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Friend of mine lives in a neighborhood which has never had an HOA his deed says nothing about an HOA on it, but he got a letter from some law firm saying they are creating an HOA. He doesn't have any money to hire an attorney to look into it, but I always thought if you don't sign CC&R when you buy your home how can they force you to. Anyone have any experience with this?
What does the deed say about restrictive covenants?
I don't usually see HOA mentioned in a deed, but do see references to deed being subject to "All restrictions, easements, and covenants of record."
That would include recorded CCR's, which are appurtenant to the property.
A majority or super-majority of willing owners, depending on the terms of the CCRs, may be permitted to install an HOA in a community years after construction.
Friend of mine lives in a neighborhood which has never had an HOA his deed says nothing about an HOA on it, but he got a letter from some law firm saying they are creating an HOA. He doesn't have any money to hire an attorney to look into it, but I always thought if you don't sign CC&R when you buy your home how can they force you to. Anyone have any experience with this?
I would go find a lawyer who deals with this. Pay the consultation fee, bring all your papers to him and see what he says. Not signing the CC&Rs doesn't mean you are now immune to the formation of a HOA if those CC&Rs were in place when you bought. If there were no rules in place as to the future formation or current CC&Rs I dint think they can force you to join.
This is taken from the PA "Uniform Planned Community Act:"
§5201. Creation of planned community
"A planned community may be created pursuant to this subpart only by recording a declaration executed in the same
manner as a deed by all persons whose interests in the real estate will be conveyed to unit owners and by every lessor of
a lease, the expiration or termination of which will terminate the planned community or reduce its size."
This is probably the same for just about every state that recognizes private communities. If a PUD is planned where no PUD existed before, every prospective property owner in the proposed PUD must sign on to it.
Depends what the purpose and scope of the Association is. If there is common property or a common private road to maintain, then some kind of entity needs to be formed to accomplish that. And while participation isn't necessarily mandatory, there are lots of third parties, lenders, insurers, fire departments, utilities, who depend on the maintenance of the road or common property who have some power to require it.
There are three possibilities. One is that there are deed restrictions already (they "run with the land") and an HOA is being formed to enforce those deed restrictions (and possibly to also maintain common areas). In this case the HOA would be enforcing restrictions that already could have been enforced by legal action by individual owners.
Another possibility is that this is a voluntary HOA. In such a case there is no legal obligation.
I suppose a final possibility is that some owners are trying to give the impression that there is legal obligation when there is, in fact, none.
A lawyer is probably needed to figure this out. If the owner does not want to pay for a lawyer, violating restrictions and/ or not paying assessments would be a risky strategy. If there is a legitimate HOA fines and penalties can add up quickly and could be much more than the cost of a lawyer at the outset.
By the way, as always, remember the real estate laws are local.
We looked up what was recorded online we found "Deed of Trust" but it talks lot about his mortgage, insurance, maintaining the property nothing in there about "All restrictions, easements, and covenants of record". He is in between jobs right now he has no extra money to go see an attorney. He has been talking to his neighbors none of them want an HOA the neighborhood is over 35 years old I don't even think HOA's were even thought of back then. The letter talked about all kinds of rules you hear about with typical HOA's I thought it was funny way for a law firm to try and get an HOA passed by sending you a rule book what you can't do.
I told him best way to deal with it is to get 10-20 neighbors together and go door to door and just meet talk about the pros and cons just vote it down if majority don't want it. I think this idea is only a small number of neighbors who want it and they got some law firm to try and ram it though. People just ignore the vote and small minority will get it passed lot of times people have no interest in HOA meetings except retired folks run HOA's and go to jury Duty.
We looked up what was recorded online we found "Deed of Trust" but it talks lot about his mortgage, insurance, maintaining the property nothing in there about "All restrictions, easements, and covenants of record". He is in between jobs right now he has no extra money to go see an attorney. He has been talking to his neighbors none of them want an HOA the neighborhood is over 35 years old I don't even think HOA's were even thought of back then. The letter talked about all kinds of rules you hear about with typical HOA's I thought it was funny way for a law firm to try and get an HOA passed by sending you a rule book what you can't do.
I told him best way to deal with it is to get 10-20 neighbors together and go door to door and just meet talk about the pros and cons just vote it down if majority don't want it. I think this idea is only a small number of neighbors who want it and they got some law firm to try and ram it though. People just ignore the vote and small minority will get it passed lot of times people have no interest in HOA meetings except retired folks run HOA's and go to jury Duty.
"Deed of Trust" is NOT his deed to the property.
It is a recording of the loan lien on the property, naming the Trustee. It is the mortgage record.
Your friend, the Grantor, has granted that deed to the trustee, the Grantee.
You are looking for a Warranty Deed or a General Warranty Deed, in all likelihood.
That is the record of the seller, the "Grantor," granting title to your friend, the "Grantee."
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.
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?
Read the covenants.
They may stipulate that a majority of owners can form an HOA for the community.
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