Covenants expired without notification to BOD

Started by TerryG1 • 2 replies • 1585 views

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TerryG1 (Florida)
Posts: 11

Posted:

Our BOD just found out that our Covenants and Restrictions expired OVER two years ago!We are in Florida.

We have a management company and attorneys, however, it was by chance we found an old document stating we should have passed a resolution to preserve our covenants back in 2010.

NOW, we are having to hold the meeting we didn't have to begin the process to REVITALIZE the covenants! If the BOD would have received notification before 2010 and the meeting took place, we would not be looking at a long and EXPENSIVE process of having to have title searches and have the majority of our members agree to revitalizing the covenants.

Our HOA has not had a quorum in decades and runs rather smoothly. This process will cause a financial burden.

Anyone have a similar situation? Did the management company absorb the costs since they dropped the ball? What if our attorney dropped the ball and didn't advise the management company?
Would maintenance fees collected in the last two years be legal? What if we rented out a foreclosure house? Was THAT legal?

What if we just let things alone and did nothing? We have ONE meeting a year and no one shows up so to get a quorum would be difficult. Is the HOA legal?

What a mess!

LarryB13 (Arizona)
Posts: 4,099

Posted:

Depending on the Florida statutes, it might even be more trouble than you think.

I understand that there is a law in Florida that effectively terminates CC&R's after some length of time unless the owners affirmitively agree to continue. I am not at all familiar with it so I do not know what the trigger is that ends the CC&R's.

The problem that might arise is whether you can reinstate the CC&R's without 100 percent of the owners agreeing to do so. In my state there have been several court opinions holding that 100 percent must agree, but we have no law similar to the Florida statute that terminates CC&R's. Is there something in the Florida statutes that puts the number who must approve at less than 100 percent?

TimB4 (Tennessee)
Posts: 21,047

Posted:

Terry,

What is the exact language that are in the covenants which makes you think they have expired (it might just be a mus-interpretation)?

What common elements must the Association maintain?

As Larry pointed out, covenants are considered a civil contract. A contract can not be put in place unless all parties agree. Therefore, if the covenants have truly expired and someone doesn't want them placed back onto my deed, you can't force them to agree to it.

I think you already have a financial burden in just seeking legal opinions on your options.

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