HOA dissolved before builder turned it over

Started by CherylB4 • 31 replies • 4560 views

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

⚡ Takes 30 seconds

Already a member? Log in

CherylB4 (Georgia)
Posts: 9

Posted:

I need help. A few homeowners and I are trying to start or reinstate an HOA that was begun by the builder in 2005. The builder went bankrupt in 2008, and the HOA corp was administratively dissolved by the sec of state here in Georgia in 2011. A new builder bought the lots through auction in 2011, and our subdivision is almost complete. We have a poolhouse and pool that went up for auction and was bought by an outside interest, but is now owned by the current builder. The only common property is the entrance road which is being kept up by the current builder and a few homeowners. The homeowner that I talked to that tried to start back the HOA back in 2011 said they were trying to get all the homeowners to approve the HOA, and that the papers weren't filed by the builder, and they found out the papers hadn't been filed so they all stopped paying just before the builder went bankrupt. Our city attorney said we can't force the homeowners who purchased property after the dissolution to join an HOA. We have many homeowners that do want an HOA, and about 15 that don't want one. I don't know if we can reinstate, or have to start a new HOA. We have consulted a lawyer, but he hasn't had time to get back with us. The City Community Director gave us a copy of the covenants she had on file and said all we need to do is elect a Board and get a certain homeowner percentage of approval- she thought it might be 75%- and enforce the covenants we have. She also suggested we get a lwayer, but doing a search I don't come up with a list of lawyers here that know real estate law.
Cheryl

LarryB13 (Arizona)
Posts: 4,099

Posted:

Cheryl:

Real estate law is not a hot specialty like personal injury so a failed internet search is no surprise. Check with your State Bar to see if there are any attorneys with real estate expertise in your area.

Ignore the city attorney's advice until we have more information. His job is to represent the city, not you; his specialty is collecting parking fines, not dabbling in real estate law.

If your subdivision was made subject to a Declaration of Covenants, Conditions, and Restrictions (CC&R's) and if the CC&R's require membership in an HOA then you a ready to move forward.

The CC&R's remain in effect regardless of the original developer's bankruptcy. Even if the current developer acquired the Declarant's rights, his ability to amend the CC&R's will be limited by the terms of the CC&R's themselves. If at least some lots were sold under the original declaration then the current developer may need the cooperation of those owners before making any changes.

If the later developer sold lots with different CC&R's or none at all you may have a real nightmare. If the original CC&R's were properly recorded then they have been effect ever since the first lot was sold. The current developer is bound by the CC&R's just like any other owner.

The requirement to join the HOA also remains in effect even though the developer dropped the ball on forming it. Anyone willing to step up to the plate can file the Articles of Incorporation. Usually a small group of members may call for a meeting to elect board members.

There are a lot of technicalities to review and I would strongly suggest hiring a qualified attorney.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Cheryl

Good advice from Larry, especially ignore the City Attorney in this matter.

My suggestion would be to gather a few neighbors interested in having an HOA and pool your money to hire an attorney to review and advise.

Hope this helps.

CherylB4 (Georgia)
Posts: 9

Posted:

Thanks. We do have a Declaration of Protective Covenants, and the Restrictions are a part of our deed records. I do believe the current builder has sold lots without the CC& R's, but am not sure. The one neighbor keeps saying the covenants weren't filed at the County level. But I will do as you advise, and talk to the others who were interested. Thanks so much for your assistance.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 10:33 AM

I do believe the current builder has sold lots without the CC& R's, but am not sure. The one neighbor keeps saying the covenants weren't filed at the County level.

Well this can be verified by contacting the court house or county recorders office.

Simply tell them what you are looking for (all lots within the development that have deed restrictions and what those restrictions are) and they can help you locate that info.

If it were me, I'd start there.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Keep in mind that administratively dissolving the corporation known as HOA, Inc. does not dissolve the Association. The Association may not be active (because nobody is running it) but the creation of an Association would come from the CC&Rs.

Incorporating the Association is always a good idea, as it provides benefits to the members and to the Association. Once you have an active Association, the Board may be able to reactivate the previous corporation or they can simply reincorporate the Association.

CherylB4 (Georgia)
Posts: 9

Posted:

ok this is great! Although the original covenants as we read them are very restrictive and we thought we might want to modify them if we could.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By TimB4 on 12/04/2014 10:43 AM

Posted By CherylB4 on 12/04/2014 10:33 AM
I do believe the current builder has sold lots without the CC& R's, but am not sure. The one neighbor keeps saying the covenants weren't filed at the County level.

Well this can be verified by contacting the court house or county recorders office.

Cheryl,

Developers have several ways of recording declarations.

The preferred method is to record a declaration covering all lots and incorporating the declaration by reference by citing it on each deed. If the developer did this then your deed should contain language similar to "subject to covenants, conditions, and restrictions as recorded on page 1234 of book 5678, records of XYZ county."

The less-preferred method is to attach a copy of the declaration to each deed as an exhibit. In this case your deed will have language along the lines of "subject to covenants, conditions, and restrictions in Exhibit A." This is less preferred because each deed could have different language or it could have no restrictions at all; it's just a recipe for chaos.

Start by looking at your own deed. If there is a reference to recorded restrictions then that is where you need to start at the recorder's office. If the reference is to an exhibit then you will need to examine every deed to see if they match yours.

CherylB4 (Georgia)
Posts: 9

Posted:

Thanks Larry,

Yes, I am looking at my deed. It is a Special Warranty Deed, and it does have a one-line sentence that says "Subject to restrictive covenants and general utility easements of record." There are two pages to the deed, then the third page is "Exhibit A" which just describes the legal description of the parcel of land, and does give recording information. So I will start there.

JanetB2 (Colorado)
Posts: 4,219

Posted:

You need to determine at County Records whether any CCR's were properly recorded BEFORE everyone purchased. From statements here it is sounding like other owners already maybe checked and found were not filed as they had been led to believe. I disagree with others who stated to ignore the City Attorney ... Generally most city attorneys are very knowledgeable in real estate / property laws. And I would agree with the attorney you cannot force individuals to have docs attached if not done prior to their purchase and properly disclosed. First step is determine what is attached to your title, if you have CCR attached then next look at most recent sold property to see if it is similar. This will compare the two developers docs filed when properties were sold.

EmmaH1
Posts: 674

Posted:

CherylB,

In doing a lot of legal research on the CAI website (they post new cases every month or so in their newsletters) and other sites that give you unbiased access to actual court cases and actual transcripts, I have come across cases similar to what you describe.

Cases like yours I find very interesting I have read about all sorts of outcomes/end results. You need the advice of a really good attorney (specializing in contract law would be my advice). Although, that City Attorneys opinion seemed spot on to me.

Many cases I've read through ended up with some homes being subject to a HOA and some not, within the same neighborhood (in some cases the non-HOA homes were scattered throughout the neighborhood, which made things very different, since some had to follow restrictions and the home next door was exempt.)

It will all depend on the details of your deeds etc;,

Good luck and I hope you keep us posted on how things turn out,

Emma

EmmaH1
Posts: 674

Posted:

Cheryl,

One more thing, in my opinion the City Lawyer would have not reason to lie to you about not being able to force those homeowners into a HOA that had been legally dissolved or not properly recorded at the time of their purchase. Actually most cities like to pass the responsibilities of things such as stormwater drainage and other responsibilities for common areas off to HOAs. That would be one less thing the city is responsible for---works out good for them.

EmmaH1
Posts: 674

Posted:

Also see if your deed mentions forming a HOA, and if it does, does it uses the word voluntary or mandatory?

Some neighborhoods have restrictions and covenants and are not subject to a HOA. In most states there must be a mention of forming a HOA or the ability to form one with a vote of owners. Look for some sort or Language of that sort.

Good Luck

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 4:37 AM
I need help. A few homeowners and I are trying to start or reinstate an HOA that was begun by the builder in 2005. The builder went bankrupt in 2008, and the HOA corp was administratively dissolved by the sec of state here in Georgia in 2011. A new builder bought the lots through auction in 2011, and our subdivision is almost complete. We have a poolhouse and pool that went up for auction and was bought by an outside interest, but is now owned by the current builder. The only common property is the entrance road which is being kept up by the current builder and a few homeowners. The homeowner that I talked to that tried to start back the HOA back in 2011 said they were trying to get all the homeowners to approve the HOA, and that the papers weren't filed by the builder, and they found out the papers hadn't been filed so they all stopped paying just before the builder went bankrupt. Our city attorney said we can't force the homeowners who purchased property after the dissolution to join an HOA. We have many homeowners that do want an HOA, and about 15 that don't want one. I don't know if we can reinstate, or have to start a new HOA. We have consulted a lawyer, but he hasn't had time to get back with us. The City Community Director gave us a copy of the covenants she had on file and said all we need to do is elect a Board and get a certain homeowner percentage of approval- she thought it might be 75%- and enforce the covenants we have. She also suggested we get a lwayer, but doing a search I don't come up with a list of lawyers here that know real estate law.
Cheryl

Cheryl

I think you've got some apples and oranges mixed in here.

Corporations are registered with the Dept of State. Your registration was terminated. Usually easy to reinstate or reincorporate. Registration does not need to include names of all of the members. So for purposes of getting a corporate entity back in place, don't have to worry about which houses are in and which houses could be out.

Deeds and Deed Restrictions (CC&Rs) are recorded at the Recorder of Deeds. Were your CC&Rs ever filed? In many states, a plat is filed with the CC&Rs. The plat is a map that shows all of the land & lots affected by the CC&Rs. Was a plat ever filed?

If the pool and the pool house are owned by the current builder, then there should be a deed at the Recorder of Deeds showing that canveyance (with the current builder as Grantee). However, things could be quite a bit more complicated if the pool and pool house were also recorded as part of the plat.

It is unclear to me what the role of your City Community Director is. Is that person affiliated in some way with the Recorder of Deeds office? What is the exact title of the doc she/he gave you and does it have a Book and Page number stamped on it?

A good starting place could be having someone do a title search on the HOA, the pool and pool house, and any other common space in the community. There are an abundance of title search companies out there.

Unless GA requires that an HOA be incorporated, the lack of a corporate entity does not eliminate the possibility that you do have a HOA.

Your description of what the City Attorney said should not be taken at face value. First, you should do some research and get a better understanding of everything that was filed with the Recorder of Deeds (rather than the Department of State).

Sikubali jukumu. Read all posts at your own risk.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 4:37 AM

Our city attorney said we can't force the homeowners who purchased property after the [administrative] dissolution to join an HOA.

Rubbish!

If the CC&R's required membership in an association that requirement does not go away simply because the state dissolved the corporation. The state corporation agency has no authority to amend your CC&R's. Neither does the city, for that matter.

If you check your state statutes you should find that administrative dissolution does not terminate the corporation; it merely prevents it from doing business as usual until it is reinstated. Administrative dissolution is not fatal to a corporation and can be reversed, usually by filing updated documents and paying fees.

I have considerable experience dealing with government lawyers and found that they are generally neither the best nor the brightest. The top tier of any law school class gets snapped up by large law firms. The bottom tier is lucky to find work in a collection agency. Government agencies never pay the big bucks to attract the top tier but there is normally sufficient interest in the steady employment offered by public service to attract the middle tier. These are basically attorneys who found they could just get by doing mediocre work in law school and continue to do so on the job for whatever government agency they end up at.

Let the city attorney worry about library fines and parking tickets. Find your own attorney for better advice about your HOA.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 1:55 PM

I am looking at my deed. It is a Special Warranty Deed, and it does have a one-line sentence that says "Subject to restrictive covenants and general utility easements of record."

The phrase "Subject to restrictive covenants . . . of record" does not give me that warm fuzzy feeling. It's sort of like saying, "Maybe there are covenants and maybe there aren't and it's up to you to find out because I am not going tell you."

That is not to say that there are no recorded covenants, only that it would be more definite if the deed stated where to find them.

Have you checked your title report? It ought to contain the restrictions the title insurer was able to find and should tell you where they found them.

JanetB2 (Colorado)
Posts: 4,219

Posted:

LOL ... Excellent LarryB13 ... The title insurance docs should list all encumbrances on the property. Funny how I forgot about that myself.

EmmaH1
Posts: 674

Posted:

One other thing to consider is that just because someone (declarant, new builder or group of owners) at some point in time registered a corporation with the Secretary of State and named it _____ _____ Inc.,
does not in itself determine anything as far as whether a legal mandatory HOA was ever in existence.

Anyone can go down and incorporate and create a new corporation/association/entity. They may name it what they wish. It can be dissolved and reinstated. The key is was it ever a legal mandatory HOA? Was it a established according to legal documents filed at the register of deeds and does it run with the titles of all the property within the subdivision?

If the original CC&Rs are recorded properly and say a mandatory HOA is to be formed, and that all must be members or a HOA may be formed by a percentage of lot owners in the future, then a mandatory HOA can be formed or revived.

This should not be very hard for you to find out. If everything is there in black and white yours may be a simple problem to solve after all.

But If not then it could get complicated/tricky.

BobD4 (up north)
Posts: 1,002

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 4:37 AM

. . . We have a poolhouse and pool that went up for auction and was bought by an outside interest, but is now owned by the current builder. The only common property is the entrance road which is being kept up by the current builder and a few homeowners. . . ."

Good advice above, but also conversely take a realistic look at the online experiences of thousands of owners who have unfortunately found the HOA/POA condo universes to be negative, riddled with incorrigible incompetence and ignorant oppression. Start with www.communityassociations.net - not anti HOA

Some work well, but some are basically almost useless for the big stuff except when illegally trampling individual owners for the small stuff.

There are options to also consider. Some CCR scenarios have no HOA platform at all, allowing the criss-crossing promises to be judicially enforced owner against owner. You may need none of that. Maybe the private pool can be funded by voluntary user membership fees and the entrance transferred to the city with a local property surcharge. Look realistically at the options and why other owners did not support the concept before . . .

EmmaH1
Posts: 674

Posted:

Of course you can always decide to register and form a HOA even in the event that a few homeowners are legally able to not be a part a HOA you form. That has happened before, not common but has occurred.

I hope you keep us posted on what happens in your situation and what you uncover.

good luck, hope it all turns out well in the end.

EmmaH1
Posts: 674

Posted:

The homeowner that I talked to that tried to start back the HOA back in 2011 said they were trying to get all the homeowners to approve the HOA, and that the papers weren't filed by the builder,

Why were the homeowners back in 2011 trying to get ALL the homeowners to approve the HOA back then? Did someone tell them they needed ALL homeowners approval to form a HOA? why did they make this assumption? why did they give up in 2011?

EmmaH1
Posts: 674

Posted:

The above question was for Cheryl (the first sentence is from her original post)

BobD4 (up north)
Posts: 1,002

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 4:37 AM
I need help. . . .Our city attorney said we can't force the homeowners who purchased property after the dissolution to join an HOA. We have many homeowners that do want an HOA, and about 15 that don't want one. . . Cheryl

Respectfully, please take a hard look at whether or not a full blown HOA - or any sort of HOA at all - is in the neighbourhood's longterm best interest.

After more than 25 years our tenancy in common co-ownership large lakefront - with elaborate multiple docks & platforms and private roads - has been kept in good shape & generally safe NOT by a HOA but by co-owners acting collegially. A voluntary HOA also evolved over several decades AFTER initial subdivision & basic infrastructure construction, & it only infrequently goes on an illegal binge.

But the INHERENT danger even here can be seen when incompetent retirors start getting into their heads that they have zoning and rule-making authority here.

And paradoxically this voluntary HOA was as useless as the lake association when I and others in 2009-2010 had to fight (on that same lake) an incredible, open-ended zoning approval for a new "hybrid" style mixed CECC common elements condominium model with conventional CCRs added.

Do not turn your back on the bull in the stall. Shouldn't that bull be able to justify its existence some way ? It didn't have the skillsets nor corrigibility here.

ValK2 (Tennessee)
Posts: 65

Posted:

Whatever the methodology by which you go about establishing an HOA, assuming that is what the community wishes, know that there will be a certain number of homeowners who will object/not join/argue that they are grandfathered in under some "there was no HOA when I bought here" clause which may or may not even exist.

I live in a wonderful community with an HOA. The original developer granted exemption to the original buyers, or perhaps there was no HOA when they bought. The developer subsequently organized a legal HOA, but the original purchasers were granted (tacitly) an exemption.

Then, the developer goes bust, and ultimately the HOA is taken over by the residents, even though "not all of the lots were sold".

Fast forward a few years, and someone decides that we need new Covenants. But the old covenants run for 25 years, so are the new covenants even applicable? Maybe.

My point is we have owners who don't belong because they are original purchasers and believe they are exempt; we have buyers who bought from original purchasers who "think/know" they are exempt because the original buyers was exempt. We have people who pay dues, but don't belong. And we have people who simply don't belong (Along with, of course, folks who pay their dues and who belong).

Is it a nightmare? Yes. BUT, through strong leadership, regular communication, evenhanded enforcement, and an unwavering objective to make the community a cohesive HOA (part of the problem is that we are in the south where HOA's are seen as "trampling on my rights". Local folks have no idea what a demanding HOA will do to you if you leave your garage door open or your trash can by the street overnight, so they squawk over the slightest suggestion that they comply with realistic covenants!)we are making progress. We have had to educate realtors who are selling in here; we have had to talk with new purchasers who "didn't know they were buying into an HOA community"; and we have had to engage our attorney to go after some of the dead beats who have no exclusions but "just decided they weren't going to join".

Steady persuasion; active involvement by more and more of the residents; some legal muscle; and demonstration that with a strong HOA we are all better off has pulled the various factions together. As homes turn over, the HOA is all over the purchaser to get them involved, and generally all are cooperative once they are informed.

Good luck. It can be done. It just takes time, and patience. We have nearly 90% compliance/participation now. There is no silver bullet.

JamesO6 (Florida)
Posts: 170

Posted:

Quote:

I'm In a in a HOA community, But not in a HOA. our original developer purchased lands and started a development, long came a big named developer bought up lands around his community, now seems once the small developer got wind of it and decided to not put any deed restricted on the owners agreements except where he purchased the property or any form of purchasing agreement that was ever signed by any lot owners in our section that a HOA existed. then the builder apparently decided to file all 3 forms of the legal process that could create a Valid HOA in our section, You can't incorporate, recorded a deed restriction and set and then approve bylaws before they sell the first lot.

If it takes 75% lot approval to dismantle a HOA and 100% lot sign up to incorporate one, not even if 99% of the lots wants to join a HOA, they can't force that one lot to join it or maybe even to incorporate it. Now there's all kinds of wiggle room, did the original developer transfer all the lots over to the new developer and record it transferring the HOA to them? buying lots in a bankruptcy doubt if that accomplished that problem. that original developer had to transfer ownership of the HOA to the new builder. hence our section developer did not do that.

I seriously doubt if 75% of community by law can force the other 25% into HOA by brute force of the will of the 75%., sure they could do what this HOA tried twice through intimidation with legal letters from lawyers, but if those people knows that it's all posturing and bluffing's by carefully drafted firm letter, they always could say in a letter sneak this into it like our HOA tried to do to get us to join the sneaky way "By Voluntary joining your HOA...blah blah blah and sign here. you could get a few to fall for it, but then you have people like me and my section that just called their bluffs. Sending a HOA bill for HOA services and a stern letter is not a smart way to get people to join your HOA. There's a Federal Crime thingie called Mail Fraud, sending a illegal billing for a product or services your not signed up for., then there's wire fraud if any gullible person at first fell for it and paid the HOA dues, due to that type of worded letter they've received and the others finds out.

So their might be say like our community has 2 different HOA names but just 1 word difference between the two, Just because 1 developer has an active one, doesn't mean they can incorporate or try to force the other section/s into their established HOA, I doubt if they can even get 1 of our lot owner into their if they even want too, due to what if the current section without a HOA active with a HOA deed restriction decides to start one up later, they now can't due to that one screw ball lot owner that's now is in another HOA, yet legally their in there's not the one they joined first.

It's much easier to let things be, could cost thousands just doing basic research to incorporate a HOA, a developer has the assets to do the research, if a couple of the community are looking into starting a HOA and they end up loosing, all those other lot owners are not legally responsible for all those lawyers fees and document experts billings and you might be footing the bill entirely for a dead end adventure.

I don't know how much that last adventure of our community HOA legal billings was but it sure had to be 1,000x's then their last adventure expeditions costs.

JamesO6 (Florida)
Posts: 170

Posted:

I can see having a HOA in large costs houses like 500k and over, but never for a five and dime community of houses say 200k and under.

That makes no sense at all, our section without a HOA is a pristine, go over to that HOA sections and it's terrible to see, everything is the same artistically there is no difference between the lots all like a cheap line production same old same old looks.

I can see a higher end community having HOA's in them that stops people from bringing trailers and extended family's living in them around million dollar homes because someone won the lottery.

Realistically HOA houses under $200k are just saving the city tax dollars, and those lot owner tax payers are now paying twice for the same community and some when it comes time for major repairs which in a normal community the city fix's it. Love to see a $100k or just over or double the value HOA community with a swimming pool and a community center, basketball court, tennis courts, yet that's impossibility due to the cost and operation of it and all the liability insurance costs.

EmmaH1
Posts: 674

Posted:

Quote:

Posted By JamesO6 on 12/05/2014 8:41 PM
I can see having a HOA in large costs houses like 500k and over, but never for a five and dime community of houses say 200k and under.

That makes no sense at all, our section without a HOA is a pristine, go over to that HOA sections and it's terrible to see, everything is the same artistically there is no difference between the lots all like a cheap line production same old same old looks.

I can see a higher end community having HOA's in them that stops people from bringing trailers and extended family's living in them around million dollar homes because someone won the lottery.

Realistically HOA houses under $200k are just saving the city tax dollars, and those lot owner tax payers are now paying twice for the same community and some when it comes time for major repairs which in a normal community the city fix's it. Love to see a $100k or just over or double the value HOA community with a swimming pool and a community center, basketball court, tennis courts, yet that's impossibility due to the cost and operation of it and all the liability insurance costs.

James,

I do agree with a lot of what you say as far as what I see in the area in which I live. It seems like lots of times the homes with strict HOAs look a lot like stepford homes, sterile, no personality, less homeowner pride. It seems like the people there are so miserable that they just stick to the bear minimum of upkeep to not get fined and don't go the extra mile to add charm to their homes.

I am not against having some restrictions to keep the neighborhood from looking like a dump but some HOAs/BODs go way too far. Even if their original intent was good and pure, resentment and hostility on both sides set in, when the wrong group of people get positions of power and it spirals (fast). (Then neighborhoods turn into war zones, personal vendettas and attacks----not good for anyone and not good for your homes values).

Balance is the key and is hard to accomplish. I also think that the CC&Rs should not be changed or attempted to be changed or allowed to be changed "drastically" by anyone. (owners and developers should not stray far from the original theme or plan,, when they do problems arise)

I think the ultimately the "Character of the Community" as it was intended to be should be preserved.

*I agree with your point about saving the city taxes dollars too, many people don't even consider that point.

EmmaH1
Posts: 674

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 11:47 AM
ok this is great! Although the original covenants as we read them are very restrictive and we thought we might want to modify them if we could.

Cheryl,

It seems like your intentions are good and you really do want what is best for everyone in your communtity. Seems like you received a lot of "food for thought" within this thread! I hope it was useful to you in some way. Hopefully you stay with us or come back and let everyone know what facts you do uncover, because its all in those particular details what you can or cannot do moving forward.

Good luck,
Emma

EmmaH1
Posts: 674

Posted:

Quote:

Posted By CherylB4 on 12/04/2014 11:47 AM
ok this is great! Although the original covenants as we read them are very restrictive and we thought we might want to modify them if we could.

In your case, since you have a lot of owners living there for a long time with no HOA in effect, you would be smart not to try impose very strict restrictions on current homeowners.

CherylB4 (Georgia)
Posts: 9

Posted:

Thanks Emma,
I will get back to you on what we find out, but with the holiday right here I and the others helping me are busy. Probably after the first of the year. Thanks again for all this input it is very helpful.

CherylB4 (Georgia)
Posts: 9

Posted:

Hi Emma,

The holidays are over and I am back to work figuring out this HOA stuff. Well from doing some research I can find no recorded covenants. I had a guy helping from an HOA management company from another community, and he could find no recordation either. So even though the declarant (original builder) had formed a corp for our HOA, it was dissolved administratively for non-filing of the paperwork in 2011, and he went bankrupt in 2009. The new builder bought the remaining lots in 2011, and didn't file the covenants either. Now they have completed the other 50% of the homes, which they told most of the buyers that a HOA was in the process of being formed. So none of the homeowners are legally obligated to join. If only the covenants had been recorded, the HOA would have run with the property, as I can see from my deed records. I looked up the deeds from newer owners who purchased newly built homes in the last year, and they have the same deed records that I have, but the covenants were not recorded.

Now we are trying to decide if we can and should form a voluntary HOA with those interested, and hope that more homeowners will join over time, and if we can make the new covenants binding to any new homeowner that buys any home in our subdivision in the future.

MarkM31 (Washington)
Posts: 556

Posted:

Quote:

Posted By CherylB4 on 01/25/2015 5:24 PM
Hi Emma,
Now we are trying to decide if we can and should form a voluntary HOA with those interested, and hope that more homeowners will join over time, and if we can make the new covenants binding to any new homeowner that buys any home in our subdivision in the future.

You'll never be able to attach it to a property unless the present owners of that property do so willingly. So future owners would only be bound to what previous individual owners did.

🎯 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