JohnB64
Posts: 8
Posts: 8
Posted:
I was curious about who bought the house next to me so i looked it up on the property appraiser and it said it was sold to the quail ridge estates homeowners association can a hoa buy a house in the community?
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Can the homeowners association buy a house in my neiborhood?
Started by JohnB64 • 7 replies • 1330 views
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GlenL
Posts: 5,429
Posts: 5,429
Posted:
It depends on whether the practice is prohibited in either your CC&R's or state law, absent that they can. Our CC&R's for instance and I believe state law both prohibit it without approval from the homeowners.
KevinK7 (Florida)
Posts: 1,326
Posts: 1,326
Posted:
There is nothing really illegal about it. Don't recall ever reading anything in the statutes. I would believe the answer lies in you covenants and restrictions. I had read some C&Rs that state the HOA can purchase things such as properties. That won't excuse the property from the C&Rs though.
JohnC46 (South Carolina)
Posts: 14,230
Posts: 14,230
Posted:
John
Enquire of the association BOD. So far you have "guess" answers of which mine might have well been.
Hope this helps.
Enquire of the association BOD. So far you have "guess" answers of which mine might have well been.
Hope this helps.
MelissaP1 (Alabama)
Posts: 13,734
Posts: 13,734
Posted:
I am confused on the situation. Is this an outside HOA or is it your own? If it is your HOA, did they buy it in a foreclosure sale. That would make the most sense. If they did, then it would be listed under their name.
My other question is the source of information. A property appraiser may not know for sure. Two things assured in life: Death and Taxes. It's best to go with the tax assessor's office on their records. Although they may lag a bit due to registering between owners.
I don't see why a HOA would buy this property but they can. Just don't understand why they would.
My other question is the source of information. A property appraiser may not know for sure. Two things assured in life: Death and Taxes. It's best to go with the tax assessor's office on their records. Although they may lag a bit due to registering between owners.
I don't see why a HOA would buy this property but they can. Just don't understand why they would.
Former HOA President
BruceF1
Posts: 2,516
Posts: 2,516
Posted:
Some CCRs have a clause stating that the association has the right of first refusal when a home is offered for sale. (Our Declaration, or CCRs, contains such a clause.) Thus, it could be entirely possible, and permissible, for the association to purchase a home in the community.
JonD1
Posts: 2,310
Posts: 2,310
Posted:
Many years ago we had several units go into sale for non-payment of taxes. At the time I was new on this Board and many of the long time Board members fancied themselves as knowing everything.
We too have the right of first refusal in our documents. I had suggested we consider buying these units and either renting them or selling them at a hefty porfit for the cash strapped association.
The President who was unable to handle his own personal finances told the other yo-yos the Board could not purchase these properties because we are a non-profit corpoaration which in fact had nothing to do with this matter. The other dumbells agreed with the President.
Thinking outside the box was foreign to any of these folks.
So YES in some cases there just might be GOOD reason for the HOA to buy a unit. It just might benefit the HOA.
In my case when the next units came up for sale I bought them. At one point their value was 5 times what I paid. They continue to be rental properties for me today. The HOA's loss my gain.
We too have the right of first refusal in our documents. I had suggested we consider buying these units and either renting them or selling them at a hefty porfit for the cash strapped association.
The President who was unable to handle his own personal finances told the other yo-yos the Board could not purchase these properties because we are a non-profit corpoaration which in fact had nothing to do with this matter. The other dumbells agreed with the President.
Thinking outside the box was foreign to any of these folks.
So YES in some cases there just might be GOOD reason for the HOA to buy a unit. It just might benefit the HOA.
In my case when the next units came up for sale I bought them. At one point their value was 5 times what I paid. They continue to be rental properties for me today. The HOA's loss my gain.
RichardP13
Posts: 1,760
Posts: 1,760
Posted:
Ask the HOA if they had foreclosed on the property as they would now be listed as title owners.
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