Adding outside land to existing lot inside community?

Started by FredF5 • 6 replies • 274 views

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FredF5 (North Carolina)
Posts: 14

Posted:

There is a buyer wanting to purchase some outside land that abuts the community lot she wants to purchase. The board received an email from the buyer's realtor stating the buyer has just finished surveying this outside property and asked if the board had any questions? I asked for clarification to make sure that the outside property wasn't going to be added to the community lot for sale (not liking that the buyer nor realtor came right out with stating that combining was their intent) Anyway, the realtor responded by stating that buyer does want to combine the lots. I can only assume it is to extend the setbacks for driveway or house placement. I replied stating that our covenants do not allow to change the boundaries of the community. Realtor replies back that she doesn't see anything in our CC&Rs that prohibits this but she will reread them and get back to me.

Does anyone know that if it doesn't specifically prohibit this in our CC&Rs that this can legally be done? If the developer had to put every no no in the bylaws-they could be hundreds of pages! Or, even if this was legal-wouldn't we require a vote by all owners as we would be changing the boundaries of the community. We don't want to reach out to our attorney yet on this until we hear back from the realtor.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Fred

The realtor is playing lawyer. Wait for her reply then turn it over to the associations lawyer.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

The HOA is not expanding. The new property should not fall under the HOA. The owner will not have to pay dues to the HOA for it.

However that being said, then it has to have boundaries. This is a case for a Real Estate lawyer to ask. Combining the lots together does not exclude from paying dues on the land with the cc&rs.

Former HOA President

AugustinD
Posts: 3,698

Posted:

First, let's be crystal clear about what the HOA must assume this realtor is doing: The realtor is zealously trying to close a deal. Anything the realtor says should be assumed to be false until proven true.

Second, I think you are aware of the following but, just to get it down and to be as clear as possible:

The boundaries of the HOA as defined on plats do not change just because an owner buys an adjoining lot that is not within the HOA's boundaries.

Nor do the covenants of the HOA and uses as given on the plat change just because an owner buys an adjoining lot that is not within the HOA's boundaries.

Your HOA might want to remind the prospective buyer that certain architectural changes must be approved by the HOA, pursuant to all covenants pertaining to architectural changes. If the buyer is thinking of doing anything that violates the covenants, including doing something that requires ARC approval but without receiving that ARC approval, the HOA will enforce the covenants. Period.

Third, on the one hand, the HOA does not want to interfere with a potential sales contract between a seller and an buyer. On the other hand, there's nothing wrong with informing (snapping back at?) the realtor: The HOA will enforce its covenants as written.>/b> Where the covenants grant the HOA the power to approve or disapprove architectural changes, the HOA makes no guarantees about what it will or will not approve until such time as it has thoroughly reviewed the application. Nor will the HOA consult its attorney on what it may or may not approve until such time as an owner (not a buyer) submits an application. Under these circumstances, it's simply not fair to ask current owners to pay for expenses attributable to non-owners.

Don't hesitate to bring your attorney in on this, especially if you think the realtor is encouraging a sale, and possibly leading the buyer on regarding what the buyer can do, that will leave the buyer discouraged. Be fierce about the covenants. That's the HOA's job.

BarbaraT1 (Texas)
Posts: 821

Posted:

In the hierarchy of documents, the plat comes first. The plat defines the boundaries of the association and what lots are subject to the CCRs. This is not a matter of interpretation or re-reading.

I'd be tempted to tell the realtor that her client would need to do all the research and pay all the costs associated with replatting the community to include this new lot, and to get back to you when they are ready to start that process. (Because it will be either prohibitively expensive or impossible).

But Augustin's advice is more practical.

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By FredF5 on 02/24/2022 8:40 AM
I replied stating that our covenants do not allow to change the boundaries of the community. Realtor replies back that she doesn't see anything in our CC&Rs that prohibits this but she will reread them and get back to me.

Does anyone know that if it doesn't specifically prohibit this in our CC&Rs that this can legally be done?

It's possible and even likely the boundaries can be changed but most likely, first, a vote of the owners would be required. Second the expenses of surveying and attorney fees have to be paid by someone.

Possible related aside: No way would I, as a director, be ready to vote to accept a survey done by the buyer (before he/she is an owner). It's just not right to do so, afaic. (I know at least one HOATalk member here disagrees.) And remember that said survey is going to involve at least two sellers (the seller of the HOA lot and the seller of the non-HOA lot), the buyer and the HOA.

BarbaraT1's advice sounds entirely practical to me. Not that it "snarls." Not that my advice "snarls." It's more that I think snarling backed up by facts (or vice versa) may be an appropriate response to what appears to me to be a possibly overly aggressive realtor looking to mess over a lot of people here. This would be all so the realtor gets his/her commission and can then ride off into the sunset while all he-- breaks loose legally between the HOA and the buyer.

Granted said legal wrangling may involve the realtor sooner rather than later. Or so one would hope.

Maybe tell this buyer to get in writing, and signed, any promises the realtor makes.

AdamL1 (UnitedStates)
Posts: 559

Posted:

as others previously mentioned....

1. the Plat is higher than CCR's in the hierarchy.
2. Just because someone owns an adjacent lot to HOA property does not make it part of the HOA.
3. If the desire is to combine this adjacent lot (legally combine, not just remove the fence/boundary between), then there is a lot of legal work to be done, including surveying, proposing a new plat map, the necessary voting and costs, etc.
4. Until the legal process to re-plat the HOA is complete, the CCR's/ACC/etc still apply to the original property in question, including whatever setback requirements there are.
5. if/when the adjacent property is added to the HOA, the CCR's would apply to it.

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