Re-awakening of HOA

Hello!

I bought a Fannie Mae foreclosure two years ago. It was listed as having no HOA. We did not sign any HOA documents at closing. The community consists of 12 lots with no common areas or private roads.

After 18 months, a neighbor mentioned deed restrictions and I looked up to see what he was talking about. Sure enough, there are deed restrictions in public records and there is an amount to collect at the time of acquisition of the property in the amount of $100.

We have never paid anything, nor have we ever received invoices. It appears the HOA is "sleeping".

Today we receive a letter of Notice of Meeting of the Membership. First time in two years.

How does the whole fact that we didn't acknowledge the deed restrictions or HOA play into the facts?? We seriously did not know about them! Curious if they can come after us for the acquisition fee etc.?

The deed restrictions run with your property and you are subject to them regardless of whether or not you sign anything. If I were you I think the person I'd call first would be your closing attorney with questions regarding that $100. Being a Fannie Mae foreclosure, you may not be subject to that, ask your attorney to be sure, and about any other statute of limitations that may apply. If your deed restriction mentions a mandatory HOA most likely you'll have no choice but to be a member, even if it was inactive when you purchased. Hopefully someone from FL will chime in to help you with FL HOA specific details.

If I were you, before you commit to anything I'd get all the legal details. If you have no common areas or private roads then does your notice or did you neighbor mention dues, if so what they go towards. It is possible that you have deed restriction but no HOA or a HOA but a voluntary one. I'm not familiar with FL but am aware that they have had quite a few legal dispute concerning older HOAs and the FL MRTA law. Seek legal advice things can get complicated, you need an attorney to read through all your documents.

Oh, since your in Florida, you should check to see if MARKETABLE RECORD TITLES TO REAL PROPERTY ACT (aka MRTA) and if those covenants were revitalized or not.

It could be that the Association never revitalized their covenants and now a group wants to change that.

Do your research, gather information and make sure to attend the meeting. However, don't sign anything until you have checked with an attorney on this issue.

Your Title Insurance may be able to tell you if the covenants are still valid or not.

Sorry, Tim our last posts crossed, your last one was along the lines of my train of thought

According to public records, the deed restrictions were created in 2005.

What exactly am I looking for to determine if they are "valid"?

Thanks Tim, that's why I brought up MRTA, guess we think alike

The Realtor might be off the hook, but if Evelyn bought an owner's title insurance policy, that covers her for as long as she owns the property.

The title search is supposed to identify any claim or encumbrance on the property before you purchase it.

Title Insurance covers you if there were any encumbrance on your property that wasn't disclosed. An encumbrance would include deed restrictions.

Now, what the title insurance will do for you in this case, I don't know. That would be within the terms of the policy.

Evelyn, O
One more question, you said your a community consists of 12 lots with no common areas or private roads, do you have a sign maybe and that and the land it sits on is the common area? (I'm just trying to make some sense of it. If they claim to have a membership they must have some purpose in mind? maybe it's a good one you will want to willingly be part of?) I'd go to the meeting listen, gather facts, just don't commit till you have ALL the legal questions answered by a qualified attorney.

Found this language in the deed restrictions:

"No amendment shall be made as the the Rules and Regulations of the Assoc that will in anyway exclude mandatory membership of each lot owner of the subdivision."

So I guess that means I will HAVE to be a member.

Also see if you can find out if there have been any amendments to the restrictions recorded at the deeds office, since 2005 for your subdivision.

So we had our initial organizational meeting last night.

They are talking about charging assessments for shared driveways, which are deeded to 6 of the 12 parcel owners. the driveways have ingress/egress easements on them to allow the neighbor lot to use it. Per the plat the maintenance of the driveways must be shared. They are referring to these driveways now as "common areas" and want to use the assessment fees to pay for the maintenance. That means that whoever owns the driveway and pays taxes on it will no longer have say in who cuts the grass!

Is that legal to just decide a piece of land is now common area??

Good advice here. I see this a lot, probably due to foreclosure crisis fall out. I like the title of this thread, it sounds like the HOA is a sleeping demon to be "reawakened" a quickening in the bowels of hell lol.

The Restrictive Covenants say each lot owner is responsible for maintenance.

The new HOA By Laws state the HOA will maintain these driveways and collect from the parcel owners for the maintenance.

What prevails??

Again, we are only 12 parcels. I am looking at Statute 720.303

Since said maintenance will be required at some point;

what is the problem with the HOA getting it done at a 'volume discount' as opposed to 'every owner for themselves'

resulting in a 'hodge podge' of work performed ?

You joined a common interest community - is it not in the common interest to have the driveways UNIFORMALLY and PROPERLY maintained AT A LOWER COST than individual maintenance ?

Theoretically

HOWEVER:

The CCRs will prevail over the bylaws UNLESS a condominium situation exists.

? what does your attorney say ?