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JoanD1 (New Jersey)
Posts: 2
Posted:
I am a Board member of a Condo Association in the midst of transition. The builder's rights to vote
have been halted due to the transition. Is this legal and once the transition is complete, will the
builder's seats be reinstated to be allowed to vote?
KerryL1 (California)
Posts: 14,550
Posted:
For starters, carefully read your governing documents especially your bylaws and CC&Rs.

Then, what do you mean by "legal"? Do you and other board members have concerns about the developer's rights? Or, what? Tell us more.
JoanD1 (New Jersey)
Posts: 2
Posted:
I see nothing in the By Laws or any other papers that indicate this break in voting for the builder is noted.
It is true that the builder will have only one seat on the Board but he does own several units and wondered
if after transition he could vote.

Has anyone ever heard of this and if so, would like to hear your take.

There had been a settlement agreement with the builder on other matters, but nothing about the voting was
mentioned in that.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Joan

Are you transitioning from builder to owner control?

Are you saying the builder will automatically get on seat on the BOD?

If the builder is also a dues paying homeowner then I say he has all the rights of an owner. Meaning he can run for office and/or vote as any owner can. He gets no more nor no less privileges then any owner.

JimR24 (Texas)
Posts: 399
Posted:
In our own situation, the builder would have a spot if he qualified as a homeowner "Member" - as defined by our governing documents. Otherwise, he/she would have no standing.

Just my $.02 worth.

oljim, in texas


Lovin' life with my honey!
and, President of HOA in Texas
KerryL1 (California)
Posts: 14,550
Posted:
You wrote Joan, "The builder's rights to vote have been halted..." Who halted them? What was the reasoning?

Why does he get or retain a seat on the Board?

Do your documents say every owner get to vote due to membership in your HOA? Can voting be suspended because of failure to pay dues and the budder is not paying dues?? I feel like something important is missing.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Joan,

From my understanding, the rights you speak of are typically where the builder loses multiple votes per unit. Since the Builder would/may still own units, as a member they would be entitled to what every other member is entitled (typically 1 vote per unit or a % of votes based on the size of the units).

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