Title transfer of common ground to HOA from dissolved developer

I took over as president of our HOA a year ago and am working to clean up some issues. I realize that to a certain extent the answer to this question depends on state specific law (IL).

The subdivision was developed about 15 years ago. The legally recorded Declaration of Restrictions states that, after 80% of lots sold or 10 years, the HOA shall be established and "the title to all amenities, landscaping, subdivision fences, entrance improvements, easements and subdivision appurtenances shall be conveyed by Developer to the HOA". Due to general disagreements, now resolved, our HOA has only been active for about 4 years. The legal title to the 3 common area parcels is still in the name of the developer's corporation which was legally dissolved a number of years ago. We are unable to locate the two principals using basic internet searches.

Is it necessary to hire an attorney to get this fixed? Can I petition the recorder's office or county court of some kind to get the property re-titled to the HOA since the Declaration document clearly specifies that this should have happened? We only have 33 homes and limited funds for legal counsel.

Melanie,

This is something that almost absolutely will require the services of an attorney as you are trying to acquire title to real estate that is now in someone else's name.

The declaration states an intent to transfer the real estate to the HOA so this might be an action to quiet title. On the other hand, since the real estate has been in the HOA's possession and control for many years, your association might be able to acquire title through adverse possession. Either way requires filing a lawsuit in the court with jurisdiction.

From what I have seen in other quiet title actions, if the owner cannot be located he cannot be served by conventional means. In that case, the court may allow service by publication in a local newspaper or some other alternate means.

Melanie,

Does the assessor levy taxes on these properties? If so, can you track down who is paying the taxes?

If the taxes have not been paid the assessor may have a tax lien and it might be possible to acquire deeds to the properties just by paying the back taxes.

As Larry said, quiet title action will be your best and most cost efficient solution in the long run. Very specific and detailed requirements - so use a lawyer.

Your association needs competent legal counsel (in this case, a real-estate attorney) to sort through this situation.

Applause. Trumpets. Cheers.