Transition question!

Started by AustinP • 4 replies • 1335 views

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AustinP (Florida)
Posts: 8

Posted:

Our Declaration states that in order for transition to start, "90% of the lots have to be conveyed to the owners other than the developer."

Does this mean 90% has sold or just built?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Austin,

Based on what you cited, I would say sold. Please note that the sale is typically not complete until the home is built (but this can vary from development to development) and recorded with the county.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Our docs say 85% built and closed on.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Austin,

Your OP says "lots" must be conveyed. To me, that means at least 90% of the lots must be sold to individuals other than the developer. Whether a home is built on the lot or not appears to be irrelevant. An individual could purchase a lot now and have a home built on the lot at a later date by a different builder.

That's my interpretation.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

One thing I love about this site is it drives me to rereading my own docs.

I had said that out docs say tunover was when 85% of the homes were built and closed on. The more I read, the more I realize is says when the lot is sold. It does not mention a home having to be on it. A lot has never been sold without a home on it as our declarant makes his money on the house. He makes little to nothing on the land.

Our turnover is at 85.5% of 113 so when the 96th is sold (closed on) we will have turnover. We are within 6-9 months of turnover with about 15 vacant lots, 6 homes under construction but not sold, and 3 sold and under construction.

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