Circuit Court judge removes C&R including POA membership requirement

2 Replies

Five of 50 property owners recently sued the subdivision Developer and the POA. They asked to be removed from the Covenants and Restrictions (C&R). The C&Rs required POA membership. The circuit court judge in Tennessee granted the request and the Developer promptly filed bankruptcy and the property returned to the bank holding its mortgage. The judge then approved removal of the C&Rs for almost all the remainder of properties in the subdivision. We now have large pieces of common property with no way to fund their maintenance. Do you have any ideas on how to set up an on-going way to take care of those properties? I have never heard of a judge removing C&Rs until this event.

That's a new one on me too! I'm very interested in this topic because I own a piece of property in a rural area that has a POA for the sole purpose of maintaining an accesses road. It is in danger of going insolvent and I'm wondering about the same question: what else do you set up to take the place of the POA and still get the maintenance done?

This absolutely requires contacting a real estate attorney who has experience in POA's and common property issues (not all do.) Don't try this on your own, you may set yourself up for a law suit. My uninformed guess (I don't live in your state) is that the owners will have to vote on hiring (and funding) an attorney and on a proposal to establish a POA.

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