Common Area Deed

Started by DannyD • 13 replies • 2131 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

DannyD (Texas)
Posts: 8

Posted:

Does anyone know what can be done regarding deeding of land to HOA. Sorry for the long read....

Here's the situation.

The developer had meeting to hand over the HOA, we had votes and created new board a few months ago.

At that time the developer did not deed over the reserves. There are 4 reserves, street reserve, 2 detention ponds, and recreational reserve. The developer told us there would be a park on the recreational reserve when we bought in the neighborhood, I have proof, and its platted that way.

They have said repeatedly before that they would try to build on the recreational reserve lots(2 lots). They had vote, it failed. So the property is still platted as recreational reserve.

They actually refused to finish sidewalk and remove stubs, until I found that the plat actually required the sidewalks on all neighborhood roads, and that the lots needed to be set as a recreational reserve. It took me contacting the city to get this result.

So here it is a few months later, and we have an HOA, with no land. The developer still has one home that they are about to close on in the neighborhood, however they still maintain that they are not going to deed over the recreational reserve.

They were not maintaining any of the common areas, we had to get the city to enforce the code restrictions on the land to mow, and the developer still refused to maintain. So the HOA had to pay to mow the property. legally we cannot negotiate a contract on land we dont own, and the CCNR is vague on duties.

the Final Plat says that all detention facilities open spaces and easements are to be maintained by an HOA...How does the HOA maintain property that isn't deeded over? I dont think the HOA should be responsible for property that we dont own.

Anyone have any ideas?

PaininyourA
Posts: 215

Posted:

..... They were not maintaining any of the common areas, we had to get the city to enforce the code restrictions on the land to mow .....

continue until y'all actually own the 'common elements'

JohnC46 (South Carolina)
Posts: 14,265

Posted:

The developer had to put up a performance bond with the local government. Go after holding the bond reimbursement up even if you have to hire an attorney to do so.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By DannyD on 10/31/2017 2:21 PM
Does anyone know what can be done regarding deeding of land to HOA. Sorry for the long read....

Here's the situation.

The developer had meeting to hand over the HOA, we had votes and created new board a few months ago.

At that time the developer did not deed over the reserves. There are 4 reserves, street reserve, 2 detention ponds, and recreational reserve. The developer told us there would be a park on the recreational reserve when we bought in the neighborhood, I have proof, and its platted that way.

They have said repeatedly before that they would try to build on the recreational reserve lots(2 lots). They had vote, it failed. So the property is still platted as recreational reserve.

They actually refused to finish sidewalk and remove stubs, until I found that the plat actually required the sidewalks on all neighborhood roads, and that the lots needed to be set as a recreational reserve. It took me contacting the city to get this result. LOL ... YEP I contacted my City on many items regarding our past Developer. As another posted above ... the City potentially has an SIA (Site Improvement Agreement) with the Developer which includes essentially "Bond $$$" the developer had to put up when entered the agreement. If you have not done so already ... I would recommend obtaining copies of this contract with the City which should be "public information". In my are it is also filed with the local County Records .

So here it is a few months later, and we have an HOA, with no land. The developer still has one home that they are about to close on in the neighborhood, however they still maintain that they are not going to deed over the recreational reserve. If your City has been helpful ... seek their aid if they have not yet released the Developer's $$$ they are holding.

They were not maintaining any of the common areas, we had to get the city to enforce the code restrictions on the land to mow, and the developer still refused to maintain. So the HOA had to pay to mow the property. Legally we cannot negotiate a contract on land we dont own, and the CCNR is vague on duties. LOL ... When our past developer tried to charge Association Fees ... I asked what it was to cover ... they stated the "Common Area Property". LOL ... my response was the HOA via the County Records did not own any Common Area Property ... therefore, to charge me or other owners to maintain property the HOA did not own would be fraud. LOL ... the developer then took steps to transfer to the HOA. Potentially ... If I was the HOA I would have REFUSED to maintain property the HOA did not Own. I would have provided the Local Government the information from your County Records noting that the HOA did not own the property ... and therefore was not responsible to maintain.

the Final Plat says that all detention facilities open spaces and easements are to be maintained by an HOA...How does the HOA maintain property that isn't deeded over? I dont think the HOA should be responsible for property that we dont own. I am not an attorney ... but same as my last HOA .... NOPE ... I would contend the HOA IS NOT liable for any property which they (via County Records) DO NOT OWN. I would content potentially Local Governments need to take better care to insure that some agreements are upheld with regards to new subdivisions which they approve!!!!

Anyone have any ideas?

DannyD (Texas)
Posts: 8

Posted:

Janet,

There are some unusual forces at play here...
I tried to make the developer maintain the property, but we had a homeowner complain about the grass being too high as a safety issue. He was rallying other homeowners to complain as well. The homeowner that complained has a business relationship with the developer, so we think the developer asked him to complain. We have tried to explain to the neighborhood the situation, but we are being opposed. Right now the grass isn't growing fast, so its easier to hold our ground.

We have multiple city officials involved. And we have been speaking to an attorney, but have not secured the attorney. The developer didnt leave us any kind of reserve of money, and they know we dont have enough to retain an attorney.

We are working on going to social media with this. People seem to respond to that kind of things these days.

PaininyourA
Posts: 215

Posted:

Quote:

Posted By PaininyourA on 10/31/2017 4:19 PM

..... They were not maintaining any of the common areas, we had to get the city to enforce the code restrictions on the land to mow .....

continue until y'all actually own the 'common elements'

DannyD (Texas)
Posts: 8

Posted:

I've been told by the city that there is nothing they can do to force the developer to deed over the land. They feel its not in the developer's interest to hold onto the land, because usage of the land is limited. I spoke to code enforcement with the city, and if the developer refuses to maintain the property and the city has to step in to mow, they will bill the developer, if the developer still refuses to pay, the city can put a lien on the property. Which would further complicate the issue of ever getting the property deeded over.

We are also at the point of renewing our insurance, and if dont own it, how do we insure it, and why should we pay to insure property that doesn't belong to us?

PaininyourA
Posts: 215

Posted:

We are also at the point of renewing our insurance, and if dont own it, how do we insure it, and why should we pay to insure property that doesn't belong to us?

you don't and you don't

it is the developer's/owner's problem

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By DannyD on 11/03/2017 8:09 AM
I've been told by the city that there is nothing they can do to force the developer to deed over the land. They feel its not in the developer's interest to hold onto the land, because usage of the land is limited. I spoke to code enforcement with the city, and if the developer refuses to maintain the property and the city has to step in to mow, they will bill the developer, if the developer still refuses to pay, the city can put a lien on the property. Which would further complicate the issue of ever getting the property deeded over.

We are also at the point of renewing our insurance, and if dont own it, how do we insure it, and why should we pay to insure property that doesn't belong to us?

THAT is EXACTLY what needs to happen ... then at some point the Developer will finally PAY any liens and finally turn over the property to the HOA. As long as the HOA will themselves PAY for any property they do not LEGALLY own ... why should the developer turn over their interest??? Ha ha ha ... your HOA is giving them a free ride!!! My personal opinion all the HOA is doing in your situation is enabling the Developer to continue with the BS! Potentially if I was one of your homeowner's I could sue the HOA for charging my family $$$ to pay for maintaining property the HOA does not legally own. You need to read your governing documents and State Laws and see what both state with regards to "common interest property" which is the responsibility of you and your fellow owners to pay assessments to maintain. Bet it does not state paying for any property not owned by the HOA

DannyD (Texas)
Posts: 8

Posted:

My overall goal is to obtain the property platted to our HOA, not fight the developer. The developer is just doing this to be a jerk.

The city has stepped in to help, thank goodness. But there is still nothing the city can do to make the developer turn over the recreational reserve. The developer still claims ownership over the property, even though there is nothing they can do with it. they have threatened to sell the property, they have threatened to build on it, yadda yadda.

We are not up for insurance renewal, and there is a fee associated to let the insurance lapse. So if the developer drags his feet, it costs us money.

They also put the utilities in their name, not the HOA, so we are battling that right now. I cannot transfer the utilities because they are in the developers name. If I cancel the old accounts, we have to pay deposits again. GRRR!

JanetB2 (Colorado)
Posts: 4,219

Posted:

Contact your local Attorney General ... there could be possible fraudulent real estate violations which would allow the AG to help getting the property turned over per your Conracts.

JanetB2 (Colorado)
Posts: 4,219

Posted:

You might also see about the City also contacting the Attorney General with questions ... if both of you contact might get quicker response.

DannyD (Texas)
Posts: 8

Posted:

I suspect going through attorney general would take a long time.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By DannyD on 11/07/2017 11:39 AM
I suspect going through attorney general would take a long time.

Maybe or maybe not ... potentially if you and City contacts and if Developer is violating State Laws ... possibly a quick telephone call or letter from the local Attorney General to the Developer would get a quick response and transfer to avoid possible criminal charges. The route you are currently going could also take a very long time.

LOL ... I understand your frustration and had many GRRR's myself with my last developers with similar situation. Of course when the new developer wanted to start charging assessments for the common property and I told them could not because prior developer had not yet transferred to HOA, it was amazing how fast they had that snafu fixed. Of course did not tell them until later they also could not yet charge for the property until they were no longer using as part of their development rights. Initially I was just trying to get the property into HOA's name. Yep ... during development they were required to maintain the property ... they were not very happy.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here