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KarenM29 (Florida)
Posts: 10
Posted:
Hi - my HOA's CC&R expired in 2013 due to not having been renewed before 30 year date. In 2015, the then BOD of attempted to pass a renewal by a vote just of the Board and filed that but it was after the expiry had occurred. As such, this act by the BOD was ineffective to reinstate the HOA, correct?

Most of the home owners are not aware of this yet. What should be done? Can a brand new BOD be elected and brand new PUD put in place? Who currently owns the rights and obligations undertaken by the HOA before it expired? What other things are of importance at this point? Could certain parcels/home owners take this opportunity to excise themselves from the HOA and relenquish ownership of the common areas and benefits thereof?
DouglasK1 (Florida)
Posts: 2,046
Posted:
Yes, the board attempting to preserve the CCRs after the expiration is ineffective. The problem is that if they continue to do business as usual, your only real way to fight would be to sue, which can get expensive.

The association can still revitalize the CCRs but it is a much more involved process than preserving them would have been.

A new BOD would make no difference in the status. Putting new CCRs in place would probably require agreement of every property owner, or at least only the ones that agree would be bound by them.

I'm not sure what the legal status of the common elements and responsibilities are at this point.

One poster here has been involved in long process regarding MRTA expiration, here is the most recent thread but if you search on his name you'll find much longer ones within the past year or so.

http://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/242017/view/topic/Default.aspx

Escaped former treasurer and director of a self managed association.
GenoS (Florida)
Posts: 4,276
Posted:
There are a few members around here that have been involved in actual MRTA situations. I'm not one of them but I have read the statute and you should too. It's FS 720.405. The first subsection, (1), says,

"The proposal to revive a declaration of covenants and a homeowners’ association for a community under the terms of this act shall be initiated by an organizing committee consisting of not less than three parcel owners located in the community that is proposed to be governed by the revived declaration. The name, address, and telephone number of each member of the organizing committee must be included in any notice or other document provided by the committee to parcel owners to be affected by the proposed revived declaration."

Note the key thing: the organizing committee. This does not mean "the last board", it means ANY [minimum of 3] parcel owners in the community. You and a few neighbors could form your own organizing committee. From what I've read here, the FL Department of Economic Opportunity doesn't do a lot of heavy lifting or investigation when revitalization paperwork is submitted. They essentially rubber-stamp whatever comes in through their door.

Get your committee together and do everything the statute calls for. Get the necessary signatures, dot the i's and cross all the t's, and odds are if your paperwork gets there first the Dept. will act on a first-come first-served basis. I'd suggest getting there first so you can avoid whatever nonsense some other organizing committee comes up with. If a board or series of boards was asleep at the switch long enough to let MRTA expire your covenants, I'd suggest those people are the LAST people you want anywhere near an organizing committee. They had their chance to do the right thing and blew it.
KarenM29 (Florida)
Posts: 10
Posted:
So I have an update... from the papers given to me at closing, the HOA was established in 1983, and hence because not renewed in 2013, expired. The BOD filed papers says the HOA was renewed by 2/3 vote of the BOD in 2015 however, as you all have told me this was ineffective.

We approached the BOD and they have told us that the HOA was not established in 1983 as stated in our official documents but the MRTA 30 year expiry of an HOA runs from the date of "root title" and not from the data provided in the official HOA declarations.

Does anyone have any comment on this issue of "root title" for calculating when the 30 years commences?
ArtL1 (Florida)
Posts: 140
Posted:
What/when do they think/claim the root of title was? AFAICT, it's when the governing documents for your HOA were first filed with the county.

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0712/0712.html
GenoS (Florida)
Posts: 4,276
Posted:
Root of title applies to title transactions and the dates they were recorded. The dates on which HOA governing documents were recorded, e.g. covenants, restrictions, declaration, CC&Rs, etc., are irrelevant. All that matters is the date that the last title transaction was recorded at least 30 years prior. See FS 712.

There are exceptions in Florida, such as if the deed or title instrument references a specific plat book and page in the county's records and the plat itself references, in turn, the book and page the CC&Rs (covenants, restrictions, etc.) in the county's official records, then MRTA will not extinguish those restrictions and covenants.
KarenM29 (Florida)
Posts: 10
Posted:
Quote:
Posted By GenoS on 03/15/2018 12:15 AM
Root of title applies to title transactions and the dates they were recorded. The dates on which HOA governing documents were recorded, e.g. covenants, restrictions, declaration, CC&Rs, etc., are irrelevant. All that matters is the date that the last title transaction was recorded at least 30 years prior. See FS 712.

There are exceptions in Florida, such as if the deed or title instrument references a specific plat book and page in the county's records and the plat itself references, in turn, the book and page the CC&Rs (covenants, restrictions, etc.) in the county's official records, then MRTA will not extinguish those restrictions and covenants.

So if the CC&R commence when each lot in a subdivision is titled, then the CC&R potentially expire at different times. Is that right? But what if some have expired and some haven't and the BOD resubmits itself without going for a community vote pursuant to section 712. Is that BOD action insufficient to reinstate as to the lots which have already expired? What about the ones that have not yet expired? What is the status?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KarenM29 on 03/15/2018 1:57 PM
Posted By GenoS on 03/15/2018 12:15 AM
Root of title applies to title transactions and the dates they were recorded. The dates on which HOA governing documents were recorded, e.g. covenants, restrictions, declaration, CC&Rs, etc., are irrelevant. All that matters is the date that the last title transaction was recorded at least 30 years prior. See FS 712.

There are exceptions in Florida, such as if the deed or title instrument references a specific plat book and page in the county's records and the plat itself references, in turn, the book and page the CC&Rs (covenants, restrictions, etc.) in the county's official records, then MRTA will not extinguish those restrictions and covenants.


So if the CC&R commence when each lot in a subdivision is titled, then the CC&R potentially expire at different times. Is that right? But what if some have expired and some haven't and the BOD resubmits itself without going for a community vote pursuant to section 712. Is that BOD action insufficient to reinstate as to the lots which have already expired? What about the ones that have not yet expired? What is the status?

Good questions. FL is screwed up on this issue. There are as many answers as there are those answering.
GenoS (Florida)
Posts: 4,276
Posted:
Here are a few links that might help clarify the situation.

Link 1 (2016)
"When MRTA applies to extinguish a declaration’s restrictions, it does not necessarily extinguish those restrictions for all properties – that is, certain properties may still be subject to the declaration’s restrictions. This can leave the community looking like swiss cheese where some properties are clearly abiding by the restrictions in the declaration and others are not."

Link 2 (2016)
"MRTA operates such that covenants recorded more than 30 years earlier can begin to expire on a lot-by-lot basis unless such covenants fit squarely into one of the exceptions to MRTA or unless action is otherwise taken to preserve the covenants from being extinguished."

Link 3 (2015)
"Most people incorrectly believe that the law provides that all covenants expire after 30 years. That is not true."

Link 4 (2003)
"The amended restrictions were filed within the chain of title of lots 1, 2, 4, and 9 but even assuming the amendment was intended to apply to all lots originally owned by the developer, the amendment would be extinguished as to these lots because it predates their root of title, is over 30 years old and no exception applies."

That last one, Link 4, is a court decision that talks about MRTA aspects of the case, and clearly MRTA had expired the covenants with regard to certain lots in the subdivision, but not others.

So as you can see, MRTA does not expire covenants just because they're 30 years old. Expiration of covenants happens on a parcel-by-parcel basis and it all depends on the dates on the deeds for "root of title". Many, many lawyers get this wrong. And so do state employees, apparently.
KarenM29 (Florida)
Posts: 10
Posted:
Quote:
Posted By GenoS on 03/15/2018 9:59 PM
Here are a few links that might help clarify the situation.

Link 1 (2016)
"When MRTA applies to extinguish a declaration’s restrictions, it does not necessarily extinguish those restrictions for all properties – that is, certain properties may still be subject to the declaration’s restrictions. This can leave the community looking like swiss cheese where some properties are clearly abiding by the restrictions in the declaration and others are not."

Link 2 (2016)
"MRTA operates such that covenants recorded more than 30 years earlier can begin to expire on a lot-by-lot basis unless such covenants fit squarely into one of the exceptions to MRTA or unless action is otherwise taken to preserve the covenants from being extinguished."

Link 3 (2015)
"Most people incorrectly believe that the law provides that all covenants expire after 30 years. That is not true."

Link 4 (2003)
"The amended restrictions were filed within the chain of title of lots 1, 2, 4, and 9 but even assuming the amendment was intended to apply to all lots originally owned by the developer, the amendment would be extinguished as to these lots because it predates their root of title, is over 30 years old and no exception applies."

That last one, Link 4, is a court decision that talks about MRTA aspects of the case, and clearly MRTA had expired the covenants with regard to certain lots in the subdivision, but not others.

So as you can see, MRTA does not expire covenants just because they're 30 years old. Expiration of covenants happens on a parcel-by-parcel basis and it all depends on the dates on the deeds for "root of title". Many, many lawyers get this wrong. And so do state employees, apparently.

Thank you so much extremely helpful. I had seen that Palm Beach case that talks about the Swiss Cheese effect.

As to your last point, ".. Expiration of covenants happens on a parcel-by-parcel basis and it all depends on the dates on the deeds for "root of title".

Heres my question, say 30% of parcels are expired in 2013 and BOD realizes it 2 years later. Doesn't tell community/property owners, but immediately convenes and passes to reinstate by 2/3 vote among themselves. That vote was insufficient to reinstate the CC&R as to the expired parcels. What about as to the other 70% that hadn't expired... was that 2/3 BOD vote sufficient to reinstate those for another 30 years? Regardless the "Swiss cheese" still exists, correct? There still hasn't been a community vote. Would you recommend for 3 parcel owners to initiate the process of 712? The BOD claims they have "opinions" that everything is AOK. But when we ask them out of abundance of caution submit the situation to a full community vote to be on the safe side, but they are not willing because of their own necks... Which is do get from their personal perspective. But for the owners, not reinstating by community vote, keeps the swiss cheese in place.

ArtL1 (Florida)
Posts: 140
Posted:
Quote:
Posted By KarenM29 on 03/16/2018 6:25 AM

Heres my question, say 30% of parcels are expired in 2013 and BOD realizes it 2 years later. Doesn't tell community/property owners, but immediately convenes and passes to reinstate by 2/3 vote among themselves. That vote was insufficient to reinstate the CC&R as to the expired parcels. What about as to the other 70% that hadn't expired... was that 2/3 BOD vote sufficient to reinstate those for another 30 years? Regardless the "Swiss cheese" still exists, correct? There still hasn't been a community vote. Would you recommend for 3 parcel owners to initiate the process of 712? The BOD claims they have "opinions" that everything is AOK. But when we ask them out of abundance of caution submit the situation to a full community vote to be on the safe side, but they are not willing because of their own necks... Which is do get from their personal perspective. But for the owners, not reinstating by community vote, keeps the swiss cheese in place.


If any parcels actually had the CC&R expire due to MRTA, then it's too late for the board to do anything unilaterally. A majority of the affected members would have to vote at a proper meeting of the members to approve reinstatement.

Have a look at the following, and then read Part III of FS 720.

https://www.floridabar.org/news/tfb-journal/?durl=%2Fdivcom%2Fjn%2Fjnjournal01.nsf%2FAuthor%2FA8A8DA7514A6718885256FF10060DF88
GwenG (Florida)
Posts: 669
Posted:
Here is my opinion and I sued my HOA on a MRTA issue i.e. slander of title" and prevailed and have more than average experience with MRTA law.

MRTA expires lots on a one by one basis based on the date of "root of title". This is not difficult to determine-just look up the term on google and start counting to 30 years and inspect every title from that root date to ascertain any intervening preservations by individual title transactions. This hardly ever happens-but it is possible that an eagle-eyed title preparer preserved the covenants on a title transfer. Typically, in 30 years, a title would change hands 4-6 times so you would have to search those deeds.

Once a single parcel is expired by MRTA, the HOA (or 3 community individuals) can begin the revitalization process. If only one lot is expired, all the remaining lots still are encumbered by active covenants and can be preserved by a 2/3 vote. After the owners vote in favor of revitalization, submit the paperwork to the DEO and they will rubber stamp it as long as you have reasonably dotted the i's and crossed the t's. The checkbox standard is quite modest.

Note that the not-for-profit Association has not been affected by MRTA--only the Covenants and Rules & Regulations expire by operation of MRTA and that makes life problematic to have some "sovereign" parcels amongst the Covenanted.

I have seen smaller communities that have a small percentage of lots expire and the BOD went to each of the expired parcels to ask for voluntary agreement to re-encumber their parcel with the (expired) covenants. That new "contract" was then recorded and the property re-encumbered. This was partially successful and much cheaper than a full-on revitalization effort. I believe that a handful of parcels refused to "sign on" and would not accept the contract; thus, those lots are not subject to HOA property restrictions. The remaining lots that had NOT expired were simply "preserved" by the 2/3 vote of the board and the required filing per law. The HOA decided to suffer with the handful that refused the covenants. IMO a rational decision.

Once lots expire, the BOD cannot use the "preservation" process; it is null and void if attempted. This is VERY OFTEN screwed up by so-called HOA lawyers and recording a preservation over an expired lot is stupid and a....SLANDER OF TITLE. My HOA managed to slander hundreds of titles and thought they could get away with it and no one would notice or object.

They were wrong.
GenoS (Florida)
Posts: 4,276
Posted:
Art is exactly right and Gwen is one of the only people in the entire state of Florida whose word I would trust implicitly and without reservation when it comes to MRTA. She has slogged through the trenches and emerged victorious.
KarenM29 (Florida)
Posts: 10
Posted:
Wow very interesting. Thanks so much for your insight. I had seen the Swiss Cheese analysis in the Palm Beach case and it totally makes sense. I cannot believe the BOD would attempt to do this themselves knowing the covenents had expired on some lots and not tell the home owners. Then paper it with legal opinions that their course of action was correct to protect themselves.
KevinK7 (Florida)
Posts: 1,343
Posted:
This is true. In my case the restrictions started to expire and they filed a preservation act. They tried to enforce their restrictions as if nothing happened. Some homeowners (namely me) pushed back. They eventually acquired a new attorney to revitalize (incorrectly). They had tried to collect on assessments from the period after preservation and before revitalization but had failed to do so since there were no restrictions encumbering my lot.
KevinK7 (Florida)
Posts: 1,343
Posted:
I will also say that it seems many HOAs and attorneys down here seem to have the opinion that they can form their own opinions on the law and operate as if business as usual. I had notified (through myself and my attorney on multiple occasions) regarding MRTA and my warnings were not listened to.

It can be for a number of reasons a board decides to act in a particular way. Mine was more ignorance. An invalid restriction was filed years ago and then future BODs and attorneys accepted it as fact.
KarenM29 (Florida)
Posts: 10
Posted:
So if it is clear that some, but not all of the CC&R are expired, what should a concerned property owner do. Namely, if 3 owners want to get the revitalization process started, what exactly should we do? The BOD has said they do not want to get the community to vote because they believe the unilateral action of BOD only 2/3 vote in 2015 was effective even though it was done after some parcels' root of title was past the 30 yr mark. Do we contact someone locally at the county level to set up the process? Most homeowners in the community are not aware yet of the issue.

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