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ThomasG7 (Florida)
Posts: 2
Posted:
The CCRs for an HOA in Florida provides for annexation of property by two-thirds of members except as provided in another section titled "Additional Phase". The section on Additional Phase gives the declarant the right to annex any additional land to the terms of the CCRs without the consent of any party of the existing HOA. The document simply requires the declarant to file an ammendment to the CCRs with the county.
It is my understanding that the original declarant had property divided into two phases. The second phase has remained vacant with only public utilities for years. Another adjacent property of 4 homes was developed by another builder who owned the adjacent property. Prior to the selling of any homes in the adjacent property, the declarant annexed the property with an ammendment that included the consent of the owner.
The owner sold one unit and lost the other 3 to the bank. These three units were sold years later, one at auction, two by private sales from the bank. The existance of an HOA was not disclosed to the buyers until after closing documents were signed. The ammendment annexing the property was not filed in a way that made the annexation clear in a property search.
So now I am looking at how to proceed to get the property out from under the HOA. Was the annexation legal? Can the declarant annex any land? Given that the land was not part of a planned additional phase, does that matter in how it was annexed (declarant vs member vote)? Since the ammendment was not filed with the county in a way that cross referenced the annexed property, does that invalidate the annexation in some way? Is the bank that sold the property liable for not disclosing the HOA (the bank had been paying HOA dues)? Is the title company somehow liable for not disclosing the deed restriction soon enough? Without a specific clause in the CCRs for de-annexation, is it possible for the owners of the 4 properties to remove the deed restriction? Any thoughts on this subject would be appreciated.
GlenL (Ohio)
Posts: 5,491
Posted:
All valid questions for an attorney.

Studies show that 5 out of 4 people have problems with fractions
LarryB13 (Arizona)
Posts: 4,099
Posted:
Thomas:

My Association in Arizona consists of many different units that have been annexed since 1996. Last time I looked we were up to 37 units.

The declarant can add additional units per the original CC&R's by annexation. All 37 of our units operate under the same set of CC&R's. The existing members of the association have no voice in whether property is annexed by the declarant.

The declarant can annex his own property or property owned by others with their consent. The declarant cannot unilateraly annex someone else's property without their consent.

From what you described, it sounds like the annexation of the adjacent property with four lots is valid, but you would be best to consult an attorney for a more informed answer.
PetunkaM (Florida)
Posts: 1,009
Posted:
In all honesty, I have no idea what annexation of HOA property is. I am only familiar with annexation of government properties. Would you please explain what it means?

PS: No amendments to the covenants are valid unless recorded.
ThomasG7 (Florida)
Posts: 2
Posted:
Annexation is basically just adding additional property/lots/units/etc to the property/lots/units/etc that are already covered by a set of CCRs. Once the property is annexed, it is subject to all the restrictions in the CCRs. Thanks to everyone who replied.
PetunkaM (Florida)
Posts: 1,009
Posted:
Thomas,

Well, what you are describing is quite rare. I assume you do not want to have anything with the original development Phase I and II. Makes sense to me.

β€˜ It is my understanding that the original declarant had property divided into two phases. The second phase has remained vacant with only public utilities for years.’

You can tell by looking at the legal description of the land (Plat) describing the original development. You can probably access it on line. You may also want to check if the original Plat was amended to include your property. That, I think is also important.

'The amendment annexing the property was not filed in a way that made the annexation clear in a property search. So now I am looking at how to proceed to get the property out from under the HOA. Was the annexation legal? Can the declarant annex any land?'

I am not sure what you mean by the property issue search? Do the original covenants give the developer the right to annex ANY property or was that also an amendment? You imply the former. One would have to read all the covenants and the amendment(s) annexing your property to determine if it was done β€˜legally’. There should also be some agreements between the two developers. And, it would not hurt to check the Articles of Incorporation.

As others have stated, to get from under the HOA now would could require legal intervention and any good property attorney would tell you if dissolving the annexed property is possible. But, I would start with the Department of Community Affairs in your county or in Tallahassee just to see if they offer any free advice. Get as much info as you can from the public records and organize it in chronological order. It may tell you a lot and it can also save you money when talking to the attorney.

The quit claimed deeds can sometimes turn out to be a problematic.

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