If our HOA revises the Deed Restrictions, can it affect a rebuild of home in a total loss? Sq.Ft. Requirements

Question

HOA revising Sq Ft requirements from 1250 to 1750. Some homes are 1300 SF. If financing was needed to rebuild, could a title policy be written if only rebuilding a 1300sf home? Since restrictions are filed before deed of trust or mechanic's lien, does it affect the possiblity to rebuild similar structure if a home was lost due to disaster (fire,tornado, etc.)? If you know, please help before our HOA makes this revision.

Answer 1

The CC&R on the master deed or plat should address this. Normally current owners would be grandfathered under the old rules if it was drawn up properly. If not, you could have a mess on your hands. Just one more reason that I never buy into a HoA.

Answer 2

let's suppose the HOA musters the votes and gets the change enacted.

some time later, a smaller property is gutted by fire [or whatever]. The insurance company pays off the mortgage and then gives the rest to the owner.

Ask HOA if they're prepared to buy the resulting vacant space or want the homeowner to sell to someone completely new. [I guarantee they won't have the money to rebuild to new requirements.]

then ask every member if this is what they want to happen.

do this before the vote.

my guess is the vote will be voted down IF you act to point out the possible problem.

Answer 3

The master plan should address this. If a structure is destroyed, it can either be rebuilt at the square footage it was or must comform to the new square footage requirements.

This could be a problem for homeowners if the larger home is required, because the insurance company will not pay for the larger home.

I agree, this could be messy.