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Developer went bankrupt

Started by AlisaC1 • 6 replies • 1103 views

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AlisaC1 (Georgia)
Posts: 3
Posted:
The original Bylaws/ covenants read:
The developer as
Cottage Grove Holdings, LLC
This company was dissolved in 2011 leaving 6 multi family lots undeveloped in phase 1 and no development in phase 1-A.
The bylaws only refer to “phase1” and the covenants refer to the phase 1 also.
Someone purchased the remaining lots in phase 1 and all the vacant lots in phase 1-A from the bank.
Since the company was dissolved,
does it make the bylaws null and void, therefore making that there is no longer a “developer “?

PaininyourA
Posts: 215
Posted:
no

the corporation, not the association, was dissolved

the original covenants are still in place

time for an attorney
AlisaC1 (Georgia)
Posts: 3
Posted:
I was almost certain the covenants were still active.
My issue is the person who purchased phase1-A is trying to run the HOA for phase 1. My question is, if the original developer went bankrupt and the LLC was dissolved, do the “bylaws” still stand with a new buyer? Phase 1-A was never written in the bylaws or covenants
DouglasK1 (Florida)
Posts: 2,046
Posted:
If the new owner is trying to assert developer rights this could easily end up in a judge's hands to determine if they have the ability to do so. While the CCRs run with the land, the bylaws may have died with the corporation, but it would really be best to get a legal opinion. Note that even a lawyer's opinion is only a guess at what a judge may decide.
Escaped former treasurer and director of a self managed association.
AlisaC1 (Georgia)
Posts: 3
Posted:
Thank you so much, I have called a lawyer and waiting a call back.
LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By AlisaC1 on 12/12/2017 10:24 AM
I was almost certain the covenants were still active.
My issue is the person who purchased phase1-A is trying to run the HOA for phase 1. My question is, if the original developer went bankrupt and the LLC was dissolved, do the “bylaws” still stand with a new buyer? Phase 1-A was never written in the bylaws or covenants

The new owner of the lots are now the developer.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By LetA on 12/12/2017 11:27 AM
Posted By AlisaC1 on 12/12/2017 10:24 AM
I was almost certain the covenants were still active.
My issue is the person who purchased phase1-A is trying to run the HOA for phase 1. My question is, if the original developer went bankrupt and the LLC was dissolved, do the “bylaws” still stand with a new buyer? Phase 1-A was never written in the bylaws or covenants


The new owner of the lots are now the developer.


NOT always TRUE ... Would depend on the State Laws and potentially whether the buyer had Development Rights transferred to them. In my state if you did not have development rights transferred and just purchased lots ... you would just be another regular Lot owner ... not a new developer.

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