Question:
Our HOA has a potential buyer of a vacant lot within our subdivision. The buyer also is purchasing 1.5 acres outside of the subdivision that adjoins the lot within the subdivision. He has requested the Association to consider the vacant lot within the subdivision and the 1.5 acres outside of the defined boundaries as one parcel subject to all of the Association’s covenants.
What issues do we have to consider surrounding the annexation of a parcel? Are there options to allow the buyer to purchase both lots but not annex the lot outside of the subdivision boundaries?
– Thomas
Answer:
Hi Thomas,
There are several issues or considerations you may need to think about.
1. Annexing a parcel of land may require the consent of all the homeowners in the HOA. We suggest checking your HOA’s governing documents as they may dictate how homeowners can provide consent by a majority or supermajority vote. The governing documents may also indicate if annexation is permissible.
2. Annexing a separate property may require your HOA to amend its governing documents that define property lines. The amendment may also need a majority vote from the homeowners in accordance with the HOA’s governing documents.
3. Annexation may be out of the HOA’s scope of responsibility. The governing documents may outline the HOA’s mission. Some HOAs are only required to maintain common areas while others may have broader responsibilities to protect the health, happiness, safety, and life of the homeowners. Regardless, the HOA may need to consider its mission as stated in the governing documents. Otherwise, the HOA may face potential lawsuits that accuse them of acting against their mission or outside of their scope of responsibility.
4. The process may be more complicated if the adjoining lot is also part of a separate homeowners association. In this case, you may need the consent of the HOA members from both communities. If things do not go as planned, you may not be allowed to annex the property under your HOA. The potential buyer may then need to be a member of more than one HOA with different fees, rules, and governing documents.
5. The annexation of a parcel may require legal help. We suggest consulting your real estate attorney as it may require deeds and title work.
6. If the annexation pushes through, the HOA may need to register the change with its local county.
On the other hand, the HOA may have the option to allow the buyer to purchase both properties without annexing the adjoining lot. This may make things a little less complicated for the HOA.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
