QUESTION
Can a developer buy 41 lots in a subdivision that has a Homeowners Association (HOA) and not be under the HOA?
Asked on Jul 29th, 2011 on Real Estate - Georgia
More details to this question:
Lots were FDIC lots subsequent to bankruptcy. What can I as a homeowner ask for to prove the buyer is legally not a part of the HOA. There are only 3 homes in this development and then the original developer went bankrupt. We bought our home from the bank. Then the bank went under and the land converted back to the FDIC. It is the FDIC that sold the remaining lots to this new developer. The new developer wants to merge new covenants with the current HOA covenants. I believe the new developer should be under the HOA covenants in place when he purchased the lots and the FDIC should have insured that happened.
1 ANSWER
Business Law Attorney serving Atlanta, GA
at
Stout Kaiser LLC
Update Your Profile
To be a part of the HOA there would be a recorded Declaration in the real estate records that described what property is included under the HOA. First, is there a Declaration recorded? A real estate attorney could search title and confirm it or not. Second, if the bank loan was recorded prior to the Declaration or the bank did not consent to the Declaration then a foreclosure would wipe out the Declaration. If the Declaration is in place then a new developer could follow the provisions of the Declaration to amend the Declaration. Depending on the terms of the Declaration the new developer may be able to step into the shoes of the old developer and have some unilateral right to amend the Declaration.
Answered on Apr 05th, 2012 at 2:04 PM