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StacieZ (North Carolina)
Posts: 3
Posted:
The Owners Association that I currently serve on the Board in North Carolina for is amending the CCRs. The Declarant/Developer has relinquished control to the Owners Association but now what do we do with the "Declarant" definition? Is it legal to say "Declarant" shall mean and refer to XXXXX Owners Association of Catawba, Inc., its successors and assigns." ? This way we do not have to strike the word Declarant throughout the entire document or is there a specific way it is to be handled? Thank you in advance for any suggestions, feedback.
KerryL1 (California)
Posts: 14,550
Posted:
Welcome to HOATalk, Stacie! We lived in Charlotte once upon a time and my spouse worked in Gastonia.

How many homes in your HOA? How many on your Board?

Generally, when the declarant no longer controls your HOA, you delete the language of "declarant" and insert the language of "the Association" (unless some other word is used in NC). I do no think you add: "or successors or assigns," but I might be wrong.

Exceptions are cases where the declarant still might have a voice. In our high rise, for instance, the declarant could still have a voice in architectural change approvals for 10 years after turnover to our HOA (though he never exercised it). In some cases, the declarant has the right in the CC&Rs to develop more of the land in the future. Or post signs to market existing homes he built that haven't sold.

I think others will reply who actually have experience with what you're asking.

Our HOA is pretty complicated so we'll get an attorney to help us when we amend our CC&Rs. Has your board considered that?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Stacie

We debated changing our docs to delete references to the Declarant (Class A, Class B, etc.). We decided that the cost (about $2,500 if I recall) was not warranted as we felt most can "read around/thru" the references to such. It can be cumbersome and beyond others to do such, but that is the approach we have taken.

StacieZ (North Carolina)
Posts: 3
Posted:
Thanks so much for the feedback Kerry, it is much appreciated. We are a very small community of 34 homes on Lake Norman with 5 Board Members which are all homeowners in our Subdivision. The last vacant lot was sold over 15 years ago. We are definitely planning on using our attorney but the Board was just reviewing the suggested changes that our Covenant Review Committee put together for us and they were not sure how to handle it so I just thought I would help them research it.
StacieZ (North Carolina)
Posts: 3
Posted:
Hi John. If it were not for the fact that we have to change/add about six more items, we would definitely leave it in due to the cost.
KerryL1 (California)
Posts: 14,550
Posted:
Heres' what a CA attorney-compiled website says about CC&Rs & bylaws too, it appears:

" Declarant language should be deleted along with all the legalese that goes with it. It gives associations the opportunity to clarify maintenance issues (always a source of conflict and potential liability), add director qualifications, incorporate changes in the law, and make the documents easier to read."

In CA, Stacie, the declarant part of CC&R revisions isn't too hard:

"Approval Requirement. Declarant provisions may be deleted by a majority of those owners representing a quorum, regardless of any higher amendment requirements called for in the documents. The membership may delete any provisions that are unequivocally designed and intended or which by its nature can only have been designed or intended, to facilitate the developer in completing the construction or marketing of the development."

I wonder if NC (or SC, JohnC) has this approach in its statutes.

Citation: Removing Developer Provisions http://www.davis-stirling.com/MainIndex/RemovingDeveloperProvisions/tabid/1319/Default.aspx#ixzz3r2eOms7E
from Davis-Stirling.com by Adams Stirling PLC.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Our lawyer recommended we modify our documents as does Adams Stirling (a law firm) but we opted not to spend the money required. Would you expect any different advice from a law firm? it is called "billable hours". We do not always go along with what our lawyer recommends.

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