SC Master Deed Modifications

Started by BobW18 • 5 replies • 1276 views

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BobW18 (South Carolina)
Posts: 2

Posted:

Our original governing documents were three separate Master Deeds and By-Laws. To compound the problem further, much of the by-laws were written into the Master Deeds, and in some cases differently than the attached By-Laws. In 2015, we completed the compilation of the three Master Deeds and By-laws, however our Attorney tells us we need to have 100% of the owners and the lenders approve the changes for the new documents before they can be registered with the county. 100% is a lot to ask, particularly when some of the owners simply don't like some of the board members, childish as it may be. Here in lies my question: Recently I read a headline stating that SC has changed its requirement for modification of governing documents, and dropped the required approval to 75%. Can anyone in this forum verify that for me please?

Thanks

Bob

TimB4 (Tennessee)
Posts: 21,059

Posted:

Bob,

It may be in a bill before the legislature but I did not see it within the Horizontal Property Act.

I will say that the language of any such law would need to be read. It's common for the law to specify one number but defer to the existing governing documents if that number differs from the statute.

You may want to locate that paper with the headline (perhaps online) and read the story.

Keep in mind that from what you describe, you will need to hold a vote to amend each existing document to the new one. It's possible that you may only get 1 or 2 vs. all 3 of the documents amended (especially if you need 100%). Keep in mind that even with only 75% it may be impossible to amend all three documents.

Did you clarify with the attorney that if the owner says yea and the lender says nay does that vote not count toward the 75%?
Something to ask if you didn't.

KerryL1 (California)
Posts: 14,550

Posted:

Doesn't each of the documents say within it what's require to amend each? I think that' usually towards the end of the doc. But I guess they're silent, which is why an attorney was needed?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Bob

I thought I had posted that maybe you should consider another legal opinion and from one of SC's top HOA law firms whom I named. Seems my post might have been deleted by the mods. If interested, please send me a private message and I will let you know who they are.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Bob,

If your master deed is as messed up as it sounds you might want to take a look at filing a civil action to re-form the contract, the master deed. I am not personally familiar with such actions but I would think that you would need to prove to the court that the current documents are unworkable and virtually impossible to amend. I would imagine that the court would require the plaintiffs to serve notice on all parties with an interest in the master deed and it would be up to each of those parties to file a response if they wish to do so. With the right arguments, the court should allow the substitution of a more workable set of documents for the entire community.

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