Declarant - Foreclosure

Hi,

The declarant or original developer was foreclosed on by the bank. An investor bought the 61 remaining lots. Last year the bank paid the assessment fees of $500.00 per lot. The new Investor does not want to pay full amount. This is a Property Owners Association per lot not per homeowner. He wants to state he has delarant rights but I do not think so since he is an investor, who wons 61 lots.

He has not done any development and only has his lots listed for sale.

He would have 61 votes which is about 45% of lots which gives him an advantage, but that should not have any effect on the deed restrictive covenants and he was given this document same as a one owner investor.

Could someone please clarify if this is correct or is there any way he could be considered declarant, if the bank who owned the property before him paid assessments and did not state rights of declarant.

Thanks for any help
CindyM45

As we have dealt with these issues before, he doesn't or should not have declarant rights, as he purchased the lots after bank foreclosure. Had he had the property transfered to him from the original developer to take over the mortage, he would be entitled to declarant rights. Whne he becomes deliquent, follow the collection to lien process and proceed to foreclosure. Then, he will have to hire an attornety to defend his position in court and the courts will make final decision. If he wins, then the Association writes the $$ lost of on taxes.