If you live in an association which is still under developer control there are often many things the community wants to do but can’t because it have no real contact with the developer and no easy method to call meetings. In these tough economic times there are communities which are continuing longer than expected under developer control only because of a lack of sales. Both the developer and the homeowners may be anxious to “move on”. So, what can you do? Most HOA documents allow the developer to transition control when it suits until a certain higher percentage of the units are sold — then transition is mandatory. Some developers will still want to stick around and maintain control over the community in which they continue to have a large investment and a desire to insure a quality level is maintained.           

Having a successful transition from developer control to owner control in a homeowners association or a condominium association is not necessarily a difficult process.

 

Continue Reading Our Developer isn’t Selling Many Houses and Over Half of the Houses are Sold – Can We Transition From Developer Control? – WHY, WHEN AND HOW –

QUESTION:

Do owners have the right not to accept transfer of control of an association from the developer? If so, where is that right granted? If we are trying to get the declarant to fulfill his contractual responsibilities and use the transition as a carrot, can we do that?

ANSWER:

Transition is a frequently misunderstood concept. Assuming your association is in Virginia, by transitioning control you gain just that: control of the association. Generally you lose nothing regarding any claims you might have under Virginia law. The laws are different for condos and HOAs. Of course, I cannot speak for what might be contained in any written documents to which you have committed or is set forth in your governing documents. You really should meet with a community association lawyer on this topic – you will get a lot of good info and it really won’t cost you that much. You will need an attorney to guide you at transition and afterward.

QUESTION:

As was stated in one of your answers, passage of title to common areas is sometimes overlooked. What remedy other than going to court exists when a Declaration does not provide for formal conveyance of title and declarant ignores requests?

ANSWER:

Declarations often do not provide for the conveyance but it is generally shown on the subdivision plat as common area to be conveyed. The developer may be paying taxes on a parcel not conveyed. If the developer cannot be induced to cooperate, then a suit is required. If you contact the developer’s counsel first, it might produce better results. Once the suit is filed and the developer seeks counsel, you will likely get a deed promptly. This process shouldn’t be too expensive.