developer, current manager and COA President

Started by SharonG5 • 4 replies • 1240 views

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SharonG5 (Florida)
Posts: 2

Posted:

We are purchasing a condo in Florida and are now in our "3 day exploration period" on the COA. We have learned that the former developer ( a real estate lawyer), who lives in Alabama but did retain 1 unit at the condo in Florida is now the paid property manager and also the COA President. There are 3 board members, the President, the Tres and the Sec. There is not a very active membership because most of the owners use the condo as investment property and don't want to deal with "being on a board" and are happy that the developer is such a nice guy that he will just continue to run things.

I don't know the developer, who may very well be a nice guy, but I am uncomfortable with one person holding all the cards in this situation.

Is this typical in Florida---for the developer to just stay on and manage the association after a "turnover"?

I love this condo but I am apprehensive about proceeding--is this just an over reaction on my part?

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Sharon:

FL state statues give developers pretty much carte blanche control. My mother was at one time considering purchasing property in FL for a winter home. As I am the trustee for her estate the one item I asked for after reviewing the FL statutes was not to purchase in a development which the developer still had control of the HOA. Because she was looking for a newer less than 20 year development and most still had the developer involved she ended up choosing to buy in NV instead of FL. LOL … that was better for me as the home in NV is less than 7 hour drive for me to monitor.

Personally per advice I gave my mom … I would not purchase in a development in FL where the developer still is in control of the HOA. There are numerous news articles regarding developers having control for long periods of time and charging the homeowners a fee for their service as the management company while retaining control and which the homeowners cannot dispute.

SusanW1 (Michigan)
Posts: 5,202

Posted:

I'd say that being president AND paid manager of the HOA is a conflict of interest.

But are you sure there has been a turnover?
(to a member-run HOA?)

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I agree with Susan.

I would not be comfortable with the Asociation President also being the paid Property Manager, but this is common before turnover of the association to unit owner control.

Some associations are self (BOD) managed but as far as I know, no one on the BOD gets paid for doing such.

Maybe he is a benevolent dictator and all runs well, but that is for you to decide. I would suggest if you go into such a situation not being comfortable from the get go, then it might will be down hill for you after that especially if something arises you do not care for.

CarolF (Florida)
Posts: 435

Posted:

If "turnover" has occurred, read 2011 FL statute 718 for condominiums.

http://www.leg.state.fl.us./Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/0718ContentsIndex.html&StatuteYear=2011&Title=-%3E2011-%3EChapter%20718

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