset of the wall concerns me. I assume someone owns it. You suggest each owner with a wall on their property (with and easement) owns that portion of the wall. I have to check our deed to see what it says about the wall, if anything. If not, we've already had someone try to research a deed or conveyance of the wall to the association to no avail. Seems like it is lost in the ether. The cost of recording a new deed for all the properties along the wall...I assume each property owner would have to initiate the action and pay for that action individually...not the association??? Good point about someone trying to restart the HOA. I assume that it would take all property owners to agree to that? Thank for your input. You both have given me a lot to research. I don't want to dissolve it, I just want those who do to understand the ramifications...not just hearsay or their best guess. Deb