quitclaim deeds

We are a homeowners association located near other homeowner associations. The previous owner of all of our streets filed bankruptcy. The court awarded our association, and only ours, 50K and the ownership of our streets via a quitclaim deed. Not wanting to accept liability and responsibility for our streets, the board of directors decided not to file the quitclaim deed in our county.

According to title companies and others who deal with titles, technically speaking the ownership of our streets is still in the name of the bankruptcy estate and will remain that way until we file the quitclaim deed. However, the attorney for the estate says that, no matter whether we file the quitclaim or not, the estate is no longer the owner. The bankruptcy case has been closed, finalized. No one can file any claims against the estate.

We have repaired our streets. We have installed “No Construction Traffic” signs. We have installed signs that state: “Private Property No Trespassing Violators Will Be Prosecuted PVHA”

Let’s say that someone hits a pothole and damages their vehicle or causes a wreck; if we install speed bumps and the bumps does the same damage.

Since we have not filed the quitclaim deed and if a street liability claim is filed against our association are we still liable?

Didn't you ask this same question before?

Steve,

It seems to me the previous owner should have filed the quit claim deed. IMO, only the property owner can deed his property to another party. Have you checked the Co. Recorder's records to make certain this quit claim deed has not already been filed? With regard to liability for an accident happening on the property in question, IMO, liability would rest with whomever the owner of record is.

Steve,

I'm not an attorney but my common sense tells me that the owner of record has the liability. If the bankruptcy court named your assn the owner, IMO, that only applies if the quit claim deed is filed. Until the deed is changed ownership remains in the name of the developer, or whoever owned the property when it was developed. Have you checked the Co. Recorder's records to see who the owner of record is on the property? Is the assn recieving tax bills?

Steve,

IMO, until the deed is transferred into the name of your assn you do not own the streets and shouldn't worry about liability ins. BTW, why does your assn want to own the streets? Is the BOD aware of the cost to maintain streets?

Our streets were built in the late 1980s. Cold pot hole patching by the original owner and our HOA has been the only maintenance during this period of time. We have 50K to dig up the bad spots and apply hot patches. However, the streets need to be resurfaced. The cost would be approximately $185,000.00.

As previously mentioned, this mess is a complex mess.

The main entrance to the golf courses has security guards. The main road, a three mile loop and an artery to clubhouse, is owned and maintained by the golf course owner. All HOAs connect to this main road.

The county stated that if they accepted ownership of our HOA streets, then the guard services would need to be eliminated; the main road would need to be county owned and maintained. The golf course owner stated that he would never relinquish control of his main road and would never open his road and courses to the public. The county has several other hurdles to cross but they are not worth mentioning.

Anyway, that is the short version of an 8-9 year story.

Thanks to everyone for the replies.