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KimR4 (Florida)
Posts: 33
Posted:
My friend is interested in purchasing a new condo. Not built yet. She asked me to come with her to see the models and talk to the sales person. This development was started in 2004. Building stopped around 2007-8, resumed 2013. I asked the sales person if the development was still under the developer. She said yes. I questioned that since their bylaws say turnover is 5 years or 75% developed, whichever comes first. The sales person said that the 5 year requirement was put on hold - the clocked stopped on it - when the building stopped.

Is that true? The condos that were occupied in 2004 could not have expected turnover in roughly 2009 because building in the development stopped?
BobD4 (up north)
Posts: 1,002
Posted:
What could be scarier ? buying a condo "merely from plans" ? or buying into a shaky venture ?
GenoS (Florida)
Posts: 4,276
Posted:
I'm very surprised they haven't changed the bylaws. Until turnover the developers usually retain the right to unilaterally amend the governing documents. If they couldn't even bother to do that, what else might they be willing to cut corners on?
LarryB13 (Arizona)
Posts: 4,099
Posted:
Kim,

I would suggest that your friend look elsewhere. One of the lessons that comes from this forum is that buying into an incomplete development is risky because developers have a history of not following through on their promises.

This condo is scary. The declaration says the developer is in control of the association until either five years have passed or it is 75% developed. His five years were up six years ago and apparently after eleven years he has yet to sell 75% of the units.

DouglasK1 (Florida)
Posts: 2,046
Posted:
As Geno mentioned, as long as the developer has control, they have the voting power to unilaterally modify the bylaws and CCRs. This includes not only changing the criteria for turnover, but anything else they want too. They could reduce the minimum square footage for new units, add new parking restrictions, require all units to be painted purple with orange trim if they so desired. If they didn't modify the bylaws to change the turnover date and just informally decided that, they seem to be lazy too.

Escaped former treasurer and director of a self managed association.
BobD4 (up north)
Posts: 1,002
Posted:
Could the salesperson have meant that without as-builts, the Declaration could not be registered and lenders funds released ?

And without which no governance documents are applicable at all ? Nor restraints on developer other than the legislation or lenders ?

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By DouglasK1 on 08/12/2015 5:21 PM
As Geno mentioned, as long as the developer has control, they have the voting power to unilaterally modify the bylaws and CCRs. This includes not only changing the criteria for turnover, but anything else they want too. They could reduce the minimum square footage for new units, add new parking restrictions, require all units to be painted purple with orange trim if they so desired. If they didn't modify the bylaws to change the turnover date and just informally decided that, they seem to be lazy too.

I agree with Geno and Doug. The place is "shaky". Best your friend walks on by.
KimR4 (Florida)
Posts: 33
Posted:
Quote:
Posted By JohnC46 on 08/12/2015 5:28 PM
Posted By DouglasK1 on 08/12/2015 5:21 PM
As Geno mentioned, as long as the developer has control, they have the voting power to unilaterally modify the bylaws and CCRs. This includes not only changing the criteria for turnover, but anything else they want too. They could reduce the minimum square footage for new units, add new parking restrictions, require all units to be painted purple with orange trim if they so desired. If they didn't modify the bylaws to change the turnover date and just informally decided that, they seem to be lazy too.


I agree with Geno and Doug. The place is "shaky". Best your friend walks on by.

Yeah. That's what I thought. Thank you everyone.

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