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If I were researching this situation, and based on my extensive legal experience with HOAs and land use law over the last 15 years, the first thing I would want to see is what the Declaration of CC&Rs says. This document will identify whether this is a mandatory or voluntary HOA. The Declaration of CC&Rs legally binds one owner to another. Legally and at this forum: “Covenant” is another word for “contractual term.” Covenants are normally recorded with the county. Such recording serves as “public notice” to all that this “contract” exists. Meaning if one buys a lot in the community to which the covenants apply, one has agreed to abide by the covenants.
Your focus on whether this is a corporation or LLC, or converted from one to the other, is, in my opinion, misplaced.
I have doubts the attorneys said what you claim. It is possible that instead, these attorneys meant this association (call it an HOA; call it a company with members; call it a corporation; whatever) might not be subject to the NC HOA statute on account of xyz.
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