Sarita and Nafis Khan, Eric and Katherine Gadpaille, Judith LaPointe & Robert Earley v. Alpine Haven Property Owners’ Association, Inc.

Summary

The Vermont Supreme Court considers whether Alpine Haven, a residential subdivision, constituted a preexisting common interest community under the Vermont Common Interest Ownership Act. The Court holds that the series of deeds relied upon by the trial court did not suffice to create a common interest community and reverses and remands for further proceedings. The opinion also addresses the validity and procedural defects of later declarations and bylaws adopted by the property owners’ association.

Holdings

1. A series of deeds does not constitute a declaration creating a common interest community unless all of the deeds impose the common burden requiring unit owners, by virtue of ownership, to pay for maintenance, improvement, services, or other expenses related to common property or facilities. Because numerous Alpine Haven deeds, including the first deed, lacked such a payment obligation, the deeds did not create a common interest community.
2. An equitable obligation to contribute to the cost of a commonly used road or service is not equivalent to a servitude requiring payment by virtue of ownership, regardless of use, and therefore does not create a common interest community.

Questions Presented

1. Whether a series of deeds with inconsistent provisions concerning services and payment obligations created a preexisting common interest community under the Vermont Common Interest Ownership Act.
2. Whether an equitable obligation to contribute to the cost of commonly used roads or services is sufficient to create a common interest community.
3. What fees, if any, AHPOA may charge for deeded services and rights-of-way after the court determines that Alpine Haven is not a common interest community.

Disposition

reversed_and_remanded