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MaureenM1 (PA)
Posts: 344
Posted:
We are in the processing of transition. Our Declarant (builder) resigned and a new 5 member resident board was elected. The Declarant has been deeding the common areas to our Association.

The Board has asked through our attorney to the Declarant's attorney to prepare a formal document releasing him from Declarant and to record it. He has refused.

He has also refused to repair or replace any deficiencies in the development. The township has inspected (shotty as it was) and returned his security monies to him. The Board sent the deficiency report that was conducted by our Engineer to the township and Declarant's attorney both have ignored it and as stated before the Township returned his security monies and his attorney has sent our attorney letters stating that the Declarant is no longer responsible.

We do however, want him to have a legal document prepared to release him as Declarant.

He has also left us with 15 investor homes in a 40 home development which he sold for 1/2 of what most homeowners paid. We are at 45 percent rentals and cannot apply for Fannie & Freddie approval due to the structure of the investor properties.

We cannot afford the legal fees to sue our builder, however, is there ANY recourse, through our state and local representatives?

Our board attorney said we are in an unfortunate situation (which I know we are). ANY advice would be appreciated.

thank you.
TimB4 (Tennessee)
Posts: 21,059
Posted:
As your attorney said, you are in an unfortunate situation.

Since the town released the bond back to the developer, that route is no longer available. Therefore, if the developer is unwilling to address the concerns, then you may have no choice but legal action. If you have no funds to pay for legal action you may want to consider a special assessment.

If the deficiency is on the common areas, you could refuse to accept them until the issues are addressed. This may or may not apply some pressure.

I know it's not what you wanted to hear, but I hope it helps.

Tim

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