RQ (Mississippi)
Posts: 6
Posts: 6
Posted:
Good morning,
I serve on the board for a rural HOA for a community on a lake. There are approximately 110 homes in our HOA and additionally 200 or so lots that are owned by private individuals. The HOA owns (and has for sale) an additional 300 lots which will probably never be sold.
The CC&Rs expired 15 years ago, but we have finally gotten a board more interested in the advancement of our community rather than simply profiting from it. It was a terrible situation but the final "old guard" board member was voted out by the residents this year. We are updating our covenants to put to a vote next year sometime.
One provision of the CC&Rs strikes me as odd. As far as #21 goes... it sounds as though our current CC&Rs wishes to maintain an approval-based system for adding members... this strikes me as country club-ish. How does it sound to you all? I can tell you that this is not a process that we currently use and feels borderline discriminatory. Lots and homes change hands all the time in our HOA without the board's prior approval. Even if this IS a legal practice, I do not believe that our members go along with this even if we leave this verbiage in our updated covenants.
Also Is right to first refusal for sold lots a common rule in HOAs?
As far as #22, What is the difference if we get rid of the clause that states that you have to be "accepted" as a member of our HOA, then does the #22 clause even need to exist? We are running all of this past our legal council, but for the sake of discussing this with our members I am trying to understand the purpose of #22.
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22. Association membership: No sale, transfer, lease or other disposition of any lot in the XXXXXXXXXXX Estates shall be consummated unless and until the purchaser or transferee has applied for and has been accepted as a member of the XXXXXXXXXX Home Owners Association, its successors or assigns. This restriction shall not apply, however, to lending institutions who may bid said property at any foreclosure sale brought by them without regard to such membership restriction, nor shall it apply with respect to a transfer of such property pursuant to a duly probated Will or by virtue of intestacy, pursuant to the Statutes of State of the Mississippi. However, in the event of a transfer of title of foreclosure, probate of Will or interstate succession, XXXXXXXXXXX Estates and/or XXXXXXXXXXXXX Estates, Inc., its successors or assigns, shall have an absolute right of first refusal to purchase said lot from any such transferee or transferees in the event they shall decide to sell, transfer or convey the same.
23. Non-Members: If, notwithstanding the requirement of membership in XXXXXXXXXXXXX Estates Property Owners Association, its successors and assigns, as a condition to the acquisition of title to any lot or lots in said subdivision, title to any of said lots shall in some manner be acquired by a party who has not been approved for membership in the XXXXXXXXXXXXXXXX Estates Property Owners Association referred to in Paragraph 23 hereof or if any lot owner shall cease to be a member of said Association, Club, nevertheless, said lot owner, on behalf of himself, his heirs and assigns, does hereby covenant and agree that they will bear and pay such portion of the lakes, and furnishing of security protection that they would otherwise be required to pay if they were in fact a member of such Association and as determined by the accountant of such Association. Further, by the acceptance and retention of title to any lot or lots, each Grantee, on behalf of himself, his heirs and assigns, does hereby covenant and agree that said Association, its successors and assigns, shall have a lien upon the subject lot or lots second only to liens for taxes and duly recorded mortgage to secure the payment of the aforementioned expenses, including Court Costs, and reasonable attorney's fees incurred in connection with the collection of the same.
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I serve on the board for a rural HOA for a community on a lake. There are approximately 110 homes in our HOA and additionally 200 or so lots that are owned by private individuals. The HOA owns (and has for sale) an additional 300 lots which will probably never be sold.
The CC&Rs expired 15 years ago, but we have finally gotten a board more interested in the advancement of our community rather than simply profiting from it. It was a terrible situation but the final "old guard" board member was voted out by the residents this year. We are updating our covenants to put to a vote next year sometime.
One provision of the CC&Rs strikes me as odd. As far as #21 goes... it sounds as though our current CC&Rs wishes to maintain an approval-based system for adding members... this strikes me as country club-ish. How does it sound to you all? I can tell you that this is not a process that we currently use and feels borderline discriminatory. Lots and homes change hands all the time in our HOA without the board's prior approval. Even if this IS a legal practice, I do not believe that our members go along with this even if we leave this verbiage in our updated covenants.
Also Is right to first refusal for sold lots a common rule in HOAs?
As far as #22, What is the difference if we get rid of the clause that states that you have to be "accepted" as a member of our HOA, then does the #22 clause even need to exist? We are running all of this past our legal council, but for the sake of discussing this with our members I am trying to understand the purpose of #22.
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22. Association membership: No sale, transfer, lease or other disposition of any lot in the XXXXXXXXXXX Estates shall be consummated unless and until the purchaser or transferee has applied for and has been accepted as a member of the XXXXXXXXXX Home Owners Association, its successors or assigns. This restriction shall not apply, however, to lending institutions who may bid said property at any foreclosure sale brought by them without regard to such membership restriction, nor shall it apply with respect to a transfer of such property pursuant to a duly probated Will or by virtue of intestacy, pursuant to the Statutes of State of the Mississippi. However, in the event of a transfer of title of foreclosure, probate of Will or interstate succession, XXXXXXXXXXX Estates and/or XXXXXXXXXXXXX Estates, Inc., its successors or assigns, shall have an absolute right of first refusal to purchase said lot from any such transferee or transferees in the event they shall decide to sell, transfer or convey the same.
23. Non-Members: If, notwithstanding the requirement of membership in XXXXXXXXXXXXX Estates Property Owners Association, its successors and assigns, as a condition to the acquisition of title to any lot or lots in said subdivision, title to any of said lots shall in some manner be acquired by a party who has not been approved for membership in the XXXXXXXXXXXXXXXX Estates Property Owners Association referred to in Paragraph 23 hereof or if any lot owner shall cease to be a member of said Association, Club, nevertheless, said lot owner, on behalf of himself, his heirs and assigns, does hereby covenant and agree that they will bear and pay such portion of the lakes, and furnishing of security protection that they would otherwise be required to pay if they were in fact a member of such Association and as determined by the accountant of such Association. Further, by the acceptance and retention of title to any lot or lots, each Grantee, on behalf of himself, his heirs and assigns, does hereby covenant and agree that said Association, its successors and assigns, shall have a lien upon the subject lot or lots second only to liens for taxes and duly recorded mortgage to secure the payment of the aforementioned expenses, including Court Costs, and reasonable attorney's fees incurred in connection with the collection of the same.
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