This story is impossible to describe in my short format. But I encourage you to read the judge’s decision linked below. Rosemere Estates is a tiny Las Vegas neighborhood of just nine houses built in 1994. Everyone knows each other. The developer left some minor covenants in place, just four pages of innocent CC&Rs to maintain a few common areas. He never established a Homeowners Association or a Property Owners Association. There were no construction deadlines or restrictions against pets, rentals, etc.
In 1996 John and Trudi Lytle bought a parcel from the developer primarily because there were few, if any, restrictions on how a homeowner could use his property. A year later two of the nine property owners decided they wanted a mandatory Association with all the fascist, draconian restrictions that are so famous throughout the rest of Las Vegas. Their attempt failed.
In 2004, these two homeowners made another try, introducing a new set of proposed CC&Rs. Since any CC&Rs above and beyond the developer’s original ones needed a unanimous consent of the nine homeowners, the neighbors again refused to go along.
2007…another try, this time these two idiots filed Articles of Incorporation and falsely referred to ‘previous’ restrictions which allowed the ‘board’ to modify furutre restrictions without unanimous consent. The whole document was full of intentional lies and deceptions.
The supposed ‘new’ CC&Rs would be hilarious if the intent wasn’t so evil. One regulation amounted to a morals clause! It outlawed any use of a property if the board in its infinite wisdom decided the use was immoral, improper or offensive.
Another one: Any animal found off-leash would be immediately turned over to Animal Control. And any animal deemed (in the board’s wisdom) to be a nuisance would be banned from the neighborhood forever.
Does it get worse? Hey, Bunky, you ain’t heard nothin’ yet.
Any homeowner who wanted to build was given only 60 days to complete the project! That would be absolutely impossible for anyone wanting to build a custom home.
Homeowners were given a packet of legal mumbo jumbo and were told, “Ya don’t need to read it, Dummies, it’s a done deal.”
Well, after six years of costly litigation all the way to the Nevada Supreme Court and back, a judge has dumped on these two idiots and their fake HOA. He ruled in favor of the Lytle couple on all counts. He hasn’t yet announced the total, but he’s going to award six years worth of legal fees on both sides of the case to the Lytles. It’ll be a massive sum. But guess who gets to pay the award? All nine property owners, of course. If any of the nine can’t afford their share of the judgment they can be foreclosed upon.
Now what would it feel like to live in Rosemere Estates for the next twenty years?
Amazing, how even the smallest of communities have a couple of chuckle-heads, that think they are above the law, or in this case are the law.
One large pitfall that all potential homeowners need to be aware of are provisions in the CC&R’s that allow ” the board of directors, from time to time, may make “reasonable” changes to the rules and regulations.” I have seen many boards take this provision to the extreme, far surpassing what is “reasonable,” fair or in some cases legal.
In the case of Rosemere, these two homeowners, were simply the village idiots. Again, suing your HOA is a double-edged sword, in the end everyone pays including the plaintiff.
I know people who live in this neighborhood and nothing has happened yet, they have not had to pay anything. Also, there is a home for sale at 1960 Rosemere Ct, Las Vegas, NV 89117 and it is pending. Wouldn’t the seller have to disclose this fact?