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What does "binding on all parties" mean?

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SouthernYankee6

Junior Member
What is the name of your state (only U.S. law)? Alabama

My Property Owner's Association (POA) has an Architectural Control Committee to which the Covenants has language that reads: "With respect to all matters that are, by the terms of this instrument, to be decided by the ACC, the decision of the ACC shall be final and binding on all parties. No changes or deviations in or from such plans, specification or plan, as approved, shall be made without the prior written consent of the ACC."

What does this statement mean? Who are the parties?

a) Me as a lot owner
b) The ACC
c) The POA
d) All of the above

Background:
The ACC made a decision in my case by a majority vote (2-1) to approve my project as well as two variances I requested. The Board of Directors (the President and Treasurer) are denying the approval of the ACC and requiring me to provide details concerning ordinances, code, and structural information. The Covenants further specify: "Approval shall be limited to outward appearance only and shall not include any responsibility or authority to review for structural soundness, interior design, compliance with building or zoning codes or standard, or any other similar or dissimilar factors."

In my opinion:
(1) I am being treated unfairly (to my knowledge the board has never been involved in such decisions of the ACC).
(2) The Board of Directors are not following what the Covenants provide for by requiring information that is specifically prohibited from being considered by the ACC.
(3) The Board of Directors are in breach of contract by not following the requirements of the Covenants.

The President sent me an e-mail and in that e-mail he wrote "The covenants can be too perfect at times when Phase I is the only part of the subdivision stressing compliance. We all need to be on the same page so there will be no deception." I do not understand this statement and it make me think that the Covenants are not being followed.

Thank you!

Tom
 


justalayman

Senior Member
ylu are trying to use the acc ruling to avoid enforcement of powers not relegated to the acc. The POA most likely has the authority to demand compliance with building codes and sound building practices and that appears to be all they are demanding.

The acc approves the design, or the appearance if you will. The POA controls what's behind the pretty face.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? Alabama

My Property Owner's Association (POA) has an Architectural Control Committee to which the Covenants has language that reads: "With respect to all matters that are, by the terms of this instrument, to be decided by the ACC, the decision of the ACC shall be final and binding on all parties. No changes or deviations in or from such plans, specification or plan, as approved, shall be made without the prior written consent of the ACC."

What does this statement mean? Who are the parties?

a) Me as a lot owner
b) The ACC
c) The POA
d) All of the above
I do not know what you mean be POA (hopefully you mean HOA) but binding on all of the parties means binding on ALL of the parties.

Background:
The ACC made a decision in my case by a majority vote (2-1) to approve my project as well as two variances I requested. The Board of Directors (the President and Treasurer) are denying the approval of the ACC and requiring me to provide details concerning ordinances, code, and structural information. The Covenants further specify: "Approval shall be limited to outward appearance only and shall not include any responsibility or authority to review for structural soundness, interior design, compliance with building or zoning codes or standard, or any other similar or dissimilar factors."

In my opinion:
(1) I am being treated unfairly (to my knowledge the board has never been involved in such decisions of the ACC).
(2) The Board of Directors are not following what the Covenants provide for by requiring information that is specifically prohibited from being considered by the ACC.
(3) The Board of Directors are in breach of contract by not following the requirements of the Covenants.

The President sent me an e-mail and in that e-mail he wrote "The covenants can be too perfect at times when Phase I is the only part of the subdivision stressing compliance. We all need to be on the same page so there will be no deception." I do not understand this statement and it make me think that the Covenants are not being followed.

Thank you!

Tom
In my opinion it sounds like the president and treasurer are overstepping their authority. The email from the president also sounds like BS nonsense. However, you really need to take everything and run it by a real estate attorney.
 

justalayman

Senior Member
I do not know what you mean be POA (hopefully you mean HOA) but binding on all of the parties means binding on ALL of the parties.



In my opinion it sounds like the president and treasurer are overstepping their authority. The email from the president also sounds like BS nonsense. However, you really need to take everything and run it by a real estate attorney.
Well, if they have a POA, hopefully the op didn't mean HOA because there won't be a n HOA if they have a POA.

And their acc decisions are not binding on my party.

It is appliccable to parties the acc expresses jurisdiction and authority over. That cannot be determined by what the op has posted with certainty but whether it be binding on the board and president would be determined by reading the POA documents in their entirety.


Regardless, even with the "binding on all parties" statement, any party is surely given a right to contest or object to the decision. After that point the acc would likely review the objection and make a ruling on the objection.
 

SouthernYankee6

Junior Member
Yes, it is a Property Owner's Association as recorded, not a Home Owner's Association. Is this a different legal entity?

Is there a way I can attach our Restrictive Covenants as a PDF file?

As for code enforcement, the Covenants require I provide a copy of my building permits after I have drawn them. Construction cannot commence until the permits have been pulled.
 

adjusterjack

Senior Member
Yes, it is a Property Owner's Association as recorded, not a Home Owner's Association. Is this a different legal entity?
It's a distinction without a difference.

Is there a way I can attach our Restrictive Covenants as a PDF file?
I don't think so.

Wouldn't make any difference for us to read it. We could agree with you and you would still have to choose whether to ignore the "board" member and move ahead or get a lawyer to convince them of the error of their ways.
 

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