McMullin v. Hauer
2018 CO 57
Colo.2018Background
- In 1998 the McMullins recorded a final plat for "Two Rivers Estates," dividing 30 acres into seven lots and ~17 acres labeled "common open space," with plat language referencing a "Home Owner's Association" but no recorded covenants.
- The county and developer executed a subdivision agreement binding the developer to conditions on the plat.
- The McMullins mortgaged six lots (not the common space); several lots changed hands after foreclosures and sales to the Hauers, Conrados, and Lincoln Trust.
- Lot purchasers sued to quiet title and claimed appurtenant rights to the common open space via an implied common-interest community and an unincorporated homeowners’ association under CCIOA.
- Trial court found a common-interest community by implication, an unincorporated homeowners’ association holding equitable title to the common space, and authority to levy assessments; the court of appeals affirmed.
- Colorado Supreme Court granted certiorari and reversed, holding the recorded instruments did not satisfy CCIOA’s requirements to create a common-interest community by implication.
Issues
| Issue | McMullin's Argument | Hauers/Claimants' Argument | Held |
|---|---|---|---|
| Whether recorded instruments (plat, deeds, subdivision agreement) constitute a CCIOA "declaration" creating a common-interest community | The documents do not meet CCIOA’s declaration requirements and do not create obligations to pay for common expenses or attach those obligations to lots | The plat, deeds, and subdivision agreement, read together, demonstrate intent and function as a declaration creating an implied common-interest community and assessment authority | Reversed: documents insufficient to create a common-interest community under CCIOA; they do not establish mandatory expense obligations or attach them to units |
| Whether an unincorporated homeowners’ association exists and holds title to common space | No homeowners’ association was created by the recorded instruments; no conveyance of common space to an association occurred | The plat’s reference to a homeowners’ association and statements of "common ownership and maintenance" support implication of an association holding equitable title | No implied association: unlike Evergreen Highlands, there was no recorded covenant, articles, or conveyance evidencing an association or ownership of common area |
| Whether Evergreen Highlands permits implying assessment authority here | Evergreen Highlands is distinguishable and does not permit implication where foundational elements are missing | Evergreen Highlands supports implying an obligation where a declaration creates an association but omits a funding mechanism | Evergreen Highlands limited to cases where a declaration affirmatively creates an association or common-area ownership but lacks funding; not applicable here |
| Whether CCIOA’s mandatory components can be omitted and still form a declaration | CCIOA requires minimum components in §38-33.3-205 and an obligation to pay attached to units — omission defeats formation | An aggregate reading of plat, deeds, and subdivision agreement satisfies the statute by implication | Held that statutory mandatory components and an obligation-to-pay attached to units cannot be supplied by inference from the scant recorded instruments here |
Key Cases Cited
- Evergreen Highlands Ass'n v. West, 73 P.3d 1 (Colo. 2003) (approved implying assessment authority only where declarations affirmatively create an association or common-area ownership but lack funding mechanism)
- Pulte Home Corp. v. Countryside Cmty. Ass'n, Inc., 382 P.3d 821 (Colo. 2016) (declaration may consist of multiple recorded instruments but must both establish expense obligations and attach them to units)
- Ryan Ranch Cmty. Ass'n, Inc. v. Kelley, 380 P.3d 137 (Colo. 2016) (every declaration must include statutory minimum components listed in §38-33.3-205)
- DeJean v. Grosz, 412 P.3d 733 (Colo. App. 2015) (declaration language granting a right to form an association runs with the land and gives notice, but robust recorded statements are required)
- Hiwan Homeowners Ass'n v. Knotts, 215 P.3d 1271 (Colo. App. 2009) (covenants that expressly impose mandatory assessments and create an association support assessment authority)