RobertS65 (Texas)
Posts: 4
Posts: 4
Posted:
Are assets held in the name of the HOA assets of the HOA, or are they the owners' assets, held in common?
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HOA Assets Held in Common?
Started by RobertS65 • 15 replies • 725 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Huh? Clarify what this is in reference to?
Former HOA President
SueW6 (Michigan)
Posts: 814
Posts: 814
Posted:
The HOA assets belong to the corporation, which is membership run.
If the HOA discovered oil on its common property, the members could individually benefit, but only with a vote if the membership voted.
No individual member could use common assets of the HOA as collateral for a loan.
If the HOA discovered oil on its common property, the members could individually benefit, but only with a vote if the membership voted.
No individual member could use common assets of the HOA as collateral for a loan.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
I agree with Sue (with comment on the oil, the vote would be amending the Covenants).
The assets (land, buildings, money, etc.) belong to the corporation.
That said, Condominiums may be different, I don't have a good basis to comment on this issue if you live in a condominium complex.
The assets (land, buildings, money, etc.) belong to the corporation.
That said, Condominiums may be different, I don't have a good basis to comment on this issue if you live in a condominium complex.
RoyalP
Posts: 1,104
Posts: 1,104
Posted:
Quote:
Posted By TimB4 on 01/12/2019 2:31 PM
I agree with Sue (with comment on the oil, the vote would be amending the Covenants).
The assets (land, buildings, money, etc.) belong to the corporation.
That said, Condominiums may be different, I don't have a good basis to comment on this issue if you live in a condominium complex.
I agree with Sue (with comment on the oil, the vote would be amending the Covenants).
The assets (land, buildings, money, etc.) belong to the corporation.
That said, Condominiums may be different, I don't have a good basis to comment on this issue if you live in a condominium complex.
The (common) assets belong to the Association, which may, or may not, be incorporated.
? splitting hairs ?
perhaps
but that is what the legal system does
RobertS65 (Texas)
Posts: 4
Posts: 4
Posted:
Thanks for the responses. I was referring to a Texas condo. Here is what I, informed by your responses and some more research, understand:
The apartments are owned by owners individually. All common elements, and limited common elements, together with say easements, are owned by the owners in common.
Assets such as furniture in the lobby, bank accounts, etc., are property of the Association which under TX law must be a nonprofit corp.
The apartments are owned by owners individually. All common elements, and limited common elements, together with say easements, are owned by the owners in common.
Assets such as furniture in the lobby, bank accounts, etc., are property of the Association which under TX law must be a nonprofit corp.
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
Quote:
Posted By SueW6 on 01/12/2019 2:01 PM
If the HOA discovered oil on its common property, the members could individually benefit, but only with a vote if the membership voted.
If the HOA discovered oil on its common property, the members could individually benefit, but only with a vote if the membership voted.
Actually, if oil were to be found, it would not provide to the HOA, as those rights were already signed off when the property was purchased.
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
Quote:
Posted By RichardP13 on 01/14/2019 1:26 PM
Posted By SueW6 on 01/12/2019 2:01 PM
If the HOA discovered oil on its common property, the members could individually benefit, but only with a vote if the membership voted.
If the HOA discovered oil on its common property, the members could individually benefit, but only with a vote if the membership voted.
Actually, if oil were to be found, it would not provide to the HOA, as those rights were already signed off when the property was purchased.
Belong
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Is there a question underlying your original one, Robert?
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By KerryL1 on 01/14/2019 1:41 PM
Is there a question underlying your original one, Robert?
Is there a question underlying your original one, Robert?
Inquiring minds want to know.
RobertS65 (Texas)
Posts: 4
Posts: 4
Posted:
A general question about who owns what. As for oil, mineral interests are real property. Whatever mineral interests were part of the property at the establishment of the condominium regime would be common elements and owned by the apartment owners in common. How would the lease for oil & gas exploration be handled? Probably by the management committee. I've never seen the situation, but it I guess that the ease bonus and royalties would be paid to owners individually. Now, the greater question is whether owners could convey such interests apart from their apartment. I don't think so.
SueW6 (Michigan)
Posts: 814
Posts: 814
Posted:
A friend has a condo that comes with docking privileges down at the lake, two blocks away.
He wanted to sell the condo but keep the docking privilege . He was told no.
Is this what you are asking?
He wanted to sell the condo but keep the docking privilege . He was told no.
Is this what you are asking?
RobertS65 (Texas)
Posts: 4
Posts: 4
Posted:
Docking privileges are a right appurtenant to a unit and presumably the declaration would not permit it to be sold separately. I was thinking of say a sofa in the lobby. Does it belong to the owners in common, or the association. I think it must be the latter.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
We have a lot of furniture & equipment in our twin towers condos' lobbies, party/meeting rooms, gym, billiard room, etc. They all are in our common areas. Our CC&Rs and our Rules & Regs only permit the board of directors to purchase new stuff or remove old stuff. Also in our Rules & Regs, no one may "donate" anything to our common areas --usually gym stuff they thought they wanted, but sometimes pieces of "art."
14 months ago an owners bamboozled a then-director into permitting her to "donate" an 12 foot tall artificial white Christmas tree to a lobby complete with purple lights, ribbons, ornaments and the PM looked the other way. Some residents of that tower adored it, some loathed it. The latter wrote to the board demanding that it enforce CC&R XXX & Rule x. They asked the board to also require our traditional green trees in our lobby, which the board did for 2018.
I think the main point is that the board is responsible for the HOA's common areas and makes decisions about them and the items in them.
14 months ago an owners bamboozled a then-director into permitting her to "donate" an 12 foot tall artificial white Christmas tree to a lobby complete with purple lights, ribbons, ornaments and the PM looked the other way. Some residents of that tower adored it, some loathed it. The latter wrote to the board demanding that it enforce CC&R XXX & Rule x. They asked the board to also require our traditional green trees in our lobby, which the board did for 2018.
I think the main point is that the board is responsible for the HOA's common areas and makes decisions about them and the items in them.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Robert
Several have asked what is the reason you started this? Is there an issue?
Several have asked what is the reason you started this? Is there an issue?
JeffT2 (Iowa)
Posts: 880
Posts: 880
Posted:
Quote:
Posted By RobertS65 on 01/14/2019 5:33 PM
A general question about who owns what. I guess that the lease bonus and royalties would be paid to owners individually.
A general question about who owns what. I guess that the lease bonus and royalties would be paid to owners individually.
The unit owners do own the property, but only through the legal structure of the condominium regime that is managed and represented by the owners association. Payments would go to the association, not individual owners. The unit owners gave that authority to the association when they purchased a unit that was part of a condominium. Owners would benefit indirectly by lower assessments.
Assets of the association, such as a couch, even if owned in the name of the association, are ultimately common elements of the condominium.
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