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NathanC (Colorado)
Posts: 6
Posted:
I recently purchased a home where the real estate listing said there is NO HOA. I even searched the DORA website in Colorado to confirm that there as no HOA in our subdivision. Now a neighbor claims to be on the board, no documents have ever been provided and they don't asses dues but want to have new rules. If they want to re-instate the HOA, what will have to happen? Will it require a majority of homeowners to agree?
DaveD3 (Michigan)
Posts: 796
Posted:
Are there deed restrictions on record as being attached to your property?

NathanC (Colorado)
Posts: 6
Posted:
I don't believe so.
GlenL (Ohio)
Posts: 5,491
Posted:
Nathan you need to know for sure, if you don't have a copy of your deed handy, it may be available on your County Recorder's website. One of four things is going on:

1. There was a HOA and it was properly dissolved and no longer exists.

2. There was a HOA and it was not properly dissolved but merely allowed to languish and the corporation was administratively dissolved by the state.

3. There are no deed restrictions requiring and HOA and your neighbor is trying to Buffalo you.

4. There are no deed restrictions on your property.

1, 2 or 4 it would require every homeowner to agree to be bound by deed restrictions in my non-legal opinion.

If it's option 2, then yes a small group of homeowners could restart it or if there are deed restrictions any of your neighbors could sue you in court to enforce the restrictions. Did you have legal representation at closing?

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
Sorry Nathan, I thought of another one after I logged off.

5. If there are deed restrictions and for whatever reason the HOA was never formed in the first place.

If so, then yes it would be fairly easy to establish it.

Studies show that 5 out of 4 people have problems with fractions
RogerB (Colorado)
Posts: 5,067
Posted:
Quote:
Posted By NathanC on 08/23/2014 6:12 PM
I recently purchased a home where the real estate listing said there is NO HOA. I even searched the DORA website in Colorado to confirm that there as no HOA in our subdivision. Now a neighbor claims to be on the board, no documents have ever been provided and they don't asses dues but want to have new rules. If they want to re-instate the HOA, what will have to happen? Will it require a majority of homeowners to agree?

Based on what your neighbor told you there appears to be a voluntary HOA with no dues paid by any homeowner chosing to join. With no due to members and no assessment to the properties there are probably no funds available to enforce Covenant restrictions or anyother rules the HOA may chose to create.

There may be Covenants regardless of what the real estate agent listed. Also, an HOA may exist and not be listed with DORA. Remember that the HOA is independent of the Covenants. Covenant "run with the land" and are independent of the HOA. An HOA can enforce the Covenants as well as function for social and other purposes. The HOA does not need to be incorporated; but if it is it will be listed on the Colorado Secretary of State website.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By NathanC on 08/23/2014 6:12 PM [emphasis added]

If they want to re-instate the HOA, what will have to happen?

Are you saying that there used to be an HOA and when you purchased it simply wasn't active?
NathanC (Colorado)
Posts: 6
Posted:
No restrictions listed on the deed. There used to be an HOA but is now inactive. It is listed as inactive on the closing paperwork for the purchase.
NathanC (Colorado)
Posts: 6
Posted:
No restrictions listed on the deed. There used to be an HOA but is now inactive. It is listed as inactive on the closing paperwork for the purchase.
TimB4 (Tennessee)
Posts: 21,059
Posted:
The deed itself, I don't believe, would have actual restrictions on it.
The restrictions would likely be a separate document which is recorded and cross referenced to your deed. To be sure that there are no restrictions, you would need to go to the County records office and have them check for you.

Inactive is not the same as dissolved. Therefore, it's likely that motivated individuals can reactivate the Association. The Association may be voluntary or it may be mandatory. To be sure, you would need to do research.

Since your neighbor is on the Board of Directors, why not invite them over for a beer and talk about your concerns.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I am not nor do I play a lawyer.

Typically deed restrictions are noted on the deed page as existing and where a copy of such are located versus physically attached to the actual deed. Our Deed Restriction is 32 pages long. When doing a deed search, one is directed off to where the deed restriction document is located and one can request a copy.

Not uncommon for deed restrictions to be filed after the original deed. One example is a landlord signs a long term lease with a tenant. In one case my business had a 20 year lease with the landlord. My lawyer did register the lease with the deed so any purchaser was aware that such lease agreement existed. Seems to me the reason was leases expire in 7 years unless registered with the deed....but as I said.....I am not nor do I play lawyer.

GlenL (Ohio)
Posts: 5,491
Posted:
Nathan, typically the restrictions (at least in Ohio) will be referenced something like this:

Subject to covenants, easements and restrictions of record, if any... and there is often a phrase such as: As recorded in Book XXX Page XXX

Studies show that 5 out of 4 people have problems with fractions
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JohnC46 on 08/24/2014 4:52 PM

Not uncommon for deed restrictions to be filed after the original deed.

Actually, that is not common practice. Once a property has been sold the seller has no power to retroactively impose deed restrictions as he no longer owns it. The only way I can think of for a seller to legally impose restrictions after the sale would be if there was a clause in the sales contract allowing that to happen. In my state and likely many others, such a contract would have to be in writing.

The OP is not at all clear as to his situation. In his initial post he claims there is no HOA, implying that there are no CC&R's recorded and there never has been an HOA. In a later post he states that there used to be an HOA, that it is inactive, and its inactive status was mentioned in the closing paperwork. This latter information implies that there are CC&R's recorded and that they created an association, otherwise the information about the dormant association would be irrelevant. I do not mean to imply that the OP is not being truthful; I think he just does not understand what he bought.

NathanC (Colorado)
Posts: 6
Posted:
It's true, I didn't completely understand the situation when I purchased. The listing said no HOA. During appraisal we found out that there was once an HOA. A search of the department of real estate in CO, showed no listing of an HOA. The sellers, who had lived here for several years, signed a document during closing stating that there was no active HOA. They also told me that there has never been a meeting or election or dues or anything else since they moved there. In CO, an HOA is required to have annual meetings. So it's definitely inactive, but I'm just afraid there may be a desire to re-start that whole mess. I'm hoping it's not that easy as I think that an HOA is more trouble than it's worth.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
Are there Covenants and Restrictions applying to your property on file with the 'register of deeds' ?

I am not sure, or I don't know, or I'm 99.9% sure are NOT satisfactory answers for the purpose of YOUR financial health.

Go to your county seat - find the register of deeds - LOOK IT UP IN PERSON - get CERTIFIED copies (if any are recorded).

REREAD your actual deed - find language similar to: subject to any recorded restrictions or easements of record

Are there, IN FACT, recorded restrictions/covenants/conditions (CCRs) ??

If yes - you ARE bound to an HOA

If no - you want the lack thereof DOCUMENTED

ps. what was your ATTORNEY doing at the closing ? twiddling his thumbs ?
NathanC (Colorado)
Posts: 6
Posted:
I agree with you, that's why I'm trying to clarify what the specifics are. I have the deed it is a "Warranty Deed" It does not list any restrictions. I will visit the County Clerk and find the specifics of any CCRs that are associated with my property. In Colorado it's very rare to have an attorney involved in a real estate transaction.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
99% of all deeds are warranty deeds (the seller warrants ownership & clear title)

you can have clear title with recorded restrictions !

1% are 'quit claim' deeds used primarily for family member to family member transfers

your deed will NOT SPECIFICALLY list the restrictions

your deed may, or may not, contain language similar to:

"...subject to any recorded restrictions or easements of record..."

FIND OUT PERSONALLY AT THE REGISTER OF DEEDS OFFICE - get any result(s) certified

then

CONFIRM STATUS WITH AN ATTORNEY
FredS7 (Arizona)
Posts: 927
Posted:
A couple things not mentioned so far

> the real estate listing said there is NO HOA

This has no significance at all. There are disclaimers attached to real estate listings. The buyer has a obligation to verify things.

> the deed it is a "Warranty Deed" It does not list any restrictions.

OK but did the title report list any EXCEPTIONS?

> The sellers, who had lived here for several years, signed a document during closing stating that there was no active HOA.

And they were apparently correct. BUT. You need to distinguish between restrictions or covenants and the HOA. Without an HOA, there can still be valid restrictions which can be enforced at any time. The thing is, the only mechanism to do this is for one of your neighbors to file suit.

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