More Information:ĭownload our L&J Quick Facts article below. As a result, a community that adopts the POA can avoid complicated and expensive community votes to renew or extend its covenants because its covenants will last in perpetuity. The POA, however, provides that the 20-year limitation on covenants does not apply to any covenants submitted to the POA. Yet, Georgia courts have subsequently held that covenants in communities recorded prior to 1994 do not receive the benefit of the 1994 law. In 1994, the law was amended to permit covenants to automatically renew. Prior to 1993, Georgia law generally provided that covenants expire after 20 years. This significantly strengthens the association’s powers to enforce its legal documents. The POA grants the association a statutory power to assess fines against violators of the association’s governing documents and to suspend the common area use rights of those violators, provided that the association’s ability to fine and suspend are expressly stated in the declaration of covenants. By submitting to the POA, communities ensure all covenant amendments are enforceable against all owners in the community, including those who did not vote or disapprove the amendment. īased on a recent case some covenant amendments might be enforceable only against owners who consented to the amendment. Violations of the governing documents by a tenant will be treated, in many instances, as a violation by the owner. The POA clarifies all owners and tenants must comply with the declaration of covenants and the association’s rules and regulations. The superior liens, usually a first priority mortgage or lien for ad valorem taxes, will remain on the property and become the responsibility of the new owner. This means the association has the right to obtain an order from the court allowing the association to foreclose on its lien without first paying off all superior liens. Judicial Foreclosure – The POA allows an association to judicially foreclose on its liens for assessments or other charges over $2,000. Therefore, if an association’s automatic statutory lien is not paid at closing, the association can proceed against the new owner, who will be personally liable for all amounts owed prior to the closing. Joint and Several Liability to Pay Assessments – The POA provides that, unless the declaration of covenants states otherwise, the buyer of a lot is jointly and severally liable with the seller for all unpaid assessments. Late Fees and Interest – Submission to the POA allows an association to charge a late fee of the greater of $10.00 or 10% of the amount due, and interest at a rate of 10% per annum on unpaid assessments and other charges. Without including this specific language in the association’s governing documents, some courts improperly reduce the attorneys’ fees awarded to the association, thereby leaving the association with a legal bill to pay.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |