Could your street and common elements be sold from right under your feet?
In San Francisco, the residents of well-to-do Presidio Terrace, one of the City’s 181 private streets, learned this lesson the hard way. According to the San Francisco Chronicle, real estate investors purchased the common ground, including the street, sidewalks and other common ground at a tax sale. The common ground came up for sale due to the Presidio Homeowners Association’s supposed failure to pay a $14 per year tax bill over decades. The purchasers paid over $90,000 for the street, and are considering plans to rent parking spaces back to the homeowners. The Association is now challenging the sale.
A couple easy steps could save your community from this type of headache:
– Pay attention to notices from government and taxing authorities.
– Confirm your non-profit registration and status are filed and up to date.
– Make sure the developer/declarant terminates their period of governance and transfers ownership of the common ground to the Association.
– As always, if you have a question or concern, be sure to ask your attorneys.
The full article may be found HERE.
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