Performance of an Obligation

Started by SteveW9 • 8 replies • 2416 views

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SteveW9 (New Mexico)
Posts: 37

Posted:

According to our CCRs, “Owner” shall mean and refer to the record of owner…but excluding those having such interest merely as security for the performance of an obligation.”

Could someone please give me some examples of those who are excluded?

Thanks.

JayP3 (Florida)
Posts: 154

Posted:

"According to our CCRs, “Owner” shall mean and refer to the record of owner…but excluding those having such interest merely as security for the performance of an obligation.”

Could someone please give me some examples of those who are excluded?

Thanks."

Are you sure it is not 'owner of record' rather than 'record of owner'?

Anyways, if one uses the property as collateral or similar for a loan or other security, the creditor is NOT considered an 'owner of record' for purposes of HOA membership.

SteveW9 (New Mexico)
Posts: 37

Posted:

My mistake. The CCR states: “Owner” shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Properties, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Steve

I am not nor do I play a lawyer.

Lets us say I own a "unit" but I actually have a 1st, 2nd, 3rd mortgage, some argue I do not own it but my lenders (obligators???) actually own it, not me. I have seen this arguement used that "mortgage" holders (not the owner alone) must "approve" things/changes.

Saw an HOA issue in MA where an HOA approved some general changes that an owner could make. A fellow owner against the changes argued that any mortgage holder must also approve the requested changes. It went to dueling lawyers. The fellow owner dropped it as they were told (by their laweyer) they would lose.

Hope this helps.

CarolR11 (Colorado)
Posts: 2,563

Posted:

Steve, What is the purpose of your question? What is it that you want to learn?

FredS7 (Arizona)
Posts: 927

Posted:

"Record owner" makes no sense either. It could be "recorded owner", or a misprint.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By SteveW9 on 04/09/2013 5:11 PM
According to our CCRs, “Owner” shall mean and refer to the record of owner…but excluding those having such interest merely as security for the performance of an obligation.”

Could someone please give me some examples of those who are excluded?

Thanks.

It refers to the holder of the mortgage (the bank or the lender). One who has "interest merely as security for the performance of an obligation" would be, for example, the mortgage lender. "Security" refers to the fact that the hone is collateral for the loan, and the "obligation" refers to the "record owner's" obligation to pay the loan. It could also refer to a private individual if a former owner sold the home to another on an installment plan. The sentence is intended to convey the rights of membership (eg. voting rights, use of common facilities etc.) only to the owner who is the recorded owner on the deed, but not to others who may be on the deed simply because they "hold" the deed as collateral (security).

MatthewW4 (Arizona)
Posts: 500

Posted:

Quote:

Posted By FredS7 on 04/10/2013 4:56 AM
"Record owner" makes no sense either. It could be "recorded owner", or a misprint.

Fred,

I found that "record owner" is a term used in financial circles to describe "the stockholder of record as distinguished from the beneficial owner."

Source: http://financial-dictionary.thefreedictionary.com/record+owner

In this context, the term would seem to differentiate between those whose names are on the deed and those who have an interest in the property but are not named on the deed. That would include not only mortgage lenders but also those who stand to inherit the property on the death of the owners.

SteveW9 (New Mexico)
Posts: 37

Posted:

Thanks to everyone! You have answered my question.

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