ALCA Deedback Policy
Date: 5/12/2010
Arrowhead Lake Lot Deedback Policy Rev. April 30, 2010
Arrowhead lake Community Association may in the discretion of the Board of Directors accept deeds conveying unimproved Arrowhead Lake properties back to the Association ("deedbacks") under certain conditions.
A property owner must first make a written request to the Association's General Manager to deed a property back to the Association. Decisions to accept or reject deedback lots are made in the discretion of the Board of Directors by majority vote.
The owner must pay ALCA an administrative charge of $1,500 for costs that would be incurred to complete the deedback process. That fee is due upon notice from the Board that the Board has preliminarily approved a written deedback request. Once the owner pays this charge, ALCA can begin work to complete the other closing requirements. ALCA may terminate the proposed deedback transaction in its discretion at any time, however, by returning the $1,500 administrative charge to the property owner.
Before a closing can be scheduled, the lot owner must also pay all dues, assessments, taxes or any other charges due on the property, including all charges owed to any ALCA subsidiary. The owner will also pay at closing normal costs of a seller, such as prorated taxes, dues, assessments, recording fees and transfer fees. Titles of deedback lots must be free of any liens or encumbrances and must be insurable at normal rates by a title insurance underwriter approved by ALCA.
If a property transfer is rejected by ALCA because of problems related to title defects or liens, the owner could request to have up to 6 months to rectify the title problems to the satisfaction of ALCA's title insurer. If after 6 months the title to the property is still not acceptable to the title insurance company, ALCA may end the process and refund $1,200 to the owner. $300 is retained by the Association to cover its administrative expenses, including the cost of the title search.
The ALCA Board may modify this policy at any time at its discretion.
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