What is the negative effect of litigation against a developer?

Generally, lawsuits aren't good for a community's reputation because no one wants to move into a community with lots of legal drama that may wind up with everyone paying special assessments and huge regular assessment increases. However, there is no single answer to this because there are too many variables - what are the issues in the lawsuit, how many homeowners are involved, is the community still developer controlled, etc.

That's how it is with lawsuits of any kind - it's easy to sue, but you also have to think about whether or not your case is strong enough to win or at least increase your chances, can/will the defendant satisfy the judgement, do you have the money and patience to go through appeals that may take years, etc. If you really believe the benefits outweigh the disadvantages, go forward, but if you don't have to resources or guts to stick with it, you may have to consider another course of action.

Thank you Shelia,

It is not so much a guts issue. I don't want to damage the community any more than the developer and 2008 already has. I just wondered if anyone had experienced it in their community. My greed and self interest will never overpower my integrity in any situation, unless it's the best spot on the Beach to put my chair

Senders often are reluctant to lend when the HOA entered into any kind of sizable lawsuit.

So long -- 11 years? -- after turnover, mind my asking what kind of litigation you have in mind?

The litigation was not my idea, my attorney suggested it after a three hour examination of all the documents, plats, Master Deed and the State Law.

Breach of contract, fraud and nine other issues were on the list. I'm not doing anything without a whole lot of input from everyone on here and talking with everyone in the entire community. My attorney was throwing out some examples with huge sums of money that might be of interest to the community but I don't want anyone to be negatively affected. It is a nice place to live, it's our home, so it's not just about the money and I won't make this move without everyone or at least the majority wanting it to happen. It is not just about me.

Elaine,

Get a second opinion.

Also keep in mind that winning a legal case and collecting any money that is awarded are two different things.

Your examples of trespassing are inaccurate.

Look up: Easement by virtue of necessity.

Talk to the Postmaster re: mail delivery

Really, get an actual life instead of kvetching to people like me.

And of course he billed you for the consult and is more then willing to bill you to proceed. So break out the checkbook have at it. Otherwise take your chair to the beach and chill as you have been doing for 11?? years.

Thank you John and Pain,

I will not mention my Null parcel, Developer surrounded property again Mr.John and Mr pain.

Thank you for your kindness and consideration in this matter.

Have a great Day,

I believe reading another post the OP's attorney is a Real Estate attorney. Which may not be the best selection for these issues. We know that HOA's don't really deal with real estate. The developer does. So may be a bit of confusion on the exact focus of the issues.

Good advice ... lawsuit should be a last resort ... when nothing else works.



Yes ... In my last HOA we sued two developers and had to also list the HOA (which was under Developer Control). The two developers conspired and changed our CCR's behind owner's backs and without their proper consent for items which were not under our State Law properly "Reserved" by the developers as having the right to change.

The illegal amendment was filed in January and we had one year from the time it was filed with the County Records to file a lawsuit, otherwise the changes would become permanent. We had many meetings with the new Developer pointing out the law violations and they just did not see the light until they ended up in the middle of a court battle. The problem was the Developers drastically lowered the standards for the homes to be built and which would drastically reduce the values. This was done not only in my prior subdivision, but also in another close neighboring town subdivision by the same new developer. The other subdivision did not file a lawsuit as there were only two homes at that time to share the cost of initial legal fees.

One homeowner in the other subdivision decided to just go ahead and try to sell ... they ended up having to do a short sale with a loss in value of $170,000. In my subdivision one owner decided to also short sale. They purchased their home for $400,000 and the short sale was for $255,000. Keep in mind these sales were potentially most likely due to the illegal Amendments filed which reduced the size and other items on the potential future homes.

The major issue my family had is unlike others who put minimal down payment for their homes and the Secured Creditor ate most of the loss in the short sales ... we on the other hand would have a major loss while the mortgage company would come out OK ... because we had a large down payment. We were in a hard spot where we had to fight for our rights. In the long run via the Court battle we did receive back the majority of what was taken from our CCR's with a few minor concessions. We then waited while they constructed the other homes.

The new developer's snafu ended up costing them a lot of money ... because I made them abide 100% to what was agreed and when any issue came up such as they broke an irrigation main line (which was found because original developer did not have in proper easement) I forced them to move it into the proper easement. LOL ... they thought they would just have their new owner sign over part of their lot as becoming an extra part of the easement. They also initially tried submitting a home that met the total SF minimum for that lot as a two story, but the total SF was for the ground floor. Essentially I was on them for 5 years like "stink on shit" ... they could not do anything without me knowing because I was always looking at the County Record documents filed for our association and knew when they sold a lot and I also would pull any home plan the submitted to our local city. Developer pretty much could not take a dump without me knowing about it ... LOL. They also had a home where they screwed up the garage ... YEP ... that had to go before the City Board of Adjustments. While I had to recuse myself from voting on that issue (as a member of that board) ... I could be there as a Citizen because it was MY neighborhood. Again ... another snafu which cost them a lot of money.

After they built out and in the end when we sold we potentially lost $30,000 +/-; however, if we had not fought and just laid back and accepted what was being dished out ... we would have lost a lot more as I already noted above that others lost when they were not willing to fight.

Again ... it depends on what you are fighting for and how much you can loose if not fight for what is right. What was really stupid is while we settled the developer had to return most of what they took out of the CCR's and was out of pocket for their Attorney fees AND our attorney fees plus a little more. And for what we tried to get them to agree to initially to avoid a Court battle in the first place. YEP ... sometimes it is difficult or impossible to fix stupid!!!

Understand how development works. EXAMPLE: A developer will buy 100 acres of land. They will then divide that into 1 acre lots. Those lots are then sold to people who hire a builder to build a home. (Sometimes the Developer will be the same as builder or teamed up with one). They then will build a house to the approved design.

The developer/builder make their money during this "build out" period. They may offer certain amenities like a pool, clubhouse, or other attractions to increase sales. They also form a HOA to also attract potential buyers. The HOA concept is sold as you have control of what your neighbor/neighborhood does to keep it attractive to potential buyers. HOA's are to ATTRACT potential buyers. They do NOT have anything to do with HOME VALUES. Home values are REAL numbers. You can't measure what is attractive to a potential buyer. (I did not buy a home because hated wallpaper. Sale price stayed the same).

Now the developer usually wants out of the HOA business once they are finished building. They don't want the long term maintenance costs of keeping amenities or property. They turn over the HOA to the owners to take responsibility of that and the managing.

The developer may want to do a phase situation and build on adjacent land. Our HOA we are allowed to purchase additional property if we choose. However, that's not worth it as we aren't in the real estate business. We are in the non-profit corporation business. The developer is the one that would benefit by addition to the HOA. They get more customers and sales.

So your HOA isn't really into the real estate even though it involves homes/property. Not sure what your beef is with the developer. That is still a bit unclear.

I would do as your attorney suggested and file with your Title Insurance. See what your Title Insurance states. Then if nothing from Title Insurance ... here is the hard part as we cannot view your documents ... depending on what was promised in your CCR's which only you and your Attorney can see ... you might consider filing with both your local and state attorney general offices. If I knew at the beginning of my last HOA garbage what I know now ... that would have been the FIRST thing filed. What we learned at the end was that the Developers actually violated many criminal laws such as Theft of Contract, Real Estate Fraud, and because did same in more than one subdivision in more than one location Criminal Racketeering. Live and learn ....

'google': statute of limitations

YOU put 2006 in YOUR post.

When, exactly, did you purchase ?

What filing date, exactly, does your certified copy of the declaration show ?

If YOU are confused what do you think a judge would be ?

Omnipotent ?
All seeing ?

or

Might you hear the words 'case dismissed' (albeit possibly w/o prejudice) ?

meter @ 100%

OUT

SECTION 27-31-60. Property rights of apartment owner.

(a) An apartment owner shall have the exclusive ownership of his apartment and shall have a common right to a share, with the other co-owners, in the common elements of the property, equivalent to the percentage representing the value of the individual apartment, with relation to the value of the whole property. This percentage shall be computed by taking as a basis the value of the individual apartment in relation to the value of the property as a whole.

The percentage shall be expressed at the time the horizontal property regime is constituted, shall have a permanent character, and shall not be altered without the acquiescence of the co-owners representing all the apartments of the property.

The basic value, which shall be fixed for the sole purpose of this chapter and irrespectively of the actual value, shall not prevent each co-owner from fixing a different circumstantial value to his apartment in all types of acts and contracts.

(b) The owner of any apartment embraced in the master deed and building plan shall have the right to require specific performance of any proposed common elements for recreational purposes set out in the master deed which are included in the next stage of the development that applies to recreational facilities in the event the additional stages of erection do not develop.

HISTORY: 1962 Code Section 57-499; 1962 (52) 1866; 1967 (55) 449; 1973 (58) 783.

SECTION 27-31-70. Common elements shall not be divided.

The common elements, both general and limited, shall remain undivided and shall not be the object of an action for partition or division of the co-ownership. Any covenant to the contrary shall be void.

HISTORY: 1962 Code Section 57-500; 1962 (52) 1866; 1967 (55) 449.

SECTION 27-31-80. Use of common elements.

Each co-owner may use the elements held in common in accordance with the purpose for which they are intended, without hindering or encroaching upon the lawful rights of the other co-owners.

HISTORY: 1962 Code Section 57-501; 1962 (52) 1866; 1967 (55) 449.

The developer put 12/31/2016 on each phase of the developement as a completed, Annexed, recorded and transfered before 12/31/2016. I'll take a jury trial please. Because the state Law is the Law without doubt and you can only follow the law. The developer put the date for everything to be completed out an entire 10 years in the Master Deed. The statute of limitations from the absolute stated Master Deed completed closing date of 12/31/2016 is certainly not up yet. Is the recorded Master Deed an issue. Duh...YES I'll be happy to take the 56 co-owners with our Title Insurance Attorneys, personal attorneys and President Donald J Trump to court with me If I have to because my HUGE developer is giving ALL developers a bad name.

Breach of contract, fraud and nine other issues were on the list. It is not personal it is just business.

Have a great day!