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AdrianaG1 (Georgia)
Posts: 9
Posted:
Our covenants read as follows:
"These covenants are to run with the land for a period of twenty-five (25) years from the date these covenants are recorded in the Pickens County Deed Records, after which time such covenants shall be automatically extended for successive periods of ten (10) years unless an instrument signed by a majority of the then owners of lots in the subdivision is recorded agreeing to change said covenants in whole or in part."

Am I correct in interpreting this to mean that ONLY AFTER 25 YEARS, can the covenants be amended by a majority vote? Or if there is a majority vote can they amend the CC&Rs sooner?

Second question - when the CC&Rs does somebody have to certify and record in the county that a majority approved the amended CCC&Rs before filing the new docs with the county?

LarryB13 (Arizona)
Posts: 4,099
Posted:
Adriana,

I have seen similar language in many other CC&R's. One section implies that they cannot be amended for a certain number of years but another section tells you how to amend them. I know of no legal reason why the part about the unchangeable years cannot be amended out of existence if the amending procedure is followed.

Your CC&R's refer to "an instrument signed by a majority of the then owners of lots in the subdivision." There is nothing about a majority vote in what you quoted. The "instrument" contemplated is nothing more than a copy of the proposed amendment(s) or restated CC&R's that have been signed by a majority of the owners. What you record could be either one copy with all the signatures on the same page or multiple copies with one or more signatures on each copy.

Unless the CC&R's state otherwise, anyone may circulate a proposed amendment without permission from the association. There may or may not be a time limit as to how quickly signatures must be gathered. In my association there is no time limit and we have a proposed amendment that has been waiting for over 8 years for enough signatures.

The signatures themselves could possibly remove the need for additional documentation but I doubt that there is nothing wrong with someone certifying that they gathered and witnessed each signature and that the signatures are from a majority of owners.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Adriana,

I am not an attorney and I do not work in the legal profession. I see the citation as separate items:

These covenants are to run with the land i.e. regardless of how many owners there are, the deed restrictions will remain in effect.

run with the land for a period of twenty-five (25) years from the date these covenants are recorded The covenants shall remain attached to the deed for 25 years from the date they are initially recorded with the County.

recorded in the Pickens County Deed Records identifies where the document is to be recorded.

after which time such covenants shall be automatically extended for successive periods of ten (10) years After the initial 25 year time frame, the covenants shall automatically be renewed for another 10 years.

unless an instrument signed by a majority of the then owners of lots in the subdivision is recorded agreeing to change said covenants in whole or in part." The original document shall be renewed as written every 10 years unless it is amended and the amendment is recorded with the same office. Once that is done, the automatic renewal will occur with the amended document (unless the amendment was to remove the automatic renewal).

Therefore, in my opinion, the answer to your questions are:

Am I correct in interpreting this to mean that ONLY AFTER 25 YEARS, can the covenants be amended by a majority vote? Or if there is a majority vote can they amend the CC&Rs sooner?
An amendment may occur at any time providing the proper procedure to make the amendment is followed and the amendment is properly recorded.

when the CC&Rs does somebody have to certify and record in the county that a majority approved the amended CCC&Rs before filing the new docs with the county?
Your CC&Rs require that a physical document signed by a majority of the members be filed. Therefore, as Larry pointed out, a single document with a majority of members signing it or separate documents that account for a majority of members must be filed. The Board may not simply certify that a majority of members agreed (although this is allowed in other Assocaitions).

If only a document certifying such agreement was filed, the Board would be leaving the amendment open for a legal challenge. Being open for a legal challenge is not the same as saying that the challenge would be successful. If the Board can produce documentation that a majority of owners did approve the change (the original ballots, proxies and sign-in sheet) then a judge may only slap the Boards hands for not filing the proper document but rule the amendment stands.

Hope this helps,

Tim
AdrianaG1 (Georgia)
Posts: 9
Posted:
Thanks, Larry, are you a lawyer?

I did not mean to use the term "vote". My question is, given the above language can we modify the CCR&Rs before 25 years if the majority of the members sign it? Or must the conditions be met in the order stated in the original covenants i.e., first the 25 years and after that changes can be made by a majority.
AdrianaG1 (Georgia)
Posts: 9
Posted:
Thanks, Larry, are you a lawyer?

I did not mean to use the term "vote". My question is, given the above language can we modify the CCR&Rs before 25 years if the majority of the members sign it? Or must the conditions be met in the order stated in the original covenants i.e., first the 25 years and after that changes can be made by a majority.
FredS7 (Arizona)
Posts: 927
Posted:
The language you have quoted does not say than the covenants cannot* be amended before 25 years have elapsed.

If there is language elsewhere describing a procedure for amendment then you CAN amend before 25 years, there is no contradiction.

* the double negative is confusing but exactly reflects the content of the sentence.
AdrianaG1 (Georgia)
Posts: 9
Posted:
"If there is language elsewhere describing a procedure for amendment then you CAN amend before 25 years, there is no contradiction. "

There is no orher language in the covenants regarding amendments. This is it.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Adriana

The original sentence is complex and consequently subject to interpretation. Below, I condensed the sentence to your liking.

Quote:
Posted By AdrianaG1 on 09/21/2014 8:51 PM
"These covenants are to run with the land for a period of twenty-five (25) years ... unless an instrument signed by a majority of the then owners of lots in the subdivision is recorded agreeing to change said covenants in whole or in part."

Is this the only interpretation possible? No.
Could you use this interpretation to justify a change to the covenants before the initial 25 years? I think you could.

On the issue of recording amendments, not sure how it works in GA, but here in my little corner of PA, the amending doc we file is signed only by the board members and notarized. In the recitals of the amendment, the circumstances under which voting occurred and passed is described. The meeting minutes supporting this recital are available for inspection. We have modified our declaration 5 times without any challenges to our methodology. Our lawyer prepares the docs.

Sikubali jukumu. Read all posts at your own risk.
AdrianaG1 (Georgia)
Posts: 9
Posted:
Thanks, everybody, we have an appointment scheduled with a lawyer.

Unfortunately, another lawyer drafted new covenants for us a 10 years ago. Even though they only got 1/3 approval, they went ahead and filed revised covenenats agianst the individual property owners deeds! Now what we have is a mess!

(The original lawyer, now deceased, had a huge conflict of interst. He owned a separate subdivision, adjacent to ours, with an easement through our roads and membership for his lots in our POA, with no payment of assessments until the lots sold. Then he died and the economy crashed...

He had completely bamboozled our board at the time and they were and thrilled to receive "pro bono" advice. At on point the association paid his firm to redraft our covenants (the ones that fid not get majority approval but were filed anyways).

I suspect we could have filed a legal malpractice case against his firm but i suspect the statute of limitations has probably passed since it was 10 years ago. We now have a much worse mess than we started with. (The fact that as soon as he dued his partners severed all work on our behalf is telling)
NpS (Pennsylvania)
Posts: 4,216
Posted:
Your new lawyer shouldn't have much trouble getting the 10 yr old filing rescinded if the vote count was inadequate. Good luck.

Sikubali jukumu. Read all posts at your own risk.
GlenL (Ohio)
Posts: 5,491
Posted:
"These covenants are to run with the land for a period of twenty-five (25) years from the date these covenants are recorded in the Pickens County Deed Records, after which time such covenants shall be automatically extended for successive periods of ten (10) years unless an instrument signed by a majority of the then owners of lots in the subdivision is recorded agreeing to change said covenants in whole or in part."

I love legal doubletalk, covenants run with the land for 25 years, with automatic 10 year renewals UNLESS AMENDED but what it doesn't say is if the clock starts over after an amendment or if the automatic 10 year renewals continue.

Studies show that 5 out of 4 people have problems with fractions
AdrianaG1 (Georgia)
Posts: 9
Posted:
"I love legal doubletalk, covenants run with the land for 25 years, with automatic 10 year renewals UNLESS AMENDED but what it doesn't say is if the clock starts over after an amendment or if the automatic 10 year renewals continue."

Isn't that the truth! The ret of the covenants are a joke too! And the roads he built were as bad as the Builder's covenants, too.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By AdrianaG1 on 09/22/2014 8:09 AM
Thanks, everybody, we have an appointment scheduled with a lawyer.

Unfortunately, another lawyer drafted new covenants for us a 10 years ago. Even though they only got 1/3 approval, they went ahead and filed revised covenenats agianst the individual property owners deeds! Now what we have is a mess!

(The original lawyer, now deceased, had a huge conflict of interst. He owned a separate subdivision, adjacent to ours, with an easement through our roads and membership for his lots in our POA, with no payment of assessments until the lots sold. Then he died and the economy crashed...

He had completely bamboozled our board at the time and they were and thrilled to receive "pro bono" advice. At on point the association paid his firm to redraft our covenants (the ones that fid not get majority approval but were filed anyways).

I suspect we could have filed a legal malpractice case against his firm but i suspect the statute of limitations has probably passed since it was 10 years ago. We now have a much worse mess than we started with. (The fact that as soon as he dued his partners severed all work on our behalf is telling)

Adriana

What issues do you have with new versus old covenants?

Thanks
FredS7 (Arizona)
Posts: 927
Posted:
I tend to agree with NpS. Get a majority of homeowners, amend the convenants NOW (if a lawyer agrees that reading is correct). If you amend and record now anything previous becomes inoperative, and you don't need to deal with it.

AdrianaG1 (Georgia)
Posts: 9
Posted:
Quote:
Posted By FredS7 on 09/22/2014 3:40 PM
I tend to agree with NpS. Get a majority of homeowners, amend the convenants NOW (if a lawyer agrees that reading is correct). If you amend and record now anything previous becomes inoperative, and you don't need to deal with it.


Fred that is exactly where I think we are heading.

Problems with old vs. new...old have zero enforcement capability. Cannot issue liens or fines or late fees or collect attorneys fees for non-payment. Cannot do anything about compliance issues except for one resident suing their neighbor. The New (not adopted) corrected those,problems, not quite sure what the problems are with the new, but have been told that they need to be tightened,
GlenL (Ohio)
Posts: 5,491
Posted:
Adriana have you read the Georgia Property Owner's Act? There are things in there that may supersede your documents allowing for easier amending including that that Board can amend the CC&Rs to comply with the Act without an owner vote. You however do need to pay particular attention to detail, for instance the Act specifically allows fines but only to the extent provided in the instruments, which since yours are silent IMO would need to be amended first.

I couldn't find a official GA site with the Act so I can't vouch for the veracity of the info but a copy of the Act can be found here: http://www.cameronglenhoa.com/upload/HOA/GA_POA_44-3-220.pdf

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
which since yours are silent IMO would need to be amended first.

I meant amended with a homeowner vote not a Board vote.

Studies show that 5 out of 4 people have problems with fractions
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By GlenL on 09/22/2014 9:37 PM
Adriana have you read the Georgia Property Owner's Act? There are things in there that may supersede your documents allowing for easier amending including that that Board can amend the CC&Rs to comply with the Act without an owner vote. You however do need to pay particular attention to detail, for instance the Act specifically allows fines but only to the extent provided in the instruments, which since yours are silent IMO would need to be amended first.

I couldn't find a official GA site with the Act so I can't vouch for the veracity of the info but a copy of the Act can be found here: http://www.cameronglenhoa.com/upload/HOA/GA_POA_44-3-220.pdf

Per Glen's comments, not sure if this if current and complete version of statute. But a few things you should discuss with your lawyer are:

44-2-235. It looks like the act applies automatically to all HOAs formed after 7/1/1994 but must be opted in if your original Declaration was filed before that date.

44-3-236(a). Amendments require 2/3 votes.

44-3-236(d). Sworn statement of officer is sufficient for filing amendment.

44-3-236(f). Amendments are presumed valid if not legally challenged within one year.

44-3-231(c). The association shall have the power to amend the instrument, the articles of incorporation, and the
bylaws of the association in such respects as may be required to conform to mandatory provisions of this
article or of any other applicable law without a vote of the lot owners.

44-3-233. Liberal construction and substantial compliance clauses.

Make sure your lawyer explains the significance and impact of each of these clauses on your situation.


Sikubali jukumu. Read all posts at your own risk.
DorothyO (Washington)
Posts: 293
Posted:
Oy, my eyes blurred over reading all these posts, so if I missed some answer I beg your forgiveness. Doesnt't this declaration just mean that the FORM of the CC&R's run for twenty-five years, but the CONTENT can be amended via the proper procedure established within them. Then, after those twenty-five years are up, the CC&R's as they are at that time, will automatically be extended for another ten years, again, still open to amendment according to established procedure. However, if at that twenty-five years deadline, the association wishes to change/amend that caveat, say to a five-year time-frame or hell, just to get rid of them altogether, or any other variation, then the established majority for amendment in place at that time will prevail.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By DorothyO on 09/28/2014 2:17 PM
Oy, my eyes blurred over reading all these posts, so if I missed some answer I beg your forgiveness. Doesnt't this declaration just mean that the FORM of the CC&R's run for twenty-five years, but the CONTENT can be amended via the proper procedure established within them. Then, after those twenty-five years are up, the CC&R's as they are at that time, will automatically be extended for another ten years, again, still open to amendment according to established procedure. However, if at that twenty-five years deadline, the association wishes to change/amend that caveat, say to a five-year time-frame or hell, just to get rid of them altogether, or any other variation, then the established majority for amendment in place at that time will prevail.

What you missed is that, according to Adriana, there is no other language in the document describing how amendments can be made - very unusual. So apparently this paragraph is all there is.

Certainly your interpretation is a worthy one. So are others.

This poorly drafted language is a potential nightmare waiting to happen. You are right if you are saying that it's time to get stuff changed now.

Sikubali jukumu. Read all posts at your own risk.
DorothyO (Washington)
Posts: 293
Posted:
Wow, that there is only one paragraph addressing covenant ammendments, while commendable for its also unusual brevity in typically verbose, overwrought and overwritten like documents, 'tis an association's nightmare, indeed, but an attorney's dream! Bring on the billable hours trying to parse this one out!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Adriana

Quite often docs do not have to say what you can do for you to be able do something. As an example. If your docs say no fining then you cannot fine. If your docs are silent on fining or even vague like say "recover costs" then you could set up a fining schedule/amount via BOD Rules and Regulations as they would not conflict/over ride the docs.

Many try and make docs so specific to allow them to do things that they end up getting in their own way.

I like loosey goosey stuff. That way one can pretty much do as they want to do.
DorothyO (Washington)
Posts: 293
Posted:
Oh yeah, I especially like the, "Well, if your covenants are silent on [insert issue here]. . ." Hell, it's a rodeo then! Alas, reined in by the established "intent" of the WHOLE document, so the fun is short-lived, like so much HOA 'bidness!
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JohnC46 on 09/28/2014 4:33 PM

If your docs are silent on fining or even vague like say "recover costs" then you could set up a fining schedule/amount via BOD Rules and Regulations as they would not conflict/over ride the docs.

However, there are legal cases where the courts have ruled that when the CC&Rs are silent there was "an intent to exclude." Therefore, do not count on an expectation that if the CC&Rs are silent, you make up rules.

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