KennaS (North Carolina)
Posts: 2
Posts: 2
Posted:
When does a neighborhood developer need to start paying HOA dues on the lots he still owns in a development? HOA is in NC and has just (days ago) been turned over to the homeowners
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When Does a Developer need to pay HOA dues
Started by KennaS • 7 replies • 3371 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
When everybody else does. He's an owner now...
Former HOA President
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
You need to read the CC&R's to be sure.
Studies show that 5 out of 4 people have problems with fractions
LauraR5 (Tennessee)
Posts: 220
Posts: 220
Posted:
Read your CC&Rs. Our developer, nor any developer to whom he transfers property, need to pay. Our original builder is getting ready to sell the last few lots and we won't see any money until there are sold units on them.
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Your CCR's will spell out when the developer needs to start paying dues on undeveloped lots. Read em. If they say nothing, it appears its time for him to start paying.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Kenna
In one SC HOA I was a member of, our BOD decided to look at this issue after the declarant turned control over to the HOA. Our lawyer said we could make a case for collecting dues on the lots but the declarant said they would legally fight it. Our lawyer said it could get expensive for us to take it on. We added the numbers up and decided not to persue the issue. Our lawyer agreed.
In my present HOA the Covenants are clearer. The dues do not start until the lot/home is closed on by the purchaser. Meaning the declarant does not pay.
Now I do think one could make a case if the declarant sells to another entity but again back to is it economically worth it.
Hope this helps.
In one SC HOA I was a member of, our BOD decided to look at this issue after the declarant turned control over to the HOA. Our lawyer said we could make a case for collecting dues on the lots but the declarant said they would legally fight it. Our lawyer said it could get expensive for us to take it on. We added the numbers up and decided not to persue the issue. Our lawyer agreed.
In my present HOA the Covenants are clearer. The dues do not start until the lot/home is closed on by the purchaser. Meaning the declarant does not pay.
Now I do think one could make a case if the declarant sells to another entity but again back to is it economically worth it.
Hope this helps.
KennaS (North Carolina)
Posts: 2
Posts: 2
Posted:
It does not say in our paperwork when or if he needs to pay. I want to know what the law is on this. If it does not say should he have been paying for the last 3 years of the HOA?
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
If or when the developer pays assessments is usually a contractual matter and not likely to be found in the statutes. Since the developer wrote the CC&R's he is unlikely to obligate himself to pay.
The CC&R's for my development specifically exempted the developer from payments, but I do not think that is an absolute necessity. That is, there is no obligation for anyone to pay except as specified in the CC&R's, so silence on the subject is the same as no obligation at all.
The CC&R's for my development specifically exempted the developer from payments, but I do not think that is an absolute necessity. That is, there is no obligation for anyone to pay except as specified in the CC&R's, so silence on the subject is the same as no obligation at all.
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