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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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I'm looking into buying a parcel of land but have been

Customer Question

Hello,
I'm looking into buying a parcel of land but have been blindsided by a restrictions agreement. They appointed a ACC (Architectural Control Commitee) for the 14 tracts of the 150 acres being sold. From my understanding of the agreement they are implying a HOA type deal but pack to show any part of a monthly or yearly fee. They state that you have to be approved for everything and they have the power of what is acceptable and what isn't. But the lack of me paying and fee has me questioning if they are even a legal Home owners association. Seems to be a real dictatorship on the properties being sold, being that they have no attentions of helping maintain the community theirselves.
Does this sound right at all?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.
It is possible to have an HOA without requiring annual or monthly assessments (Fees).To determine whether or not the ACC (or any such rules) are actually binding, have a title report done on the property (I highly recommend having a title company (national firms such as First American, Chicago Title, or Old Republic, or a local firm can do so quickly and efficiently and ensure that you find any valid encumbrances).If the association is valid, it will be a recorded encumbrance on the property. If it is simply a group of owners trying to bully another owner into acting in a particular way, it will not be recorded.If it is a valid (and recorded) "Common Interest Development" (the blanket term for HOAs or similar types of common property restrictions), then there will be a set of recorded by-laws governing how they can pass rules, how they can be enforced, etc. These rules will also be subject to the state Common Interest Development statutes which also provide protections to property owners and protect against "arbitrary and capricious" or "selective" enforcement.