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Posted By MelissaP1 on 12/22/2020 8:49 AM
Thank you "Tim Translates". LOL! Have a Happy Holidays!!!
In brief original developer filed a deed restriction naming our HOA, in 1999. Dec2003 first section was completed we bought the last house in it. Then new developer bought out the rest of the lands for sections 2 through 7, before the 1st developer could. 2nd developer then finished 2nd section and attempted to start handing over HOA to the community.
Somewhere between 1999 and 2004, the 1st developer decided to cancel his HOA, we suspect because a huge home building company dirty tactics of taking the rest of the lands and used his plans from his original ideal for his community.
17 days after the 5 yr HOA business expired after several warnings by the state, the new developer hired a property management company and tried collecting dues.
Then it started building sections 3 and 4. Us in section 1 never been told or signed any acknowledgment, I noticed documents errors, in the 1st developers recorded deed that was filed in with the purchase of the first section lands from a farmer, it was not filed separately.
Then I noticed the states business license had serious errors also, like wrong city and county and 2nd developer did not assume being the agent and the 1st developer pulled the HOA business license after state threatened to cancel it for lack of an agent and approaching that first 5 year time line.
We just assumed the 1st developer refused to hand over his HOA, after the 2nd guy pretty much bought the rest of his lots out from under him.
As original cc&r, specifically states the 1st developer has to own 1 lot, before he can start transferring the HOA over to his community.
The critical issues were, HOA was not formed properly by law and procedures, due diligence was not preformed by 2nd developer that the original HOA start up was going accordingly to law. No rectifying was done to bring in the 1st section into compliance before the first 5 yrs. By just making proper notices and correcting all lots in 1st section.
So basically we got lucky getting out of a HOA nobody informed us about except the 2nd developer when he assumed a ithout bothering to check first, he must of just saw the first developers cc&rs in recorders office, obtained our house was built by the 2nd developer in section 1, ours was the last lot to been sold, the original cc&r never mentioned other sections in it. Some how 2nd developer tried to start it after his 1st section was completed.
All we did was state that there were numerous defects in the original document of the cc&r was vague it was just a boiler plated language and not recorded properly, 2nd major issue not 1vsingle lot signed and acknowledgement they were aware of a deed restriction and joining HOA or future one. 3rd state canceled the Governing documents of the 1st developer after he waited till last day he could to file a response and in it he just quit lol.
I just wonder how many other HOAs are like this, that nobody fact checked to make sure it was a legal HOA and they all just agreed and joined it not knowing it was never legal but they didn't follow the laws and could had not bothered to join a rouge HOA.
What was funny was our house was built by 2nd developer. He didn't even mentioned a HOA. We only found out about it once we got our first HOA dues and in a 2 years arrears of it. I just did googling in Ohio, how a HOA is formed and steps it must complete and statues of limitation applys. And our section pointed out this collection was attempted civil violations, I just called it attempted wire fraud, racketeering, fraud, attempted title fraud, cause not 1 lot had a hoa included in the title search and many other allegations.
After 2 months the property management after due diligence agreed on our concerns. Then a few years later the HOA new management company came at us again, this time using a deceptive last words that was high lighted and under lined, By signing this document you are agreeing to voluntarily join our HOA. Lol this was after basically threatening us with civil prosecution. Again we just sent this new company the same documents along with that HOAs first try at our section. So yaw its confusing. But simple same time.
There are laws a builder must follow, I tell others research your HOA best place is in your recorders office that has CC&Rs there and any changes to them over the years. 2nd place is with your states business licenses. The 2nd builder has to assume control of the business license, which never happened in our case.
And as states are beginning to crack down on HOA abuses, they are now allowing you to get out of them, if you can prove serious defects in them and A ILLEGAL HOA is a sure firecway to disband it, if its was never legal in first place and no lotowned has reviewed their HOAs for serious legal ddfects.