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Developer

  • Association Deficits Don’t Excuse Developer From Funding HOA Reserves Developers must establish and fund reserve accounts for their projects during the initial years while they retain control of the homeowner associations. However, there are various legal and bookkeeping maneuvers that they often employ to attempt to avoid or diminish their contributions for reserves, which are intended for use for major future maintenance expenditures.      Read the article…………
  • Developers want my condo, so how can I fight it? Q: I enjoy reading your informative Q&A columns. I currently have a condo unit I rent out to a tenant. Recently a real estate developer called me and left a voice message about selling my unit at a premium. I am sure he has done this to the other condo unit owners in the building (about 80 units in the building). I am strongly reluctant to sell since I have plans to one day move back to the condo once my elementary school age kids get older.  My questions are: (1) How many units do they need to have a majority to force the sale of the entire building? (2) How to I prevent this from occurring (short of pleading ...
  • Appeals court decides Centex must pay into HOA reserve (FL) The 5th District Court of Appeal recently decided in favor of a pair of homeowners representing themselves in a case against their homeowner association at Sullivan Ranch.  According to a report by the Orlando Sentinel, Sara MacKenzie, who had only practiced law for a short time after successfully earning her law degree in the 1980s, and her husband, Ralph, hoped for “a declaration that Centex failed to meet its obligation to make capital contributions to the HOA’s reserve accounts when it controlled the HOA,” according to the appellate court’s decision.     Read the article………..
  • What Condominium Owners Should Know About Developer Turnover of the Association: Part I During the construction and initial sales of units within a condominium association, the developer will manage the association’s operations and governance. This means the developer controls the association’s board of directors. Once the development is constructed and a certain percentage of the units are sold, then turnover of control of the association to the unit owners must occur. What follows is an overview of what every condominium owner should know about developer turnover of the association.    Read the article…………

Developer Article Archives

Transition

  • Turnover: Transitional Considerations for the HOA Part one of this blog discussed turnover in its initial stages: the events that trigger turnover and the files and papers the developer is required to produce to the homeowners’ association at the time of turnover. Once an association has completed those steps, the board must then turn to critical business and make crucial decisions for the association. Associations and their boards should bear in mind the following issues as they go through turnover and immediately thereafter.  Subsequent to turnover, the association is independent from the developer and its support. At that time, the Board must ensure that the developer delivered on all its promises, and that the physical property and the association’s finances were properly maintained during the time ...
  • What Condominium Owners Should Know About Developer Turnover of the Association: Part II During the construction and initial sales of units within a condominium association, the developer will manage the association’s operations and governance. This means the developer controls the association’s board of directors. Once the development is constructed and a certain percentage of units are sold, then turnover of control of the association to the unit owners must occur. What follows is an overview of what every condominium owner should know about developer turnover of the association.   Read the article………..
  • What Condominium Owners Should Know About Developer Turnover of the Association: Part I During the construction and initial sales of units within a condominium association, the developer will manage the association’s operations and governance. This means the developer controls the association’s board of directors. Once the development is constructed and a certain percentage of the units are sold, then turnover of control of the association to the unit owners must occur. What follows is an overview of what every condominium owner should know about developer turnover of the association.    Read the article…………
  • Turnover: An Important But Often Misunderstood Event for Homeowners’ Associations One of the most critical events a homeowners’ association will face is the “transition” or “turnover” of the association from the developer of the community to the homeowners of the community. However, many homeowners and purchasers may be unaware of what the process of turnover entails, or even what turnover of the community really means. “Transition” or “turnover” of the association means that homeowners in the community are entitled to elect at least a majority of the members of the board of directors of the homeowners’ association.    Read the article………..

Transition Article Archives

 

Buying/Selling

  • Three Reasons to Buy in an Established Condo Association When you are Condo shopping, there’s a tendency to want to see the newest and best construction. New buildings will have the most modern building codes, may be Leeds certified and environmentally friendly, and feature dazzling amenities. All of these are good things. However, if you’re an informed Owner, you know that a Condo is more than just the building – it’s the Association, the finances, and the Board. You really can’t know how strong a building is until it has had time to operate and come together. Here are some reasons to buy in an established Condo Association.   Read the article…………
  • What is a Community Association? Unwrapping the Riddle There are approximately 14,000 planned communities located throughout North Carolina, but very few of the nearly 3 million residents of such communities have a clear understanding of what the heck the community association really is that serves their planned community or condominium.  In short, a community association is a nonprofit organization, either incorporated under the North Carolina Nonprofit Corporation Act (“Chapter 55A”) or unincorporated pursuant to the North Carolina Uniform Unincorporated Nonprofit Association Act (“Chapter 59B”). The association is formed to provide services and enforce the association’s declaration, covenants, articles of incorporation, bylaws, and rules and regulations (collectively, “Governing Documents”) within a planned community or condominium. The owners of lots or units are the members of the association.    Read ...
  • Realtor gives tips on avoiding HOA nightmares (FL) The beauty of buying a home is a dream for many. It’s incredibly exciting when you finally sign on the dotted line.  Then you realize you have to tack on more fees from your homeowner’s association and possibly deal with oppressive HOA rules: your house isn’t the right color, or maybe your grass is one centimeter too high.  It could be horrible, but many think HOAs play an important role.     Read the article………….
  • What homeowners need to know about having an HOA (AZ) Perhaps because ours is a young state with lots of new planned developments and condominium projects, Arizona has 8,800 homeowners associations.  It’s possible you already live in an HOA or maybe you’re thinking about moving to a home with an that has one — gated neighborhoods nearly always have one.  Developers establish HOAs and set conditions, covenants and restrictions for the buyers of the housing units they build. But once the development is up and running, new homeowners elect a board and enforce the rules and set new ones, said Linda Lang, president and CEO of the Arizona Association of Community Managers.     Read the article………………
  • What You Need To Know About HOA Pet Restrictions Recently, we were house hunting in a state saturated with homeowner associations (HOA). It seemed every neighborhood had some type of strict HOA rule. This was our first HOA experience, and we were a bit nervous because we share our home with a Rottweiler and Bull Terrier.  As many pet owners are aware, these dog breeds are usually restricted by insurance companies, HOAs, hotels and so forth. When searching for a home, we were very leery and cautious of HOA pet restrictions. Thankfully, we finally found a great home with no dog breed restrictions listed in their HOA laws. However, not all homeowners’ association rules and regulations are alike. Before locking in your new home, follow these tips to ensure ...

Buying & Selling in a Community Association Archives