Foreclosed Units
Adams Stirling PLC
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FORECLOSED UNITS

QUESTION: Our HOA foreclosed on a unit last year. The new board decided to sell it without notifying or consulting the membership. Doesn't the board need permission from the membership to sell common property?

ANSWER: A unit or lot acquired through foreclosure does not become common area. The property is identified in the governing documents as a separate interest not common area. As a result, members do not have the right to enter and use the property as they would common areas. Instead, the property is under the control of the association through its board of directors, who can either rent or sell it without first obtaining membership approval.

Possible Restriction. There might, however, be language in the governing documents restricting the sale of association property over a certain value without membership approval. Depending on the wording of the restriction, it could affect the board's ability to sell it.

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC