Collecting Back Assessments and Dues

TishS (Washington)
Posts: 116

Posted:

Our association has sent out assessment letters and dues notifications every year. Now do to a very unusual situation, the HOA board has said paying the dues and assessments is optional (for everyone), a gift to the HOA. Although it is plainly stated in my CCR's I must pay all assessments and dues.

My concern is-If I chose not to contribute or gift my suggested amount to the HOA and a new board is put in place, how many years back can they collect. They have not made any formal statement to the general membership regarding this issue, it only came up in a court hearing.

RogerB (Colorado)
Posts: 5,067

Posted:

Tish, Forget about a verbal comment during a Court hearing. Request a writen notice that states in essence "the assessment amount is zero until further notification and payment of voluntary dues is optional." If in the future a new Board reestablishes an assessment they should provide written notice and a statement on the amount owed for the comming year only.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Tish,

If the HOA is mandatory then the CCRs should state that every member (meaning every property owner) is liable for paying yearly assessments -- no ands, ifs or buts about it. IMO, the BOD can collect as far back as you are delinquent. On the other hand if yours is a voluntary HOA then the CCRs may read that only members (mean those prop owners who have chosen to join) are obligated to pay yearly assessments.

What was the court hearing about and exactly what was the ruling?

TishS (Washington)
Posts: 116

Posted:

The hearing was to establish whether or not I have the ability to request a quiet title hearing. I am requesting a quiet title hearing is to establish whether or not my property is part of a mandatory Home Owners Association, If so what is the name of it, who belongs to it, and whether or not this group or another group has lien rights on my property.

I know everyone is immediately going to say "Check your CCR's and your deed!" Well it is not that simple..I know what my CCR's say and yes I see they have been legally recorded on my deed, but the association by the name that is listed on my CCR's says they are not a Homeowners association, but a community club, and they have nothing to do with my CCR's, membership is voluntary, and anyone can join.

"check the articles of incorporation" been there, done that. They also say mandatory homeowners association. Bylaws-mandatory homeowners association.

Hearing was two weeks ago, we are still waiting on a decision to decide whether or not I can have a judge look at the paperwork and tell me what is up. The "association/community club" are very much opposed to having my documents looked at by a judge for some reason.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Tish,

I certainly understand why you want to have this cleared up by a judge. What I don't understand is having a "quiet title" hearing. This type hearing is to determine who the legal owner of the property is. Is the type lawsuit your attorney suggested? If so, did he give a reason why?

From Nolo's Plain-English Law Dictionary

quiet title action
A lawsuit to determine who owns a piece of real estate and so "quiet" any disputes over the title. Such a suit arises when there is some question about title -- for example, uncertainty about the boundary, claims by a lienholder, a question about an old mortgage, or an easement that's been used for years without a recorded description. A quiet title lawsuit names as defendants anyone who might have an interest (including descendants -- known or unknown -- of prior owners). Notice of the action must be posted on the property and published in an approved local newspaper. If the court rules that the plaintiff is the rightful owner, it will grant a quiet title judgment, which can be recorded and will settle the issue of ownership. Quiet title actions are a common example of "friendly" lawsuits in which often there is no opposition. (See also: cloud on title)

TishS (Washington)
Posts: 116

Posted:

I wish I could fully explain this, but it is my understanding that the CCR's are now a cloud on my title. I could be wrong, this has been the most confusing thing I have ever had to deal with. It is a little different situation, most people try and get out of their CCR's I just am trying to find out what mine are so I can follow them, since my property is undeveloped I am suppose to submit my house design to the HOA board for written approval...makes it a little challenging if you cant figure out who they are and if they really exist. I dont want to find out they exist after I build my house! I am suppose to hear something on Monday, so I will post the results with any explanation I get.

TishS (Washington)
Posts: 116

Posted:

I wish I could fully explain this, but it is my understanding that the CCR's are now a cloud on my title. I could be wrong, this has been the most confusing thing I have ever had to deal with. It is a little different situation, most people try and get out of their CCR's I just am trying to find out what mine are so I can follow them, since my property is undeveloped I am suppose to submit my house design to the HOA board for written approval...makes it a little challenging if you cant figure out who they are and if they really exist. I dont want to find out they exist after I build my house! I am suppose to hear something on Monday, so I will post the results with any explanation I get.

TishS (Washington)
Posts: 116

Posted:

I wish I could fully explain this, but it is my understanding that the CCR's are now a cloud on my title. I could be wrong, this has been the most confusing thing I have ever had to deal with. It is a little different situation, most people try and get out of their CCR's I just am trying to find out what mine are so I can follow them, since my property is undeveloped I am suppose to submit my house design to the HOA board for written approval...makes it a little challenging if you cant figure out who they are and if they really exist. I dont want to find out they exist after I build my house! I am suppose to hear something on Monday, so I will post the results with any explanation I get.

TishS (Washington)
Posts: 116

Posted:

I wish I could fully explain this, but it is my understanding that the CCR's are now a cloud on my title. I could be wrong, this has been the most confusing thing I have ever had to deal with. It is a little different situation, most people try and get out of their CCR's I just am trying to find out what mine are so I can follow them, since my property is undeveloped I am suppose to submit my house design to the HOA board for written approval...makes it a little challenging if you cant figure out who they are and if they really exist. I dont want to find out they exist after I build my house! I am suppose to hear something on Monday, so I will post the results with any explanation I get.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Tish,

I'm not an attorney, but from what I've read a cloud on your title means there is a question as to who the legal owner of the property is. You can do a google search for "cloud on title" or "quiet title" and read the definition yourself. Whether or not there are CCRs attached to your property would be stated on the deed. It would say: subject to covenants, restrictions,etc.,etc. The deed will not say whether there is an HOA, much less whether mandatory or voluntary.

BTW, I think you are very wise to have this all sorted out b/4 you build on the property. If you should decide to sell and must take a loss it will be far less than if there were a house on the property.