Can Club Owner Control Our Community?

Started by AndersH • 4 replies • 501 views

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AndersH (Arizona)
Posts: 30

Posted:

We are a 108-Condo Community in Arizona. When started in 1998 the Developer built our community and an adjacent resort. The developer's 19-page CC&R's dated April 1, 1998 states the developer's control of our community. Included in the developer's CC&R's is a paragraph 1.2 in Article I which reads: "Club Owner shall mean the Developer (name omitted) and all future owners and operators of the club property".

The Club now has a new owner and he has informed our association that he will be exercising his right to control our community according to the CC&R's written by the Developer on April 1, 1998.

The transition from Developer's Control to Homeowner's Control was made on January 17, 2002 according to the rules in the associations CC&R's from 1998.

Our questions are:
1. Are the CC&R's written by the developer when he was the owner of our community still valid and
2. Can the new owner of the Club exercise his right to control our community?

If any of you have had a similar situation, I like to hear from you.
Best regards,
Anders

SheliaH (Indiana)
Posts: 6,964

Posted:

I'm not sure this person could swoop in and take over everything (maybe this is referring to the resort next door?) However, you won't get the response you really need from the Internet because we can't see your documents and most of us aren't lawyers anyway. Go to your association attorney immediately for legal advice

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By AndersH on 01/27/2020 10:24 AM
Our questions are:
1. Are the CC&R's written by the developer when he was the owner of our community still valid and

In my experience, and barring more information, most likely and for the greater part, yes.

Quote:

Posted By AndersH on 01/27/2020 10:24 AM
2. Can the new owner of the Club exercise his right to control our community?

If there is verbiage about turning the board over to the members of the HOA, then I have doubts that the current club owner can exercise the sort of control it sounds like the club owner thinks he/she has.

This forum is a fine starting point. It will help you prepare to see an attorney. And you should see an attorney about this.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Oh yeah ... lots of background research, discussions with state and local government staff, then attorney.

Interesting situation.

TimB4 (Tennessee)
Posts: 21,061

Posted:

My initial response is yes.

Check with an attorney versed in contract law (as that is what the covenants are).

Then, if possible, gather support and amend your covenants to remove that section of the CC&Rs.

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