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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

DennisF5 (South Carolina)
Posts: 4
Posted:
Hello All,

I am working with my HOA management company on drafting an amendment to our covenant language. Since they were unwilling to explain the process for having it changed, I drafted a petition which includes the current and proposed language and lines for each lot owner to give their printed name, signature, address, telephone number, lot number, and date. Our covenants require 75% of the lot owners to sign the amendment. The declarant is no longer a lot or parcel owner.

Out covenants reads as follows:
8.3 Amendment. This Declaration may be amended or terminated during the first twenty (20) year period by and instrument signed by not less than seventy-five percent(75%) of the Owners, and thereafter may be amended or terminated by an instrument signed by not less than sixty-seven percent (67%) of the Owners. Any such amendment or termination shall not be effective until an instrument evidencing such change has been filed of record in the Office of the Clerk of Court of York County. Notwithstanding the foregoing, the Declarant shall have the ability to amend the Declaration so long as Declarant is an owner of a Lot or parcel of land subject to these Declarations.

So I went door to door for several weeks to get the required signatures necessary to change the covenants (I have 80% of the lot owners), and now the HOA Management company says that the document is not legal because we didn't have a notary verify each signature. I told her that our covenants do not say anything about a notary having to witness each signature. She is saying that South Carolina Law requires this, and will not provide me with the language in the state law to confirm. Has anyone seen this as a requirement? I think they are just forcing their views and not necessarily the wishes of the property owners.

Any advise from someone familiar with South Carolina HOA laws would be greatly appreciated.

Thanks,
Dennis
DouglasM6 (Arizona)
Posts: 724
Posted:
I'm sure I'm missing something, but who cares what the management company thinks. You have the needed votes, record the change with the county and it's done. The management company works for the BOD.

Or, am I missing something?
KerryL1 (California)
Posts: 14,550
Posted:
We do have some knowledgeable SC posters. But I, too, ask: what's makes you think the MC is correct?? If they can't show you the law in writing, tell them to. Often HOA boards seek legal advice form an HOA attorney.

Are you on the board?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The whole process is IN the documents on how to change them. Plus the percentage of votes. Articles of Incorporation may require less votes than your CC&R's. Articles are STATE documents and CC&R's are COUNTY. By-laws do not necessarily need to be filed in many states but are with CC&R's. The CC&R's are really the most important document to change.

Highly recommend a lawyer to assist and NOT your MC. They most likely don't know the process. It's not like they have to follow them. I would not get a Real Estate lawyer. One with HOA knowledge is best.

The documents will have to be FILED at the county once votes are collected. Which there is a fee to do that. Ours was $700. So plan on expenses to be a few thousand dollars. Depends on how you go about it with the lawyer and if you plan on paying for distribution of copies.

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I agree. Forget what the MC says and get a lawyers advice.

In SC an Amendment only has to be filed with the Clerk of Deeds one time. It does not have to be attached to each deed as it has to be in some states thus not as expensive.

Not to be critical, but you should have started with a lawyer to be sure the change was legally drawn up and not even gotten the MC involved.
DennisF5 (South Carolina)
Posts: 4
Posted:
No I am not on the board. The management company is claiming that the HOA attorney says the document is unrecordable, but could be added as an exhibit to be recorded. They claim the HOA attorney suggested not to approve the exhibit, because the documents could be challenged because the signatures weren't notarized. My main question I guess is have you heard of having to have a covenant text amendment notarized for every single signature?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Dennis

I hate those that play lawyer and while I do not have a legal answer to your question, we have discussed a Covenant change with our lawyer. He has told us that he can prepare the Covenant change and a mail-in proxy for owners to return approving the change thus I do not understand the need for notarizing signatures.

The BOD should be talking to the attorney, not the MC. could it be that your MC does not want the change and is throwing roadblocks in the way?

As you are not on the BOD, what is the BOD's attitude about you going about trying to make a Covenant change. Maybe this is the issue. The BOD is fighting you via the MC. The more I type, the more I think this might be the issue. Am I warm?
DennisF5 (South Carolina)
Posts: 4
Posted:
Not exactly. I have most of the board members signatures on the amendment. We have a pretty small community of only 53 Lots. I think the problem is partially because it is a very new board. We just took control from the developer in the fall. For many people this was their first board meeting and very impressionable by the management company. They were sort of scaring them into not taking action by saying someone could challenge the document I think. I have heard of proxy's being used as well... And those aren't notorized, so not sure why my amendment would require it.
KerryL1 (California)
Posts: 14,550
Posted:
What, Dennis, do your covenants say about HOW to amend them?
DennisF5 (South Carolina)
Posts: 4
Posted:
The exact language in our covenants is written in my first post on this thread above.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Dennis

Was the MC on-board when the owners took over? Do you have the BOD's approval to seek a Covenant change? What is the change about?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DennisF5 on 02/20/2018 5:42 PM

My main question I guess is have you heard of having to have a covenant text amendment notarized for every single signature?

I've seen it done.

I've also seen a simple statement signed and notarized by the President and Secretary of the Association saying that the signatures were valid.

Worst case, become a notary (or bring one with you) and recollect the signatures.

You should have the amendment reviewed by an attorney for the proper legalize and whereas/therefore statements.

KerryL1 (California)
Posts: 14,550
Posted:
Oooops, sorry, Dennis, I'd forgotten about your OP! Sounds like you followed your covenants. Still, with others, seek your own legal advice or get other interested neighbors to chip in for an opinion. The wording of your amendment really does need a lawyers' eye.
KerryL1 (California)
Posts: 14,550
Posted:
Oooops, sorry, Dennis, I'd forgotten about your OP! Sounds like you followed your covenants. Still, with others, seek your own legal advice or get other interested neighbors to chip in for an opinion. The wording of your amendment really does need a lawyers' eye.

🎯 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