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CaroleM5 (California)
Posts: 2
Posted:
I live in a rural California subdivision. There has never been a Homeowner's Assoc, just a neighborhood club with voluntary membership. New CC&Rs were recorded by one of the members a couple months ago, based on a supposed vote in 2003, and claiming to be effective 2003. The recording did not take place until 2017. Is this legitimate? I can't seem to find a statute concerning the time limit to record CC&Rs after the vote.

Further, these CC&Rs are nothing more than a variation of the club's bylaws and clearly say that---however they added in language stating membership is now mandatory for every owner in the subdivision. Is there a way short of costly legal action to have these rescinded? County Counsel washed their hands of it saying it's a matter between the parties.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By CaroleM5 on 09/15/2017 9:29 AM

Is there a way short of costly legal action to have these rescinded?

Doubtful.

You need to consult with an attorney to see what your legal options are.
There may also be a timeline to challenge the amendment. Hence, don't delay seeking a legal opinion.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Generally CCRs can't be amended to include people without their consent, so changing to mandatory would require 100% assent. Whether the newly recorded CCRs are valid or not, if the people running the association feel they are, they will probably take legal action to collect dues. The final determination whether the changes are valid would be with a judge.

You can take preemptive action now, or wait until they are trying to charge you late fees, interest, and legal fees.

As Tim suggested, you will want an attorney involved eventually either way. Do you have neighbors with the same concerns? If so, join together and pool your money rather than each of you paying full bore for your own counsel. I wouldn't wait for them to start piling on fees, I would contact a lawyer soon.

Escaped former treasurer and director of a self managed association.
GwenG (Florida)
Posts: 669
Posted:
Consider a Slander of Title lawsuit to have the bogus restrictions removed from your property.

Suggest you act quickly as the statute of limitation might shut you out soon. In Florida, it is 5 years and this was recorded in 2013.

Your member would be well-advised by your attorney to revoke this recording immediately.
PainintheA
Posts: 43
Posted:
DITTO DITTO DITTO
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I agree, A legal opinion is needed. I see two questions:

1. Is this document as originally agreed to?

2. Can it be filed and become effective after such a delay?
PainintheA
Posts: 43
Posted:
Quote:
Posted By JohnC46 on 09/15/2017 2:35 PM
I agree, A legal opinion is needed. I see two questions:

1. Is this document as originally agreed to?

2. Can it be filed and become effective after such a delay?

1. good question

2. I would wager NO

let the OPINIONS continue - this will end in court no matter what we-all say
GaryM15 (North Carolina)
Posts: 63
Posted:
Quote:
Posted By CaroleM5 on 09/15/2017 9:29 AM
I live in a rural California subdivision. There has never been a Homeowner's Assoc, just a neighborhood club with voluntary membership. New CC&Rs were recorded by one of the members a couple months ago, based on a supposed vote in 2003, and claiming to be effective 2003. The recording did not take place until 2017. Is this legitimate? I can't seem to find a statute concerning the time limit to record CC&Rs after the vote.

Further, these CC&Rs are nothing more than a variation of the club's bylaws and clearly say that---however they added in language stating membership is now mandatory for every owner in the subdivision. Is there a way short of costly legal action to have these rescinded? County Counsel washed their hands of it saying it's a matter between the parties.


Carol,
There are several different considerations in play here.

If the CC&Rs were filed before any lots were sold, then all deeds make the CC&Rs mandatory. This is different from the HOA membership, and paying assessments, being mandatory.

If the HOA is truly voluntary, that is, CC&Rs didn’t create a HOA, then it takes 100% agreement, generally by signed statements, to change the CC&Rs to create a mandatory HOA.

However, the CC&Rs may be amended (other than creating a HOA) by a vote. The CC&Rs may specify the votes needed, or absent that, it may be 100%.

When the new CC&Rs were recorded, what was submitted as validation that these were legitimate? If there is no evidence of the vote, properly documented, and perhaps a notarized statement by the person filing the CC&Rs, then the amendment is probably worthless.

Good Luck
Gary

CaroleM5 (California)
Posts: 2
Posted:
Thanks for everybody's input. There was no HOA when the subdivision was created in the 1920's, nor did the original CC&Rs call for one. The Improvement Club was formed and incorporated (as a non-profit social club) in the 1950's, and done without any change to the CC&Rs. Membership in the Improvement Club was voluntary, and so were the dues. They have wanted to force an HOA ever since we moved here, and this is just their latest, and boldest, attempt.

When recording the new CC&Rs they offered no evidence or proof of the vote, just a statement within the first section saying a vote had taken place in 2003. At best, any vote they may have taken was to change the bylaws of the voluntary Improvement Club. What they have now recorded as CC&Rs are a close match to one of several sets of Improvement Club bylaws they've issued over the years, but with added sections declaring these are to amend the original CC&Rs, and that all property within the subdivision is subject to the provisions of the document.

There were no signatures of anyone except the person who submitted the document to the recorder's office, and her signature was notarized but only insofar as verifying her identity, the notary page specifically stating it "does not certify the truthfulness, accuracy or validity of the document".

Shouldn't there be something in either the Civil Code or Corporation Code for how long after a vote something has to be recorded to be valid, making this a slam / dunk?

Or the fact that these new CC&R's are almost an exact copy of the Improvement Club's bylaws to the extent that provisions are even referred to as bylaws within it?

Or the lack of a real signed certification as to the accuracy?

The first lawyer looked at it for 2 minutes and said don't worry about it, it's so ridiculous it could never stand. But we're concerned about the statute of limitations running and don't want to ignore this. The second lawyer said $10K-$20K.

When confronted and asked why they would do such a thing their stated reason was to help a homeowner obtain a loan. Wouldn't knowingly recording bylaws and purporting them to be CC&Rs in order to influence a lender's decision constitute some sort of an illegal activity?

We're looking for a simple way to get them revoked or force the Improvement Club to revoke them themselves, or for some sort of leverage to force them to revoke these without us having to spend $10K-$20K.

One other question: They have some sort of D&O / Liability insurance. Would their insurance company refuse to defend / represent them in legal action if it was an improper / unlawful recording?

I really appreciate the feedback.
GwenG (Florida)
Posts: 669
Posted:
One other question: They have some sort of D&O / Liability insurance. Would their insurance company refuse to defend / represent them in legal action if it was an improper / unlawful recording?

D & O ie Directors and officers. Was the person who slandered the title of every single parcel in your subdivision a director or officer in 2013? If not, your D & O insurance will not cover the Association.

The cheapest way to start the ball rolling is to engage an attorney to send a letter to the person who recorded this material and put them on notice of a future lawsuit.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Carole,

There is no simple way.

File legal action to challenge the deed restrictions.

Find additional neighbors who agree with you to add to the fight and share the cost.
GenoS (Florida)
Posts: 4,276
Posted:
Sharing the legal costs is probably the way to go. There's a chance it never goes to trial and the final bill could end up being less than the $10,000 to $20,000 estimate. There are, I think, many causes of action against whoever filed them. If they haven't got deep pockets then a couple of letters dangling the prospect of thousands of dollars in legal fees against them might be enough. I wouldn't wait too long before doing something.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By CaroleM5 on 09/15/2017 9:29 AM
I live in a rural California subdivision. There has never been a Homeowner's Assoc, just a neighborhood club with voluntary membership. New CC&Rs were recorded by one of the members a couple months ago, based on a supposed vote in 2003, and claiming to be effective 2003Hmmm ... If voluntary then then there would not be any CCR's attached to your property title. Are they so attached???. The recording did not take place until 2017. Is this legitimate? Potentially in most states any HOA documents agreed to by owners would need to be immediately filed. WHY ... because when you purchase your home your TITLE INSURANCE searches the available records to determine what would affect your Property Title. If something took place in 2003 it should have been filed so any owner from that date forward would be aware of any such changes. Potentially to file a document NOW which was subject to a vote in 2003 I would contend would be illegal. AGAIN WHY ... because owners between 2003 and now would not have been properly notified of said change. I can't seem to find a statute concerning the time limit to record CC&Rs after the vote.

Further, these CC&Rs are nothing more than a variation of the club's bylaws and clearly say that---however they added in language stating membership is now mandatory for every owner in the subdivision. Is there a way short of costly legal action to have these rescinded? Look at your property documents ... do they state that CCR's are attached? IF when you purchased you do NOT have CCR's noted as attached ... tell them to take a hike. Documents attached will also be noted in your Title Insurance Documents. If you have Title Insurance and they DO NOT note HOA documents attached to your property title ... then THEY (Title Insurance) have a responsibility to protect your title as sold. County Counsel washed their hands of it saying it's a matter between the parties.If there are no documents attached to your title ... that could be their bad!

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