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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 38850
Experience:  Texas Attorney for 30 years dealing in real estate
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I am currently a homeowner in an HOA with two units only. I

Customer Question

I am currently a homeowner in an HOA with two units only. I have no idea how to run an HOA, though when the builder's sold us the house, we were the first to buy, so they made me the President.I would like to know exactly what I need to do (minimum) to set up the HOA.
I also would like to understand if we need to create an HOA board. Who should be on the board and how many different officers there should be.
Finally, if there are only two of us and we each have one vote, how can the HOA move forward on issues that the homeowners do not agree on as there is no way to have a 'majority' vote.
Submitted: 4 months ago.
Category: Real Estate Law
Expert:  Ray replied 4 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Customer: replied 4 months ago.
thank you
Expert:  Ray replied 4 months ago.

I would check your bylaws for dissolving the HOA. As you state since there are only two owners it would be impossible to run this with an even membership.Your by laws may in fact allow for dissolving it by unanimous vote.Otherwise you will have to amend your by laws first to allow for this and then vote to dissolve it.Assuming all members are in agreement then this has effect of dissolving the HOA.

I am not sure why this was set up this way but it simply will not work, unless there is total agreement and thats unlikely.It sounds like the builder dumped this on you here.You may need a lawyer locally to dissolve this and close out the HOA.It is unrealistic to have a two member HOA here in Texas.

I wish you good luck here dissolving and thanks for chatting with me.

Expert:  Ray replied 4 months ago.

It is my hope here that you can dissolve the HOA and eash party s then on their own responsible for their property.I just don't see this working here.

Lawyer to dissolve here..

https://www.texasbar.com/AM/Template.cfm?Section=Lawyer_Referral_Service_LRIS_

Thanks again for the chance to help.

Customer: replied 4 months ago.
you did not answer any of my questions. I would like my actual questions answered
Customer: replied 4 months ago.
dissolving is not an option. how would you insure common space if not through an HOA?
Customer: replied 4 months ago.
I would like to know what is the minimum that has to be done to run the HOA.
How many officers are required.
How is the board elected?
Expert:  Ray replied 4 months ago.

All would be officers, board members, two of you would have to unanimously agree to everything here.If the builder did not create rules and by laws then these need to be created.Also for the HOA to function you would need some kind of dues.Again all of this requires both of you to agree.You would have to agree to some kind of tie breaker to resolve issues.Or again you can agree to dissolve it because these issues seem pretty impossible to resolve.I really think the builder dumped this on you.I do not see that you need an HOA here for two people.If you have joint issues why not just do a contract/operating agreement on any mutual issues.Two people real hard to agree to anything and move forward.You really aren't the President unless the other party agrees to that too.You are going to need a lawyer locally to straighten this mess out or do an agreement to dissolve it.

Expert:  Ray replied 4 months ago.

Texas Property Code requirements to set up an HOA

http://www.houstontx.gov/planning/Neighborhood/docs_pdfs/Chapter204Chart.pdf

Expert:  Ray replied 4 months ago.

More about it starting on page 9, even though this is referenced College Station the law is the same through out Texas.

http://www.cstx.gov/modules/showdocument.aspx?documentid=2926

You would need by laws and ccrs if you don't already here.You will need a bank account, EIN number for the HOA, there is a tax return due each year.