Cart before the horse in Texas

Started by GeenaS1 • 17 replies • 566 views

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GeenaS1
Posts: 53

Posted:

I’m curious to know if homeowners should hire a property management company a couple of years after the development period is over and prior to establishing an hoa and before bylaws, rules, regulations, a fine schedule are created?

MichaelS56 (Minnesota)
Posts: 858

Posted:

What does the Texas law say about being a nonprofit and becoming incorporated? What would you be for the two years in which you are not an HOA nor builder controlled.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Do you know what a Property Manager does and will you actually need one? A HOA doesn't necessarily equal paying a PM to do the work. Some HOA's are able to self-manage. We self managed but hired an accounting firm. So what is going to be your situation when the times comes?

Former HOA President

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By GeenaS1 on 04/06/2021 1:51 PM
I’m curious to know if homeowners should hire a property management company a couple of years after the development period is over and prior to establishing an hoa and before bylaws, rules, regulations, a fine schedule are created?

Create your HOA using a qualified attorney to guide you through the process you describe.

After establishment of the HOA can the board, with its dues-making ability, establish the operation and generate the cashflow to pay the management fees and daily operations not to mention establish rules, fines, etc.

I can't see how you'd hire a manager with no way to pay or am I missing something?

GeenaS1
Posts: 53

Posted:

Thanks everyone. I just wanted to make sure I had not lost my mind. This is what my neighbors have done which I deem crazy. They are operating illegally and today I was contacted anonymously with some interesting information about a board member. My home is going up for sale next week thankfully.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Keep in mind that an HOA is created by the deed restrictions (CC&Rs).

The HOA may or may not be active or incorporated, but it has been created once the deed restrictions are filed.

GeenaS1
Posts: 53

Posted:

That’s not the case in Texas. Deed restrictions can exist with no hoa planned.

AugustinD
Posts: 3,698

Posted:

Quote:

As a matter of law, the legal powers that the homeowners possess (over their fellow homeowners) derives strictly from what the CC&Rs say, possibly informed to some extent by Texas's HOA statute and nonprofit corporation statute. If the CC&Rs say nothing about assessments, hiring a property manager, the establishment of a HOA and so on, then the homeowners (or a sub-group of homeowners) have no authority over assessments, hiring a property manager, forming a HOA, and so on.

If you want substantive answers, then in my experience at this forum, quoting here exactly what your neighborhood's CC&Rs say on these subjects is the place to start.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By GeenaS1 on 04/06/2021 8:30 PM
That’s not the case in Texas. Deed restrictions can exist with no hoa planned.

Correct, but if there is an HOA, as Tim said, it should be defined in the CCRs. For example, my association has this in the CCRs:
ESTABLISHMENT OF HOMEOWNERS" ASSOCIATION OF XXX, INC.. There shall be established a homeowners'
association, hereinafter sometimes referred to as Association,
composed of record owners of each lot. The Association shall be
the XXX, INC., organized
and existing under the laws of the State of Florida. The
Association shall administer the operation and maintenance of the
common areas and property of XXX and other duties
hereafter provided for. The Association shall have all the
powers and duties set forth in this Declaration and in the
Articles of Incorporation and By-Laws and as granted by the laws
of the State of Florida to non-profit corporations.

It goes on with more detail, but you get the gist. If the CCRs don't establish an HOA, then you are correct, there can be CCRs/Deed Restrictions without an HOA.

Escaped former treasurer and director of a self managed association.

GeenaS1
Posts: 53

Posted:

We don’t have cc&r’s. Just a few clowns playing bossy pants.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

How do you know there are not any CC&R's? Have you gone to the courthouse?

Former HOA President

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By GeenaS1 on 04/06/2021 10:46 PM
We don’t have cc&r’s.

I think for land in the last 40 years or so to be sold without Covenants would be highly unusual, especially where there is a developer involved who must of course satisfy city or county planning laws to get approval to build. The latter laws usually involve the imposition of covenants. You might want to check on this with your County Clerk (who would have any such covenants in the official county records) or your sales documents.

Though again, the mere existence of covenants does not necessarily mean a HOA et cetera is required.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Note that CCRs can have different names, Deed restrictions, master deed, etc.

Escaped former treasurer and director of a self managed association.

GeenaS1
Posts: 53

Posted:

Went to county clerk and was told we have no deed restrictions or cc&r’s.
Title company said same thing.
There’s absolutely nothing on file encumbering my deed but that isn’t stopping the fools from wanting to enforce a mandatory hoa.

GeenaS1
Posts: 53

Posted:

Quote:

Posted By DouglasK1 on 04/07/2021 8:30 AM
Note that CCRs can have different names, Deed restrictions, master deed, etc.

There is a plat on file just no covenants. There are no common areas.

TimB4 (Tennessee)
Posts: 21,059

Posted:

If I were you, I would spend some money to have an attorney write a letter on your behalf explaining that a through review of property records indicate that there is no HOA authorized and any attempt to include your property in one without your written approval would be met with legal action.

In fact, gather some neighbors together, share the cost and have that letter written to cover all of you.

AugustinD
Posts: 3,698

Posted:

GeenaS1, thank you for updating the forum and doing so promptly. I think responding to people's requests/suggestions really helps incentivize folks here to keep participating.

Quote:

Posted By TimB4 on 04/07/2021 5:56 PM
If I were you, I would spend some money to have an attorney write a letter on your behalf explaining that a through review of property records indicate that there is no HOA authorized and any attempt to include your property in one without your written approval would be met with legal action. In fact, gather some neighbors together, share the cost and have that letter written to cover all of you.

I think that what TimB4 wrote is a well-written legal letter all by itself. I would consider sending it to the neighbors who have gotten out of hand. If you take the latter route, then mail the letter certified mail, return receipt requested.

If the response from your neighbors is legally aggressive, then you can hire an attorney.

Here's a slightly edited version of what TimB4 wrote:

Dear Sirs and Madams,

A through review of property records indicates that there is no homeowners' association authorized. Any attempt to include my property in a homeowners' association without my written approval may be met with legal action.

Sincerely,

GeenaS1
Posts: 53

Posted:

Thank you all for your responses and advice. I’m actually selling my home thankfully. I was just curious to see what others thought of this situation. It seems very crazy to me but it soon it won’t involve me.

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