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LV (South Carolina)
Posts: 38
Posted:
Hi,

Our current board is under homeowner control at this time. Prior to homeowner control, the declarant (builder) made an amendment change, which they can, and never shared that amendment with entire community. New homeowners who were purchasing homes were never given this amendment in their CCR's as it wasn't included. Now we have homeowners who are stating that this amendment should be void because it wasn't shared with homeowners at time of purchase. I never did receive this amendment in my CCR's as well but the management company had it in their files and shared it once we were homeowner controlled. Can the board do anything to void this amendment change? I checked the CCR's and this is what it states for an amendment change but legally can anything be done? When folks purchased homes this amendment was not included.

Original CCR amendment: The original amendment states you can rent your home after 1 year of residency.
Amendment change: You can now rent your home immediately after purchase and rental contracts must be at minimum 6 months.

Here is the CCR

18.05. Amendment. Until the expiration of the Declarant Control Period, Declarant may, in its sole discretion, and unilaterally, without the requirement of approval, joinder or consent of the Owners or any other party, amend this Declaration as long as such amendment does not materially alter or change any Owner's right to the use and enjoyment of such Owner's Lot or use of the Common Area as set forth in this Declaration and the amendment does not adversely affect the title to any Lot owned by any party other than Declarant, unless such Owner shall consent in writing thereto, which consent shall be filed with such amendment. In addition to the above, this Declaration may be amended:
(a) after the termination of the Declarant Control Period, for so long as the
Declarant and/or any of its affiliates own any Lot in the Subdivision or Combined Subdivision, as the case may be, with the affirmative written consent of the Declarant and upon the affirmative vote or written consent, or any combination thereof, of the Owners of not less than a

majority of the Total Association Vote (including Declarant's ownership) of the Lots; and
(b) if the Declarant and no affiliate of Declarant owns any Lot in the
Subdivision, or the Combined Subdivision, as the case may be, upon the affirmative vote or written consent, or any combination thereof, of the Owners of at least a majority (more than 50%) of the Total Association Vote, provided that (1) no amendment shall alter any obligation to pay ad valorem taxes or assessments for public improvements, as herein provided, or affect any lien for the payment thereof established herein; (2) no amendment shall adversely affect any rights or interest of Declarant as provided herein, unless agreed to in writing by Declarant; (3) no amendment shall have priority over any amendment made by Declarant in accordance with this Article, as long as Declarant or any affiliate of Declarant owns a Lot; and (4) no amendment shall alter, modify or rescind any right, title, interest or privilege herein granted or accorded to any mortgagee of a Lot affected thereby unless such holder shall consent in writing thereto, which consent shall be filed with such amendment. Any such amendment also shall constitute rights and interests appurtenant to the Property and shall run with the title to the same. All amendments must be properly recorded in the office of the Register of Deeds for the County.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
LV

If the change was done properly by the Declarant, which it seems was, then it stands. In SC an amendment has to filed with the County Registrar of Deeds so it pops up in a title search but it does not get attached to each deed.

Our Declarant made several Covenant changes before turnover and I know that all owners were not notified and I believe they did not have to be notified.

LV (South Carolina)
Posts: 38
Posted:
That's what I thought as well. I think this will stand.
BenA2 (Texas)
Posts: 1,273
Posted:
If the amendment was properly filed then people should have received the updated information when they purchased their homes. Generally, not receiving the CC&Rs does not relieve an owner from following them, even if the seller and/or title company are required to provide them.

I think the only way to change or repeal the amendment would be by majority vote of the owners. You may have a valid argument that the amendment does "materially alter or change any Owner's right to the use and enjoyment of such Owner's Lot." The original CC&Rs allowed rentals for less than six months and the change materially altered that right to use. The problem is that I don't think a court would look at it unless the board tried to enforce it and the owner challenged it.

If the amendment was not filed properly it may be invalid depending on your state law.

I would definitely speak to an attorney before doing anything.
AugustinD
Posts: 5,144
Posted:
The part of the amendment procedure that bothers me is: "... as long as such amendment does not materially alter or change any Owner's right to the use and enjoyment of such Owner's Lot or use of the Common Area as set forth in this Declaration and the amendment does not adversely affect the title... "

Because of this, and because of the apparent lack of notice, I think the validity of the amendment is questionable.
AugustinD
Posts: 5,144
Posted:
Is the amendment recorded with your county clerk? If not, then it fails the notice requirement, and this will argue even more strongly for it being invalidated. Check your CCRs for what they say about filing the CCRs and amendments with the county.
LV (South Carolina)
Posts: 38
Posted:
It was filed with the county so its legit. Thanks all.

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