Two Ways a Lot Owner May Combine Multiple HOA Lots

In this month’s segment we are considering two ways an owner of multiple lots in a homeowners association may combine his or her subdivided lots. The reason a lot owner is seeking to combine multiple lots will determine the processes that are necessary. There are basically two major issues for us to consider, which will simplify an understanding of the differences.

1. When Members Rights Are Not Impacted. The owner of multiple lots may generally seek to have multiple lots combined as long as the rights of the other members of the homeowner association are not affected. For example, if the owner is intending on combining the lots but will continue paying all of their lot assessments for each of the owned lots, then this perspective will not conceivably impose upon of the rights of the other members of the association. However, the owner should verify with their Declaration of Covenants, Conditions, and Restrictions whether or not combining lots into one will impact what may be built upon the combined lot. For example, most HOA’s require that only one home may be built upon a lot. So, this may impact any future uses of the land and could impact the potential sale of the lot.

2. When Members Rights Are Impacted. If a homeowner wants to combine multiple lots in order to pay only one lot assessment, and avoid paying for each of the other lots owned, then this would conceivably impose upon the rights of the other members of the association. Specifically, it may impact the other members who will have to pay this difference in assessments to make up the budget each year. For this reason, the owner should seek the approval of at least eighty percent (80%) of all of the members of the association at a duly called membership meeting. Otherwise, the association should continue charging those members who combined any lots without the appropriate super majority approval of the membership.

3. Always Seek Legal Advice. There may be some cases where an association's Declaration of Covenants, Conditions, and Restrictions have provisions that impact how, when, and who may authorize combining of lots. We recommend that anyone seeking to combine a lot or considering it consult with an attorney in their state specializing in either real estate or homeowner associations before doing anything. This will assist you with knowing your rights and any legal encumbrances involved that impact other members of the homeowners association. We recommend that the Board of Directors also consult with its association attorney before advising any lot owner or adopting any plan to bring such a request before the membership of the community association.

DISCLAIMER: The information contained herein is intended for informational and educational purposes only and should not be construed as offering legal advice. For legal advice, seek the counsel of a competent attorney specializing in Community Association Law on matters pertaining to your state and community.

For more information visit our web page at www.CambridgeHOAPropertyManagement.com or contact us at: Support@CambridgeHOAPropertyManagement or by calling us at 704-874-1820 or 844.612.1515.