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Subject: No CC & R's, no legal right to due's collection?
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Author Messages
GeorgannM
(Louisiana)

Posts:5


12/28/2017 8:07 PM  
My home is in an upscale neighborhood of a retirement community. I was told when I bought the house that there is an HOA and they have billed me for annual dues. But recently I became frustrated with conditions in our subdivision so I did some investigating and discovered they do not have a BOD or CC&R filed at the courthouse. They have collected almost $100,000 over the last 20 years from residents but have never provided a budget or a financial report or had any association meetings. Is this legal?
TimB4
(Virginia)

Posts:15823


12/28/2017 8:15 PM  
To determine if the Association has a legal right to collect assessments you will need to seek the advice of an attorney who can do a full records search for any deed restrictions. You will likely need to fight this issue in the courts, another reason to seek out a legal opinion.


If there are no deed restrictions and the streets are public, you may have solid case.

For a solid answer, you will need to ask someone with access to your governing documents, property records and have a good working knowldege of property law.
BenA2
(Texas)

Posts:521


12/28/2017 9:22 PM  
If there are no CC&Rs filed, how do you know they exist? Typically, your title company bases that information on documents filed with the city or county.
GeorgannM
(Louisiana)

Posts:5


12/29/2017 5:46 AM  
We were told at closing there was an HOA and we get an annual dues bill. I talked to the developer, she told me that there are no Cc&R filed at the court house. There is no board and no meetings.
TimB4
(Virginia)

Posts:15823


12/29/2017 7:00 AM  
Ignore what people have said.
Go check for yourself (trust but verify).
BenA2
(Texas)

Posts:521


12/29/2017 7:37 AM  
Posted By GeorgannM on 12/29/2017 5:46 AM
We were told at closing there was an HOA and we get an annual dues bill. I talked to the developer, she told me that there are no Cc&R filed at the court house. There is no board and no meetings.




I would definitely talk to an attorney but generally, if CC&Rs exist that say you are responsible for assessments, then you are responsible for them.

It may just be semantics that is causing confusion. Many people use the term HOA for any subdivision that is controlled by CC&Rs and has assessments but you do not have to have an HOA in either case . For example, there is a subdivision near me where the title companies list as having an HOA but one has never existed because it is still under development. HOA is just a generic term that some title companies use whenever there is an assessment and deed restrictions.

DouglasK1
(Florida)

Posts:1153


12/29/2017 8:16 AM  
Posted By GeorgannM on 12/29/2017 5:46 AM
We were told at closing there was an HOA and we get an annual dues bill. I talked to the developer, she told me that there are no Cc&R filed at the court house. There is no board and no meetings.


If the developer is still in control, then the developer sometimes acts as the board, and no meetings is also common under developer control. I certainly wouldn't take the developers word for there being no recorded documents. In many jurisdictions, CCRs, deed restrictions, etc. are available from the county online. In my county, at the comptroller's office. You should also look up the plat and see if there is anything there.

Tim's advice in his first post is spot on. Certainly if you are considering stopping paying assessments, getting a legal opinion first would be a good idea because it could turn out to be very expensive to find out you were wrong after stopping the payments.

Escaped former treasurer and director of a self managed association.
KerryL1
(California)

Posts:5388


12/29/2017 8:30 AM  
I agree with Tim, Ben & Douglas.

In addition, if there is no Board or formal Association, to whom do you ay your dues??
GeorgannM
(Louisiana)

Posts:5


12/29/2017 9:00 AM  
I have checked at the courthouse and there is none. We pay dues to the developer.
GeorgannM
(Louisiana)

Posts:5


12/29/2017 9:02 AM  
And the developer TOLD me there are no CC&R
DouglasK1
(Florida)

Posts:1153


12/29/2017 11:55 AM  
Posted By GeorgannM on 12/29/2017 9:02 AM
And the developer TOLD me there are no CC&R



Have you asked the developer what authority they have to collect dues?

Escaped former treasurer and director of a self managed association.
GeorgannM
(Louisiana)

Posts:5


12/29/2017 12:35 PM  
No, not yet.
DouglasM6
(Arizona)

Posts:724


12/29/2017 2:12 PM  
you need to talk to an attorney. The laws of your state may vary from those of the people giving opinions here. You may end up in a legal fight with the developer. What worries me is that you are paying the dues to the developer. That means developer controlled to me. That is an entirely different animal!
KerryL1
(California)

Posts:5388


12/29/2017 4:44 PM  
I agree with Douglas, Georgeanne.
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Forums > Homeowner Association > HOA Discussions > No CC & R's, no legal right to due's collection?



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