Difference between HOA and Horizontal Property Regime?

Hi everyone, I have a question, we have had an investor buy several units and become majority owner in our small 24 unit condo complex. These new owners are seriously trying to throw their weight around demanding ridiculous assessments and such. They are not running meetings correctly like providing no minutes to prior meetings and such. When we asked about these things we were told that there are different rules for HOA's as opposed to Horizontal Property Regimes. they told us there does not have to be any CC&R's on file with the county. Doesn't sound legit to me.

They are registered as a non profit

All we have is a master deed and bylaws, we have no statement of horizontal regime.

Lisa

The SC Horizontal Property Act applies to apartment style condo buildings. It does not apply to townhomes nor single home associations. Tim has given you links to applicable documents. A bill to control other type associations has been dead in a SC Senate Committee for several years. Some, myself included, work to keep it dead but that is another story.

The SC Articles of Incorporation is riddled with the statement "unless Corporation Bylaws say otherwise". In general, SC does not like to interfere with how corporations operate. They generally defer to the corporation Bylaws.

The answers/procedures as to how your corporation/association should operate will be in your association Bylaws. Bylaws can be different from association to association. Read and understand them.

If your association is being controlled by a BOD of elected fellow owners (be they investors or not) your main recourse is to replace them. You should work toward electing new BOD Members that think/operate as you would like.

If no laws are being broken, do not look for the state of SC to aid you.

Hope this helps.

I would caution to make sure that the property is actually a nonprofit. Most associations are not nonprofit. Most associations are not-for-profit, which is an entirely different legal definition. These two entity types are commonly confused and it causes problems quite often.

Owning 17 out of 24 gives them over 70% voting interest. Depending on your Associations governing documents, this may give them enough of the voting power to amend the governing documents as they desire.

Although you can spend money and have the courts order that the Association follows proper procedure, with that much voting power, it wouldn't change the outcome. It would only force the individual to jump through hoops.

They may be "bullying" you to try and encourage you to move so they can purchase the rest of the property.

Horizontal property regime is the type of development. The Homeowners Association is the organization which manages the operation of that development.

It does sound like the developer is bullying folks to get them to take the low-ball offers and move. If you want to stay, you can, but until they sell some of their units, they are going to be in charge.