sub associations dissolution

Started by GregoryG7 • 5 replies • 667 views

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GregoryG7 (Florida)
Posts: 1

Posted:

Our Sub Association is considering a proposal to dissolve because of financial considerations and responsibilities that the Master Association is willing to a accept. There is very little information on how to accomplish this, especially so in that there is a property that needs be conveyed to the master. Any thoughts on how to accomplish this?

GenoS (Florida)
Posts: 4,276

Posted:

I think an attorney is where you should start.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By GenoS on 02/24/2020 1:26 PM
I think an attorney is where you should start.

Absolutely, this does not seem like a DIY project.

Escaped former treasurer and director of a self managed association.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Gregory,

I would first take a poll from the members and see if this idea is supported.

If you have the support, you will need the assistance of an attorney and work closely with the master association.
Your declaration will have to be amended to abolish the deed restrictions and transfer control of common area, funds and responsibility to the other association.

The Master Association will, at the same time, need to amend their declaration to accept control and place your development under their association and covenants.

Be careful what you wish for.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Our Sub Association is considering a proposal to dissolve

Just a word of advice........ probably never going to happen.

Yes, you need to start with a contract lawyer, or real estate lawyer. Probably charge you a great deal of money just to look at your docs and tell you it aint going to happen. Or they will lead you to believe it will happen, and it never happens.

HOA's are typically created because the town required it, common areas like roads to your home that need to be maintained, etc.

So there is a 1% chance you can make this happen and a 99% chance you cant.

DeidreB (Virginia)
Posts: 113

Posted:

We considered this once in a previous HOA that was part of a master. After a focused look at it we decided never to consider it again. There was too much concern about what we might accidentally "sever" or alter without even knowing it. We realized it would be very costly in terms of attorney fees and the risk of unintended consequences would still be there.

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