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SteveH20 (South Carolina)
Posts: 32
Posted:
Does anyone know if there is a law that requires common areas be in good condition when the Developer formally transfers (deeds) the property to the HOA?

I live in South Carolina.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It's more of a "Punch list". Just like when you purchased your home, there was a list of things you wanted/needed fixed/modified before you bought it. It's best prior to the turnover, that you form a committee to go over some of these items. Which does include maybe modifying your HOA documents to remove all references to the developer in them. It's better they do that than you all. That may be a "punch list" item.

It's good now to get people involved and work out the details. These people can also help toward being the first elected board by their work. I am sure if they do a good job, people will want to elect them. If not, then you can all weed them out at the first election. It takes some time so it's good now to get a committee going for turnover.

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
Steve,

Since SC does not have an HOA law (they do have Condo laws), the details will be in your governing documents. If your governing documents are silent, then it might not happen until the final property the Declarant owns is sold.
SteveH20 (South Carolina)
Posts: 32
Posted:
Our development is only 45% complete and the developer, per the CC&Rs, has the right to transfer the common areas whenever he chooses. He recently transferred several common areas that are not in good condition to get the HOA to pay the property taxes.

I saw a recent court case (account in a small newspaper) where a judge did not allow the transfer of community center until it was repaired, stating it was a state law. I have not been able to find the source, maybe the account was not correct? If all else fails I will contact an attorney.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Steve,

I have read that there are published court opinions (a.k.a. common law) holding that facilities must be in good condition when the developer turns them over to the homeowners.

My information came from a weekly column in my local paper over a decade ago. I have not personally read the opinion. Because common law is very difficult for the average person to research I would recommend consulting with an attorney.
GlenL (Ohio)
Posts: 5,491
Posted:
Steve, you might want to contact your local Zoning Board, often developers must post bonds which they get back when certain parts of the development are completed. They are there to insure the work promised is up to code.

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

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