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Texas lot owner wants to plat 4 subdivision lots into 1 to avoid hoa dues

Started by LindaP17 • 11 replies • 1279 views

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LindaP17 (Texas)
Posts: 1
Posted:
New owner bought 4 lots and wants to replat lots into 1 lot to reduce hoa dues.
Currently 4 lots dues 3,600 annually. New owner wants to reo
Plat lots to only pay 1,000 annually.
26 lot community. Annual dues keep up subdivision. This would cause hoa budget issues. Can this be approved in texas
TimB4 (Tennessee)
Posts: 21,059
Posted:
Having divided land in TX, combining land is probably possible via the property office.

How such combination of lots would affect the billing process is something the HOA should consult with their attorney on.
CathyA3 (Ohio)
Posts: 6,299
Posted:
I'm going to guess a bit here...

If the HOA's CC&Rs specify the number of homes/lots in the HOA, then I expect that the entire membership would have to vote on this - because this one owner wants to unilaterally change the terms of a contract. If approved, the CC&Rs would have to be re-written. And approval percentages for something like this can be high, such as a super-majority or even unanimous approval.

It's also not a good assumption that his assessments would be reduced. The HOA's expenses are what they are - the cost of maintaining commonly owned areas don't magically decrease because one guy pays less. Everyone's assessments would rise, which is why everyone gets a say in whether this flies or not.

I agree with Tim that this needs a lawyer's opinion.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Do your docs say anything about subdividing? My last HOA CCRs specifically prohbited it.
Escaped former treasurer and director of a self managed association.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
This is not about SUB dividing.

Agree this is complicated enough to require legal opinion and perhaps ruling in court.

I might also have issues with the combined piece of property being substantively different than the remainder of the community?
KellyM3 (North Carolina)
Posts: 2,239
Posted:
I bet the HOA legal documents address this issue clearly and that the owner will pay the dues on multiple lots as define by the original community plat. A court case would be ridiculous if the original documents are competently written.

That said, I'd ask as well if I'd bought multiple lots.
BenA2 (Texas)
Posts: 1,273
Posted:
There is a Texas Court of Appeals case that says you cannot replat two lots into one to avoid paying dues/assessments on both. Walton v. Midland Mira Vista Homeowners’ Ass’n, No. 11-12-00214-CV, 2014 Tex. App. LEXIS 10492 (Tex. App.—Eastland Sept. 18, 2014, no pet. h.).

Essentially the court ruled that the assessments are based on the original plat for the development and replatting two lots into one did not relieve the owner of paying two assessments.

It's a good idea to consult an attorney before taking any action.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KellyM3 on 02/04/2021 11:09 AM
I bet the HOA legal documents address this issue clearly and that the owner will pay the dues on multiple lots as define by the original community plat. A court case would be ridiculous if the original documents are competently written.

That said, I'd ask as well if I'd bought multiple lots.

This is far from the first time this has been discussed though most want to combine just two lots. It is my opinion/experience says they would be paying dues on 4 lots. With that said, I expect the person wanting to such might legally fight it so I advice the BOD to have their lawyer look at the situation before saying this.
CD6 (Texas)
Posts: 34
Posted:
We are in Texas. Our CC&Rs and all documents state
"originally plated lots" so regardless if they are combined
with the county, three lots are still three lots with three
assessments due annually.
There is no building across lot lines without a release of easement
from a third party that owns them.
Most combine lots to help on taxes with Homestead Exemption.
BobD4 (up north)
Posts: 1,002
Posted:
Quote:
Posted By LindaP17 on 02/03/2021 8:57 PM
. . . bought 4 lots and wants to replat lots into 1 lot to reduce hoa dues. . . . Can this be approved in texas

Best term may be "merger" or "amalgamation".

Check your Declaration for amendment platform, as well as jurisprudence cited above.

Cross-covenanted communities - where created rootdeed sale by rootdeed sale - otherwise can be seen as bargain-making based on X number of lots dragging along resultant number of debtors accepting the obligations & expenses. Lenders would also have a right to expect such fundamentals subject to the Declaration-amending platform if any.

This scenario happens to be one valid consideration if the covenants happen to be a-heading towards expiry by MRTA ( a.k.a. "expiry by operation of law" ) in some jurisdictions. Where and IF the CCRS's go, lot-splitting may be facilitated. ( Seeing this possible on my own horizon with one of North America's harshest MRTA environments. ) Mere "boundary adjustments between adjacent lots" here required a consent process that should have been unanimous & documented
ChadH3 (Alabama)
Posts: 50
Posted:
I'm usually not one to suggest rushing off to talk to a lawyer but in the case you probably need to if it would be that significant of an impact on your HOA unless you think you can work it out with the homeowner before hand. Our covenants specifically address subdividing lots but not merging them together. I would think if yours are the same, you'd probably have a hard time challenging it.
BobD4 (up north)
Posts: 1,002
Posted:
Anyone thinking merger or amalgamation - short term about dues - respectfully should also consider whatever the implications for their own possible future "severances" ( That's if they ever want to do such to raise cash later in life ).

In other words : if they get their short term wish, will they someday regret it bigtime if later in life they want to sever portions / return an amalgamated lot to some or all of its original smaller components ? How costly & complex would that be even in Texas ?

Further, IF the merger-seeking owner's jurisdiction implies that even MERE identical ownership of adjacent parcels MIGHT - might - trigger undesired assumptions now under planning law and later under US Federal tax law, it might be wise to check that out professionally beforehand . . . .

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