Legal Question in Real Estate Law in California

I'm not sure what you mean by saying the HOA is in the place. Do you mean the Homeowner's Association is physically occupying the property that you purchased, or that you just now found out that the property is subject to CC&R's?

If you are claiming that you just now found out that CC&R's were recorded, the law will deem you to be on constructive notice, because those have to be recorded at the county recorder's office to be binding.

If you are claiming that the HOA is occupying the property, you need to find out whether you received valuable title or not. A big question that I would have to you was whether you used an escrow, and purchased title insurance.

I agree, and I would also inquire whether you employed a buyer's agent to assist you. All of this sounds pretty irregular, and someone didn't investigate sufficiently and/or didn't read all the disclosures.