TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
We have all read, or read about, Associations and documents that create more problems then are addressed. Well I just learned of one that is different (at least for me) and thought I would share.
A builder built a development that has 5 phases. When starting phase 1, the builder properly records the governing documents. When starting phase 2,3 & 4, he records those same documents (doesn't reference the initial document, just rerecords it for each phase). In phase 5, the builder did the same thing but in this document, he changed a covenant (minor change about paint colors).
When this change was found out, the Association (which had been turned over to the members) sought a legal opinion to determine if that change affected everyone. What the attorney found out was, because the developer didn't reference the initial set of documents, each phase has it's own set of CC&Rs. Therefore, in order to make an amendment to the CC&Rs you need to vote for and amend 5 different sets of CC&Rs. It's possible that your phase may adopt the change and the other phases won't.
Not so different you may say. Well, when I've seen something like this in the past, I've always seen each phase be a sub-association to a master association. However, because of the way the builder did this, it's not set up that way. It's one Association with 5 sets of CC&Rs.
Just thought I would share.
A builder built a development that has 5 phases. When starting phase 1, the builder properly records the governing documents. When starting phase 2,3 & 4, he records those same documents (doesn't reference the initial document, just rerecords it for each phase). In phase 5, the builder did the same thing but in this document, he changed a covenant (minor change about paint colors).
When this change was found out, the Association (which had been turned over to the members) sought a legal opinion to determine if that change affected everyone. What the attorney found out was, because the developer didn't reference the initial set of documents, each phase has it's own set of CC&Rs. Therefore, in order to make an amendment to the CC&Rs you need to vote for and amend 5 different sets of CC&Rs. It's possible that your phase may adopt the change and the other phases won't.
Not so different you may say. Well, when I've seen something like this in the past, I've always seen each phase be a sub-association to a master association. However, because of the way the builder did this, it's not set up that way. It's one Association with 5 sets of CC&Rs.
Just thought I would share.