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Many neighborhoods form "voluntary" HOAs. With these, once a property owner signs up, that house has to remain in the HOA upon resale. Also, if an owner doesn't want to join, if they sell, the house becomes part of the HOA as mandatory. This is a way to grandfather anyone out of the HOA costs if they don't want to be involved, but make it a mandatory HOA in the future beyond the initial voluntary status.
They can be written many different ways. Your friend might not be able to afford an attorney, but he needs to read the entire document they've put in front of him so he understands what is actually going on. We only have your assumptions here.
Many neighborhoods form "voluntary" HOAs. With these, once a property owner signs up, that house has to remain in the HOA upon resale. Also, if an owner doesn't want to join, if they sell, the house becomes part of the HOA as mandatory. This is a way to grandfather anyone out of the HOA costs if they don't want to be involved, but make it a mandatory HOA in the future beyond the initial voluntary status.
They can be written many different ways. Your friend might not be able to afford an attorney, but he needs to read the entire document they've put in front of him so he understands what is actually going on. We only have your assumptions here.
There are also voluntary HOA's where this is not the case; you either join or not. I've had several deals with houses in such voluntary HOA's and the seller was not a member and the buyer did not have to join. They usually have something like dues of $20 or so a year and have no teeth in them.
I also knew someone whose one street neighborhood formed an HOA with the sole purpose of getting the street on a certain water supply. Once that was accomplished, the HOA became nothing more than a social entity of the neighborhood whose regularly-scheduled "meetings" were parties at one house or another.
You need to find out what is going on with this. A letter to or conversation with the law firm who sent the letter, either from you alone or from you and several of your neighbors requesting a meeting to have it explained, might be useful.
There are also voluntary HOA's where this is not the case; you either join or not.
Because you like to argue with everything I write, I'm pointing out that I did say they can be written many different ways. The examples I gave in my post were just examples. There is no possible way to go over every single possibility as to how HOAs are created because there are "many different ways..."
Read the covenants.
They may stipulate that a majority of owners can form an HOA for the community.
Is the covenants a different recorded document? I can't find anything in the warranty deed other then one word "covenants".
I also told him he could get a group together and everyone puts in $20-30 enough for 1 hour meet with an attorney but as you know with attorneys 1 hour is just to get you hooked they will tell you how they can get win everything you are asking for, and all they need is $5000 retainer ill go look into this bill hours. $2500 into it they call you say "nothing I can do sorry".
covenants are recorded separately, yes a separate document. though oftentimes deeds will refer to them by their place in the deed books - like "see recorded covenants and restrictions in Deed Book _____ on Page _____"
covenants are recorded separately, yes a separate document. though oftentimes deeds will refer to them by their place in the deed books - like "see recorded covenants and restrictions in Deed Book _____ on Page _____"
Nothing in the deed says that it's only a word in the subject to: list
I checked a few other deeds my own, and my mothers both do not have HOA's built in the 1970s, and 80's they say the same generic line.
I found the warranty deed was 2 pages it does say subject to Current taxes and other assessments, reservations in patents and all easements, right of way, encumbrances, liens, covenants, restrictions, obligations, and liabilities as may appear of record.
So that means they can force him to join the HOA?
Quote:
Originally Posted by kell490
Nothing in the deed says that it's only a word in the subject to: list
I checked a few other deeds my own, and my mothers both do not have HOA's built in the 1970s, and 80's they say the same generic line.
While there is a commonality in terminology across state lines, and across regions, gotta mention that there are also variances between states and regions.
But, you need to dig deeper, it appears.
"...as may appear of record" is the indication that you need to search the county records for any additional recorded documents.
"...as may appear of record" is a catch-all phrase.
Sometimes here, in NC, the deed will cite the book and page of the covenants recordation. That is helpful, but it is just as common for the closing attorney to throw in the catch all and leave the burden of further research on the grantee or future buyers...
If you were in Wake County, NC, I could go to the Register of Deeds website, and pull up recorded documents by searching for the subdivision name as grantor.
They may be recorded as "covenants," "protective covenants," "restrictive covenants."
I.e., if I live in "Mildew Downs," I can search "covenants" granted by "Mildew Downs" as recorded by the developer when the subdivision was established.
We went through this in our old neighborhood a few years ago, we had covenants that were decades old but no HOA. You can go to the county and they can help provide info that you may not be able to find online.
I also contacted our state rep, their office stated there was no law that could force you to join a new HOA after you purchased your home. So, even if my neighbors agreed to create one, the troublesome neighbors or independents would not have to join. And in our case, they wanted to go after two particular neighbors.
I had a free consultation with a local real estate attorney as well.
Because you like to argue with everything I write, I'm pointing out that I did say they can be written many different ways. The examples I gave in my post were just examples. There is no possible way to go over every single possibility as to how HOAs are created because there are "many different ways..."
And all I did was point out some different ways that I had experience with.
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