How do I extend covenants in NC?

Started by BrianC8 • 11 replies • 1833 views

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BrianC8 (North Carolina)
Posts: 4

Posted:

Hello,
I am looking for sage advice about extending HOA covenants in NC.

Our covenants expire 1/1/2014 and contain the following provision:
These covenants are to run with the land and shall be binding on all parties and all persons claiming under them until January I, 2014, on which date they shall automatically expire, unless extended by a recorded instrument signed by owners of all lots.

It is unclear what constitutes a "recorded instrument signed by owners of all lots". Inquiries to the Register of Deeds have yielded no clear direction.

Any relevant NC experience is most appreciated.

Brian

TimB4 (Tennessee)
Posts: 21,061

Posted:

Brian,

The "instrument" would simply be paperwork with the proper legalize on it (contact your Associations attorney for the proper wording).

To "record" the instrument, it would be filed at the County Court House or your County property records office.

NOTE: per your citation, you must have 100% of all property owners agree to extend. If even 1 property owner refuses, they may not be extended.

BrianC8 (North Carolina)
Posts: 4

Posted:

Thanks for your prompt reply Tim.

JohnB26 (South Carolina)
Posts: 1,569

Posted:

ALL ~ 100% ~ of actual OWNERS, NOT 'tenants' or 'residents' MUST SIGN "AYE"

it would be wise to seek attorney's advice as this seems insurmountable

i would ASSUME (yea yea yea) that only one owner of a given lot would need to sign

imo: even one 'abstention' would allow CCRs to expire

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I would kill 2 birds with one stone and also upgrade or change up your documents. Starting with reducing that voting requirement. Just because those docs expire does not mean the HOA dissolves. It is just expired.

Former HOA President

GlenL (Ohio)
Posts: 5,491

Posted:

Quote:

Posted By MelissaP1 on 03/04/2013 10:31 AM
I would kill 2 birds with one stone and also upgrade or change up your documents. Starting with reducing that voting requirement. Just because those docs expire does not mean the HOA dissolves. It is just expired.

No the corporation that is the HOA isn't automatically dissolved, you will need to follow the proper legal procedures to do that, including disbursing all monies held by the HOA. It does mean that the HOA will have no, zero, zilch authority to enforce the covenants because they will no longer exist unless they are renewed. And as John pointed out it only takes one person refusing to sign to invalidate to covenants.

Studies show that 5 out of 4 people have problems with fractions

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I believe it would be easier to get folks to go along with the extension by treating it as a simple, pain in the butt, sorry we have to do this, legal matter rather then change anything.

Many are willing to accept status quo rather then change.

My advice is start now. All it will take is one fool to screw it up. Nevermind a few with with hard questions that might be satisfied. I am talking the one fool owner. You know him. The one with the tin foil hat.

JohnB26 (South Carolina)
Posts: 1,569

Posted:

the covenants address deed restrictions

the hoa maintains any commonly owned property

? do y'all own anything in common ?

retention pond - drainage ditch - roads - pool - rec area - entrance sign - etc

if so it MUST be maintained for liability reasons (incorporated hoa)

any deed restrictions are superfluous (color of house, height of fence, etc)

good luck

CAVEAT EMPTOR

JohnC46 (South Carolina)
Posts: 14,265

Posted:

John

any deed restrictions are superfluous (color of house, height of fence, etc)

While things might well be more important, controls like the above are not what I would call superflous (redundant, unnecessary, needless, odd, surplus) as they are part of the tool set that gives an HOA the ability to maintain its "standards".

JohnB26 (South Carolina)
Posts: 1,569

Posted:

superfluous in the context of the required maintenance of the common elements

STORM WATER RETENTION POND being the key element

BrianC8 (North Carolina)
Posts: 4

Posted:

Thanks John. We're seeking legal advice.

BrianC8 (North Carolina)
Posts: 4

Posted:

...and we do own several acres of nice land and a scenic pond which pre-dates the sub-division.

Thanks to all for your suggestions.

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