Turnover in NC

Started by HarveyM • 13 replies • 3030 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

HarveyM (North Carolina)
Posts: 10

Posted:

Does anyone know if it is mandatory that a developer turn a development over to an HOA in the state of North Carolina after so many lots have been sold? I need to find that statutory cite if it exists.

Thanks

MelissaP1 (Alabama)
Posts: 13,836

Posted:

In what regards do you mean mandatory? A developer is going to turn over the HOA to the owners as soon as they want to. A developer has no real interest in maintaining a HOA after the lots are sold. There's no profit in it then. Turning over the HOA to the owners usually happens on the Developer's timeline and mandatory is pretty much irrelevant. Who else they going to give it to besides the members/owners when they leave? Sounds like your having other issues...

Former HOA President

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By HarveyM on 11/10/2012 9:49 AM
Does anyone know if it is mandatory that a developer turn a development over to an HOA in the state of North Carolina after so many lots have been sold? I need to find that statutory cite if it exists.

Thanks

Some states do have laws regarding when a developer must turn over the HOA to homeowners. It could be after a certain percentage of the homes have been sold, after a certain period and the developer has not built any homes, and other circumstances. I know Connecticut has such a law (The Common Interest Ownership Act) but you would have to do some research to see if there are any such laws in your state. Try researching the website for your state government or state legislature.

HarveyM (North Carolina)
Posts: 10

Posted:

What I mean is are there laws in NC that state when so many lots have been sold, the developer MUST turn the project over to the owners.I cannot seem to find that information in the state statutes.

HarveyM (North Carolina)
Posts: 10

Posted:

I fully agree with you, but I am trying to determine if NC has such a law. I have not been able to find it as yet.

GlenL (Ohio)
Posts: 5,491

Posted:

Harvey I tried a keyword search of transition & turnover and didn't find anything but you may have better luck: http://www.ncga.state.nc.us/enactedlegislation/statutes/html/bychapter/chapter_47f.html

What do your CC&R's require? Usually it is after X percentage of lots sold or after X number of years.

Studies show that 5 out of 4 people have problems with fractions

HarveyM (North Carolina)
Posts: 10

Posted:

The CC+R's are silent on this issue.

NancyG3 (North Carolina)
Posts: 342

Posted:

Harvey call the Secretary of States Office. They have helped me in the past with HOA questions or directed me to the right people.

JustinI (Alabama)
Posts: 4

Posted:

Melissa,
What happens in the instance that the developer went bankrupt? Or moves to an unknown location or dies without any surviving member of his family to assist?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Simple answer court and then bank. Death would be probate court who would decide. Bankruptsy the bank takes back and sells. Could have a conservationship assigned by court. Those are options if it can not be owner owned.

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

Justin,

In all of those instances the prudent course of action would be for the Association to petition a court for the membership to gain control of the Association. If control is not transferred to the membership then whomever purchases the remaining lots owned by the original developer will likely inherit the developers rights and control the Association.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I am not nor do I play a lawyer but I did find this:

North Carolina General Statutes § 47F-3-104
Transfer of special declarant rights

Except for transfer of declarant rights pursuant to foreclosure, no special declarant right (G.S. 47F‑1‑103(28)) may be transferred except by an instrument evidencing the transfer recorded in every county in which any portion of the planned community is located. The instrument is not effective unless executed by the transferee. (1998‑199, s. 1.)

Based my reading of this if there is no reference to when the Declarant must turn over the association to the owners in your Covenants/Deed Restrictions then it will be when he is good and ready to turn it over.

That said, I believe there is also some language in NC 47F about 80% of owners being able to take association control but again, I am not nor do I play a laywer.

JustinI (Alabama)
Posts: 4

Posted:

I will see if we have similar legislation

CarolR11 (Colorado)
Posts: 2,563

Posted:

It is possible, Harvey, that you'll find the info you want in your bylaws. It's worth a looksee.

If you cannot locate your bylaws and no one will give them to you, check the advice on this Forum "Bylaws Request," that was posted within the past week or two.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here