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Subject: Declarant refusing to create HOA despite divesting itself of all properties
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Author Messages
DaveC15
(Georgia)

Posts:3


06/27/2018 2:26 PM  
First, I have contacted about a dozen lawyers in the area and none are interested in HOAs. I am still looking, but I have questions.

As the title states, the Declarant (local bank) has divested all lot and stated they will no longer pay property tax on the common greenspace. He is willing to transfer it to our HOA, but we don't have one and it does not appear that

Based on the Declaration the Declarant retains the right to appoint or remove board members and officers until 1) two years after the final lot is sold or 2) the Declarant surrenders authority to the HOA board.

The GA Property Owners Association Act states this:

(b) Prior to the first conveyance of a property owners association lot, the declarant shall cause the first board directors to be duly appointed, the officers to be elected, and the organization of the association to be effectuated.

It appears to me that it was the Declarant's responsibility to create the HOA although there was nothing specified in the Declaration at what stage that would occur. It also appears to me that we cannot move forward with the articles of incorporation until 1) two years after the declarant sold the last lot (4 months ago) or 2) the Declarant surrenders authority via an executed amendment.

Does anyone have thoughts and/or experience in matters such as this?
DaveC15
(Georgia)

Posts:3


06/27/2018 2:31 PM  
BTW - Detached single family dwelling on 1/2 lot.
JohnC46
(South Carolina)

Posts:7812


06/27/2018 3:29 PM  
From what you say the Declarant (bank) is willing to surrender to the HOA but you say there is no HOA. I can only assume there are Covenants/Bylaws that can be used to create an HOA. A dormant HOA is not the same thing as a non-HOA. I assume your HOA is dormant and can be reactivated. My first suggestion is read the Covenants/Bylaws. Secondly see what documents (Covenants, Bylaws, etc.) were filed as in attached to your deed(s). The original Declarant should have been filed the HOA as an NC Corporation. Look there also.

Keep searching for a lawyer.
DaveC15
(Georgia)

Posts:3


06/27/2018 3:38 PM  
The Articles of Incorporation were never filed with the Secretary of State. A board was never appointed nor was a architectural design committee. Below is all that is stated in our declaration about the HOA.

Article I

1.1 At such time as the Declarant in it's sole discretion should determine it advisable, Declarant may cause to be incorporated the Groves at Oakland Parkway Homeower's Association, Inc (the "Association") with the powers and duties as set forth below.

1.4 Control by Declarant. Notwithstanding any provision to the contrary in this Declaration, or the Bylaws or Articles of Incorporation of the Association, Declarant herby reserves unto itself the right to appoint and remove and and all members of the Board of Directors of the Association, and any officer of the Association, until such time as the first of the following events shall occur: (i) two (2) years following the sellout of all Lots; or (ii) the surrender by Declarant of such authority to appoint and remove by express amendment to the Declaration executed and recorded by Declarant.

I'm still looking for an attorney. So far the only attorney I've found is the declarant's attorney.

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Forums > Homeowner Association > HOA Discussions > Declarant refusing to create HOA despite divesting itself of all properties



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