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Tag Archives: ccrs

Two-family rental may violate codes

Q: Last year our HOA’s rental policy was challenged by a developer. We had previously not allowed rentals. After a new vote, property owners are now allowed to rent their properties. However, our restrictive covenants clearly state that homes are for single-family use only. There is a home in our community which has multiple levels and was marketed by a Realtor last year as having multi-family capability. Citing our restrictions, our board asked him not to market the house as multi-family. The house was recently sold and the new owner intends to rent the home. During a conversation with me he stated that he intended to rent the downstairs and occupy the upstairs himself. Our board feels this is a violation of the restrictive covenants. What recourse does our board have? You indicate that your CCRs (covenants, conditions and restrictions) restrict homes to “single-family” use. Is the term “single-family” defined in your CCRs?

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N.C. law banning transfer fees is questioned

Q. I need guidance on the new law dealing with transfer fees. I am a real estate agent and I have a home listed in a community whose covenants, conditions and restrictions state that a fee of 6 percent of the sales price of every home is to be paid to the developer at closing. With the new law banning transfer fees, is this seller obligated to pay the 6 percent to the developer at closing?

The governing documents of many communities, often called Covenants, Conditions, and Restrictions (CCRs), require the payment of a fee to the HOA upon the sale of a home.Such fees can be helpful for a fledgling HOA trying to build its capital reserves. These transfer fees typically were imposed only on the initial sale of a home, but not on subsequent resales.

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Handling HOA business by e-mail

Q: Can the board of an HOA handle any items via e-mail and have those acceptable as legal actions? I am wondering if the approval of meeting minutes can be handled via e-mail rather than waiting for the next meeting. If so, they could then be posted on our Web site and not be held up for the next meeting’s action.

If your HOA is organized as a nonprofit corporation as most are, it is governed by the N.C. Non-Profit Corporations Act (Chapter 55A of the N.C. General Statutes). The laws authorize a board to take action by majority vote at a board meeting.There is no substitute for the open exchange of ideas that occurs at a face-to-face board meeting. However, in recognition of the fact that decisions sometimes need to be made between regular board meetings, the laws also authorize the board to take action without a meeting, provided there is unanimous written consent of the directors.

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Flooding launches a border war, HOA action

Q. Our homeowners association has become involved in an issue between two homeowners related to the natural flow of water from one home into the next.

Homeowner No 2 has put up a 4-inch metal retainer as well as sandbags just inside his property line to keep the water from overflowing into his yard and possibly entering his foundation. This water then backs up into the yard of homeowner No 1, causing puddling and possible entry into his foundation. The HOA board has requested that No.2 remove the retainer and sandbags as specified in the covenants, conditions and restrictions (CCRs), which in essence, forbid them unless first approved. The CCRs further state that with 10 days notice, the HOA may remove obstructions if the owner doesn’t.

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