Declarant -Transition

We are finalizing our transition. We have hired a new management company and had an engineering study done, which uncovered many code violations. Even though we presented the violations to the township, they returned the builders bond to him.

The new board is requesting that the builder who is also the Declarant sign a legal document that he has released himself from the Association as Declarant. He and his attorney have refused. Our board attorney is advising the Board that it is in our best interest to have him sign a release for transition purposes. Many on the board do not agree.

Question.. Should Declarant sign a formal release or is transition complete when Declarant deeds over development during transition.

Please advise.

thank you.

Larry,

Our bylaws state that the Declarant has the right to add additional real estate without unit owner permission until 7 years after recording which would be September 2012.

Our attorney has advised our board to have the Declarant sign a release and our Association is willing to pay all attorney fees and have our attorney write it up, however, the Declarant (builder) is unwilling to sign it (per his attorney). I don't understand why he would refuse to sign? His attorney is sayng that he has had nothing to do with the development in years and has no further obligation to our development. I would prefer to have a release but the other board members do not want to spend any more money fighting for the release. One suggested that we have our attorney document that the builder would not sign a release.

Our bylaws state the following on Declarant amending bylaws:

Amendment of Bylaws. These Bylaws may be modified or amended only by vote of Unit Owners entitled to cast a majority of the votes in the Association, except as otherwise expressly set forth herein or in the Act: provided, however, that until the date on which all Declarant-appointed Board members voluntarily resign or are required to resign pursuant to Article 13 of the Declaration (i) Seciton 2.4 hereof, (ii) Section 3.1, hereof, and (iii) this Section 8.1 of the Bylaw may not be amended without the consent in writing of the Declarant.

Again, why wouldn't the Declarant sign a release?

What Roger said.

There is no practical advantage to getting a signed release. If the developer won't sign then let the matter drop.