Legal Question in Real Estate Law in Utah

Unauthorized deed given against cc&r bylaws

I bought a condo about 3 years ago from the HOA. The HOA sold it because they wanted use the funds to do other repairs around the complex. The HOA and their attorney miss-read the cc&r bylaws and thought they only had to have a partial vote of like 80% to sell the ''commonly owned property''. It turns out that they were wrong and they should have gotten a 100% vote to sell the property. The HOA board and their attourney admit to reading the cc&r's wrong. This was discovered after I purchased the property. My title insurance company does not want to do anything, and the HOA does not know what to do.

My question is, I want to sell the condo but how will this effect my ability to have a clear title? Is there anything I can do to recover my costs of renovating the condo should I not be able to sell it?

Please advise.


Asked on 5/28/02, 5:33 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Unauthorized deed given against cc&r bylaws

This question is difficult to answer without referring to the CC&R document. In general the failure of the other condo owners to object after they have notice of the sale constitutes a waiver of their right to object. Send notice by certified mail, return receipt to each owner and place them on notice of your purchase. You could get from each a signed, notarized waiver of their right to object - or a consent to the sale. Thus you will have fulfilled the CC&R requirement, even though it is after the sale. With such a release or consent, the title insurance company should then be willing to issue title insurance. If not get another title company. The HOA should bear the costs of the mailing, since they breached the CC&Rs.

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Answered on 5/29/02, 9:06 am


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