Savannah

What Savannah's governing documents say

This is a private transfer fee covenant (also called a reconveyance fee declaration) recorded against specific lots in the Savannah community in Collin County, Texas. It is NOT a typical homeowners association or condominium rulebook. It binds all current and future property owners—whether they live in the home, rent it out, or sell it—to pay a 1% fee each time the property is sold (the 'Reconveyance Fee'). The fee is owed to a set of named beneficiaries, not to a homeowners association, and the covenant runs with the land until September 30, 2113.

• Transfer / sale fee: Every time the property is sold (with some exceptions), the seller must pay a Reconveyance Fee equal to 1% of the gross sales price (the full amount paid for the property, including any assumed debt). The fee is due at closing and is collected by a trustee (Covenant Clearinghouse, LLC).
• Fee exemptions: The fee is NOT charged in several situations: transfers to or from a lender (including foreclosure), transfers by inheritance or divorce, transfers between affiliated entities, transfers to a government or 501(c)(3) nonprofit, or transfers before October 1, 2014. The first sale by the original developer (Declarant) is also exempt.
• Term of the covenant: The covenant began when it was recorded in the county records (January 27, 2010) and expires at midnight GMT on September 30, 2113. It is intended to run with the land and bind all future owners.
• No community rules or services: This declaration does NOT create a homeowners association, set rules about pets, parking, rentals, architectural review, or maintenance. It only imposes a financial obligation on sales. The declaration explicitly states that no party (including the beneficiaries) has any duty to construct, maintain, or improve common areas or other amenities.
• Enforcement and lien: If the fee is not paid when due, the trustee can record a lien on the property and foreclose (similar to a mortgage). Interest accrues at up to 10% per year, and the trustee can recover attorney's fees. The lien is subordinate to a first mortgage recorded before the notice of lien.
• Trustee and beneficiaries: The trustee is Covenant Clearinghouse, LLC, which collects the fee, issues estoppel certificates, and distributes the proceeds. Ninety-five percent of the collected fee goes to the beneficiaries (listed entities, with Savannah Homes LP holding 50%), and 5% is paid to a nonprofit for the community's benefit. The developer (Savannah Homes LP) also retains a right to terminate the covenant on unsold lots before they are sold to a third party.
• What this document doesn't cover: This is a partial document—it is only a private transfer fee covenant. It does NOT contain any information about homeowner association rules, architectural guidelines, rental restrictions, pet policies, parking rules, or any other typical community regulations. If there is a separate HOA, its rules would be in a different document (e.g., a Declaration of Covenants, Conditions, and Restrictions).

Plain-language summary generated from the governing documents on file for this community. It may be incomplete and is not legal advice — read the full documents below or consult the official recorded versions.