Common Area - Voting

Started by VicS2 • 12 replies • 1728 views

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VicS2 (Georgia)
Posts: 4

Posted:

Stupid question, but for some reason the developer who turned over 18 subdivision lots into to HOA "Common Area" feels these lots would retain voting rights and he being the declarant and Board Member (soley) he obtains the right to cast the vote for those lots.

Does anyone know of a document that would dispute and clarify that?

FrankS10 (Kansas)
Posts: 276

Posted:

Vic,

Were the lots re-classified with the county? You probably already checked your By-Laws? If the "lots" are officially Common Areas now that have been deeded over to the HOA, at least in my community they would not have voting rights.

Frank in KS.

BrianB (California)
Posts: 2,820

Posted:

The document you seek would be your by-laws, probably. Could be in a charter or CC&R, but should be in by-laws.

and, if he pays the annual assessment for each lot, he should get a vote for each lot. If he doesn't pay any assessments, he doesn't get a vote (my opinion, once he turns over the HOA to the other owners).

VicS2 (Georgia)
Posts: 4

Posted:

Yes they were relisted as common area ($10.00 value) in teh Tax Assesors Office, I am sure they do not carry any rights for voting purpose, but declarant is a snake and would love to have a document to shove up his *** Nose.

VicS2 (Georgia)
Posts: 4

Posted:

Brian,

There are currently no By-Laws (common around here whenjust under declarant cnontrol). CC&R's state nothing about Common Area , not sure how it wpould be possible for Him to (vote) on these on behalf of the members?

CarolR11 (Colorado)
Posts: 2,563

Posted:

I agree with Frank & Brian. Since the declarant pays no dues on the lots and no longer is the owner of record, he has no voting rights on them. Presumably your documents--CC&Rs?--say that only owners may cast votes?

is your HOA incorporated? If so, I'd think that your HOA must have bylaws. See your state's corporations code if you're incorporated. If you're incorporated, you also should have Articles of Incorporation. They may provide more detail.

MatthewW4 (Arizona)
Posts: 500

Posted:

Vic,

The place you need to check is the recorder's office. See if the developer recorded deeds on these lots to the HOA. I doubt that he did.

I suspect that what he has done is filed something with the assessor to have the lots assessed as a playground and to get the HOA to pay for mowing and other maintenance on the lots while he tries to sell them. You and all the other owners may unwittingly be participating in property tax evasion.

One other thing to look into: In my area it is common for a developer to partner with a property owner to build a subdivision. The land is put into a trust and the trustee issues a deed for each lot as it is sold. The developer/declarant never actually owns the land and there are no deeds for the unsold lots. Depending on how your CC&R's are worded, if the developer owns no lots (that is, there are no deeds for the unsold lots) he may have no votes at all.

VicS2 (Georgia)
Posts: 4

Posted:

I have in my possession copies of from the County Deeds Office the Quit Claim Deeds and they all notate being registered and moved to the HOA for a $1.00 sum and notated with Book and page number.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By VicS2 on 07/15/2013 9:52 AM
I have in my possession copies of from the County Deeds Office the Quit Claim Deeds and they all notate being registered and moved to the HOA for a $1.00 sum and notated with Book and page number.

If the lots were deed to the HOA and are now owned by the HOA as common area, I don't see how the declarant can claim any votes based on those lots since he no longer owns them.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Bruce,

I don't think they were deeded to the HOA. I think they came under the control of the HOA.

I agree with you that the $1 price does make it sound as if those lots now belong to the HOA. I suppose it will depend on the language contained in the deed.

DaveD3 (Michigan)
Posts: 796

Posted:

What DO your documents state as far as who has the ability to vote? Unit owners only I would assume?

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By TimB4 on 07/15/2013 3:15 PM
Bruce,

I don't think they were deeded to the HOA. I think they came under the control of the HOA.

I agree with you that the $1 price does make it sound as if those lots now belong to the HOA. I suppose it will depend on the language contained in the deed.

They still could have deeded the property to the HOA. All it takes is "consideration" (payment of a sum of money) to transfer title.

It is common in divorce cases for one spouse to quitclaim deed joint property to the other spouse. Before my wife passed from a terminal illness she quitclaim deeded her share of the property to me for the sum of $1.00. Thus the property is now only owned by me, thus avoiding probate.

It is entirely possible that the declarant passed title to the property to the HOA by virtue of a quitclaim deed for the amount of $1.00. The property would now owned by the HOA.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I am not nor do I play a lawyer.

Last time I heard of common property voting was in Chicago......LOL

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