Dues expemtion?

Started by TomA1 • 6 replies • 1356 views

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TomA1 (West Virginia)
Posts: 1

Posted:

There are a few home owners in my park that are exempt on HOA dues account there was a notation of such in their deed. Does anyone have an idea of what this may be?

Also, My new next door neigbor was not notified by his realtor of any such dues. Is there anything that can be done about that? Is there anthing that needs to be signed before purchasing the property? Or is the bottom line you move in you must pay the dues?

Thanks,
Tom

MicheleD (Kentucky)
Posts: 4,491

Posted:

If there are some residents whose class of lot ownership entitles them to waiver of dues payments, that classification will be noted in your governing documents somewhere. You should check either your by-laws or your Deed Conditions, Covenants, and Restrictions. For example, in our CC&Rs, the original developer is exempt from paying dues as long as he is designated a Class A owner. However, his designation as a Class A owner expires once the Association is turned over to the residents, and then his lots revert to Class B ownership, which means any lot still in his name owes assessments.

It's unfortunate that the seller and/or realtor did not inform the new lot owners of the assessments/dues that are the responsibility of all lot owners. They still have to pay.

Unless they are of that invisible, unknown class that the others are claiming are noted in their "deeds." (tongue in cheek)

For the record, unless your HOA is somehow a voluntary one, which it may well be for all I know, sellers cannot promise in their deed conveyance waivers to dues/assessments to the HOA. That obligation runs with the land in mandatory HOAs and cannot be negotiated out of a sales contract.

GloriaM (North Carolina)
Posts: 829

Posted:

Tom:

I can hardly believe any Deed would have such an exemption. Please refer to your CCR's it should state that "no one" may exempt themselves from paying dues.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Tom,

Is your HOA mandatory (all owners must belong to the HOA and must pay assessments) or voluntary (members pay only if they wish to belong to the HOA)?

If your HOA is mandatory, it doesn't matter whether an owner was told about the assn or not, they are obligated to pay the assessment. Every owner should receive a copy of the CCRs, bylaws and any board enacted rules. All rules which must be followed are spelled out in these docs. Sometimes there will also be architectural guidelines which the developer has put together. In some instances these guidelines are put together by the A/C committee and or the BOD after the transition from developer to members.

BrianB (California)
Posts: 2,820

Posted:

one last option: A group of owners, years ago, voted to create a mandatory HOA for their lots. However, one or two lot owners did not wish to join, and for various reasons, these lots were exempted from participation (and thus, mandatory HOA status). It's weird, but possible, that some sweatheart deals could have been made to get votes, services, etc... If it were recorded that way on conception, they may well have it in their deeds (or conversely, the land owners who joined have it recorded on their deeds). Kind of a voluntary-mandatory HOA.

Follow the advice of the others: research, research, research... find out what the CCRs say, what the by laws say, and what the legal deeds say at the courthouse. bottom line, if it's not in black and white, it ain't so.

JS1 (Nevada)
Posts: 30

Posted:

I have known of developers of new home construction to pay the HOA assessments for a year or two - Those assessments would be paid at COE (Close of Escrow) and held as a prepaid for the unit, so if that is the case, follow the money. But as everyone else has check the governing documents, as CC&Rs are recorded against the land and since they run with the land, it doesn't allow for opting out without some pretty clear disclosures.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Tom,

Maybe when the park was first established, some sort of agreement was made, perhaps from something as simple as the water pipes going thru someone's property, or that person donated the land for the beach. Who knows? But it should be confirmed and noted in the treasurer's books. I am surprised that no one really knows why certain lots are exempt from dues.

Also, you need to contact any real estate company that hangs a sign in your park and let them know about your association and what will be expected for the new owner.

By the way are you volunteer or mandatory membership?

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