Amendment of Articles of Incorporation for Homeowner Association Does Not Extend Deed Restrictions

In Deghetto et. al. v Beaumont’s Seven Harbors White and Duck Lake Association, an unpublished Michigan Court of Appeals Opinion, the restrictions recorded in the chain of title to several subdivisions provided that they would expire on January 1, 1986, unless they were extended by the “written consent of at least 75% of the membership of the Association.  An amendment to the Articles of Incorporation recited that it made membership in the association mandatory for owners of lots in the subdivisions, but was signed only by an officer of the corporation.  The association relied upon the amendment as an extension of the restrictions.

The Court of Appeals held that the amendment to the Articles of Incorporation, which did not explicitly state that the restrictions were extended, and which was not signed by 75% of the membership did not satisfy the requirement of needing to obtain “written consent” of the lot owners.  The restrictions expired by their own terms because they were not extended.

The case has other interesting twists and turns; the above is only a synopsis of the main ruling.

© Steve Sowell 2017