💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

TimB4 (Tennessee)
Posts: 21,062
Posted:
Emma,

In many threads you have made it clear that a group of homeowners got together, created a corporation and claims authority your Association has.

In rereading those many posts, I have some questions to help clarify the issue for me.

1) Was control of the Association ever turned over to the membership (either formally or simply by the Declarant no longer having control of votes to say who sat on the Associations Board)?

2) Prior to incorporation, was your Association being ran by a Board of Directors?

3) If the answer to 2 is yes, were those the individuals who created the corporation?

4) If the answer to 2 is yes, regardless of who created the corporation, are/were those individuals considered to be the corporations board of Directors?

EmmaH1
Posts: 674
Posted:

Tim,

I do realize your trying to help me and appreciate it. But their are so many if's involved and I haven't decided what it any actions I will take or not take yet. Some of what I eventually decide wil depend on the investor that may (or may not) have legal declarant rights. He may decide that he wants to get rid of this pain in the neck property and pass it on to someone else? He may decide to fight them? He may win if he does? He may lose? I am not sure what his actions will yet, so my course of action may change depending on his actions. He may fix some of this by exercising his rights. Investor has a full declarant rights assigned to him at the register of deeds, handed over to him by the original declarant. He is not a builder. He is an investor, rumor was he was going to let other builders come in and build on his 6 lots, he let one builder advertise on MLS for a month--no bites listing removed.

Now in my opinion the investor would not really care if the neighborhood was running the association and I don't think he would bother anyone. I think if this BOD would plau nice and let him do his thing, not bother him, they would be very smart. But instead they are already trying to dominate him and harass him by demanding he remove the declarant right from the register of deeds, saying they aren't legal and he has no power. (they said their attorney sent him a letter, I did not see it of course.) I spoke to a rep of his they are mad and are not going to roll over and hand all control over, they want protect their investment too. After all he did invest money here. The investors attorney read the CC&RS and read the assignment of declarant rights and says they are legal. He says the HOA has no power. (I think they would be fine with minimal involvement following the arch. guidelines in place and getting builders in and be gone.

The BOD wants to control everything make the investor and builders come ask them permission for everything, make them follow new CC&Rs they are creating. They are not going to agree to that. They bought those lots with a set of CC&Rs to follow they are not going to let this BOD run their business. The BOD is overstepping their authority again and their hoa attorney is erking them on. It is not a wise decision it could cost a LOT of money. They are not looking at the big picture.

EmmaH1
Posts: 674
Posted:

1) No. Control was never turned over

2) No. There was no BOD, before they created their own new HOA
EmmaH1
Posts: 674
Posted:
Tim the rest just gets to complicated, layer after layer.

Like you said, either courts clarify or compromise those are the options.

But as far as the water feature the owners have always been legally responsible whether they formed a legal association or not for the upkeep. The original declarant or new declarant never was responsible for its upkeep. I never said the declarant was the association. What I do say is I question the legal authority the HOA INC has over my personal property as far as changing things and making me responsible for paying for their legal battles with this new declarant.

Where I live their are neighborhoods with common areas and they do not have a HOA incorporated or not incorporated. Many of them. They just all get together and share expenses for maintenance, insurance and utilities, taxes that's it some of them have restrictions that run with the land also. You know you can have restrictions, covenants and common area and have NO HOA? It is not against the law here.
EmmaH1
Posts: 674
Posted:
I am mot saying we should do that, just that its done.
EmmaH1
Posts: 674
Posted:

Tim, earlier on the other post, I had simply commented on them not fixing the entrance sign to JohnC, that was all. I would not serve papers on them now. I have not voted at their meetings either because then as you said it would be confirming that I agree to their claim of authority and their new CC&Rs. I am not willing to do that.

It is funny though because they had criticized the original declarant for negligence, even though they did not pay him assessments and he was paying all the utilities in his name and had the water feature working. He paid those bills when he did not have to if they were not paying him. And now look what they are not doing its very hypocritical. (Not saying I can do anything about it at this point in time.)
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Emma

I am of the belief that once your association gets "legally squared away" you are still going to have issues one way or another.

Hope I am wrong.
CyrstalB (Maryland)
Posts: 457
Posted:
Quote:
Posted By JohnC46 on 11/27/2014 10:10 PM
Emma

I am of the belief that once your association gets "legally squared away" you are still going to have issues one way or another.

Hope I am wrong.

ditto that, we have seen this drama played out before here and as eloquent and polite as the OP may appear to be, their end goal is the same and you cannot change their views or anyone else.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Emma,

Thanks for the reply.

I also agree with John.
EmmaH1
Posts: 674
Posted:
I completely agree with John's statement also.

That is why I am trying to prepare and educated myself so that If I and like-minded neighbors decide to be on the BOD we will have a plan in mind on how to do things in correct and fair manner. Change things from the inside. (And also even if I'm just a member keep the currant BOD following proper procedure)

That is why I a have been TRYING to post questions and comments that did/do not involving and dredging up any of my underlying and unsettled legal issues.

Tim actually ASKED these question of me. (remember?)

My post was about the water feature being fixed and it being the responsibility of the HOA. That post did not involve my personal history. Let's just say from this point forward that they are the official, real HOA. It does me know good to argue here about that. (I would not even argue that anyway in court anyway--would not be worth it. I would only dispute in court them trying to impose and enforce a more restrictive covenant on my private property which is my most important issue, I'll let the rest take its course.)

P.S. Tim, one more thing, my CC&Rs also state that the Declarant MAY at ANY point in time deed common area over. Who owns the common area has nothing to do with who has Declarant rights in my case. The declarant could keep deed and we'd still be responsible or he could pass deed and still hang on to his declarant rights it's up to the declarant. It is not up to us or the HOA. In my CC&Rs who owns the common area has no bearing on who is responsible to maintain and repair entrance.

EmmaH1
Posts: 674
Posted:
Good Grief!
TimB4 (Tennessee)
Posts: 21,062
Posted:
Emma,

I wish you luck.
EmmaH1
Posts: 674
Posted:
When I post here, I'll ask questions from now on that accept the fact that I have a recognized HOA established.

That was what I was trying to do look for things to help in the future. (I do realize you were trying to help as always Tim, thank you for that.
EmmaH1
Posts: 674
Posted:
CrystalB,

First of all, thanks for the compliment (I think..lol).

As far as your statement "their end goal is the same" respectfully you do not know MY end goal even if you "think" you do.

One of my goals is not to have a BOD generalize about members, to listen to them as individuals. Not as "they" or "them". Not to encourage that us against them mentality. Also to have/be a director that is not condescending towards members, when they do ask questions of the BOD.

Maybe I am the one that wants to change some BODs views, on how they should treat members.

Thank for your comment though
JohnB26 (South Carolina)
Posts: 1,001
Posted:
The BOD's only function is to direct the operation of the corporation.

If y'all own common elements (at least the engineered storm water retention/management system) then y'all had better be incorporated to shield from personal liability in the event of a lost suit.

Y'all need to 'thank the creator' for said corporation.

I am done with this topic.
EmmaH1
Posts: 674
Posted:
ME TOOO!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Emma

I think you have to ask yourself if you can you live/function in an association which by its nature, operates for/under the greater good of all versus for individual liberties.

Let us assume your Declarant comes forward and properly/legally takes charge. He alone can change Covenants, Bylaws, etc. as he desires to. Can you handle this?

Let us assume the Declarant properly transitions to owner control. Your fellow owners might well elect those you presently have issues with and they will be in charge. Can you handle this?

Earlier you said that only one other person thought as you did and that person since moved away. Unless you can gather allies and swing control to your faction/thinking, I am sorry to say but I believe you may never be happy there.

EmmaH1
Posts: 674
Posted:
JohnC,

1. Yes that is my desire. I believe it should be a "Balance" of individual liberties and common good not one vs. the other.

2. Yes can handle it either way it goes. Neither he nor the BOD can decide not to follow SC LAW, Contract Law and Non Profit Law. (I actually in my case would be a lot less fearful of him being unfair if in control. What the BOD here is doing or attempting to do is very personal agenda driven/ control driven. They ignore their own violations and have added personal vendettas where they don't belong.

3. Yes I can accept it (Doubt it though). If it happens I will continue to make sure that they conduct business in a fair and legal manner. (something not happening now)

4. Earlier I said only one person who thought like me was willing to "accept/take on the role as President" and had the business skills required. (He has run his own non-profit for 3 years since retiring from the US Marines.) I already have some allies they are a little more quiet and timid and afraid to take charge and confront this problem head on at the moment. (The neighbor that had to move away was a leader type personality he was very confident and fair---I hated to see him leave.)

Others here are NOT HAPPY with the current BOD and how things are being run (although they do have a little "clique/alliance formed". Some others simply have not education about HOA business at all so they are clueless in amending and bylaws and any of that stuff therefore easy to take advantage of.

Like I said we have 7 more homes to be built and 7 more personalities to add to the mix. So I must have patience. The tables could turn things could change at any point without me doing a thing.

It should be interesting to see how things play out. One thing for sure it won't be happening overnight!
EmmaH1
Posts: 674
Posted:
actually 8 more homes to be built, so 8 new personalities to be added to the mix, lots of change in the neighborhood attitude could happen just the addition of those new homeowners.

EmmaH1
Posts: 674
Posted:
John,

to clarify futher:

-6 lots owned by investor

-1 lot owned by local custom builder

-1 lot owned by family who had leased the model home for 3 years in our development. They purchased the empty lot next to the model home from the original declarant. Had planned on building their dream home here. They are a nice young family, hard workers. They have been so picked and bullied by this BOD over the last year (won't get into those details) that they have decided to not build here at all. They are selling their lot. (They just want to recover their money and get the from here. I am friends with them and keep in touch.)
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Emma

When was the first home built? Is there a problem selling the remaining lots? Based on the picture you have portrayed of the association, I would not consider purchasing a lot.

EmmaH1
Posts: 674
Posted:
JohnC,

My home was built 2 years ago we built it. (We reserved it before we sold our home back in MA)

It all along had been a steady but slow moving as far as selling homes here. This was the original Declarants first Subdivision by himself--no big pocketed business partner involved. He had been a builder for years but only built a few custom homes per year. He also had other businesses, cabinet making, motorcycle shop. He bit off more than he could chew I think.

I also would not consider purchasing a lot at this point in time either LOL.

Everyone who comes into the neighborhood comments on what a nice neighborhood is seems to be, not cookie cutter. The neighborhood is not in straight rows has more of a natural look. It has pluses for a buyer not looking for the tract. builder homes. Nothing offensive is built here its tasteful, all different plans. But they are not not million dollar homes either we are middle class. Our home is brick but the others are a mix of stone and siding.

The lots are not even being advertised now on the MLS they have are just sitting there. So no one is actively marketing them either. The lots will eventually sell if they are put on the market. (I guess the investor doesn't need the money, must be nice, LOL).
EmmaH1
Posts: 674
Posted:
plus John no one buying here will know how bad the association is until they are all moved in----poor unsuspecting victims....LOL. (no idea what they're getting into)

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here