My name is Robert Stermer-Cox and I want to warn people interested in purchasing real estate in Ocean Shores, Washington. Be careful! Many of the lots in Ocean Shores are part of a extortion scheme called the Ocean Shores Community Club.
This is how the club excludes anyone who entertains the thought of voluntary membership from seeking a position of the Board of Trustees. Because it is a “requirement”, it is, therefore, a qualification of office. Qualifications for office are described in the By-Laws and Articles of Incorporation. There is no mention of any oath.
I call this club a extortion scheme because not all members are permitted to exercise their property rights as club members or be part of the governing process. The members who wish to change the membership in the club to voluntary are denied representation on the Board of Trustees or the right to elect someone who would represent them. This is not a club run by the members, but by the club’s attorney and the select few.
By denying members their rights and interfering with the election process, the Club is no longer a legal operation and is nothing more than an extortion scheme to take money from members who don’t need, want, or use the club’s facilities.
This club, the product of the club’s attorney, Michael Valdez, is simply a social club, offering no other services at all, and yet it has liens on member’s home to insure dues payments. This is a private club in an incorporated town that is not part of a homeowners or condominium association and because of that, is illegal under Washington State law. Only a questionable bankruptcy court proceeding insures it’s continuance. This club, via it’s attorney, can, will, and have foreclosed on some 200 properties for failure to pay dues.
I also blame the greedy real estate industry for this situation. We, like a great many others, were never told about the club having liens, in fact, our agent told us the property was “free and clear”. It was not. Our bank, USAA, also failed us. Their policy was not to make loans on properties with liens. Yet, they gave us a loan. Buying our first home we relied on and trusted the “professionals”. Big mistake.
How this situation can exist in a city in America is beyond belief. The extremes the club will go to protect itself is astounding. My writings on an other web site, saved three people from making the mistake of buying in Ocean Shores. I hope this site does as well.
Note: Unless otherwise credited, italics indicate quotes from the Ocean Shores Community Club, Inc.’s Second Amended Disclosure Statement; Second Amended Plan; Exhibits and Notices. I selected to display items from the Decree side by side with notes about the item. Reader comments will be made at the end of the article.
I also include articles and comments from other members that I have accumulated and a couple of new ones from the web.