If a real estate company purchased unsold lots from the developer, must they pay dues these undeveloped lots?

If a real estate company purchased unsold lots from the developer, Doesn't the real estate company have to pay dues for these undeveloped lots? I live in Michigan. I am asking because our president owns several properties in our area (not within our hoa) and the local real estate company CEO and him are business partners. Our dues have recently increased. I was told it was because we are no longer getting dues on undeveloped lots owned by the real estate company. I don't think that's legal. Is it? I know that the developer is exempt from paying, but luckily the developer was paying on the empty lots, but now that they are sold, we aren't getting dues? Doesn't make sense to me. Can anyone out there advise?

Unless your CC&Rs or state law exempt real estate companies, they would be treated like any other owner. It's hard to imagine a situation where an owner that is a company would be treated differently than an owner who is a private person.

As to how undeveloped properties are treated, that should be specified in your CC&Rs.

Here is what the bylaws state. I see nothing that addresses a group of lots being sold to a real estate company and exempts it from paying dues.

Developer's Responsibility for Assessments.

The Developer of the Condominium, although a member of the Association, shall not be responsible at any time for payment of the annual Association assessment. The Developer, however, shall at all times pay all expenses of maintaining the Units that it owns, including the improvements located thereon, together with a proportionate share of all current expenses of administration actually incurred by the Association from time to time, except expenses related to maintenance and use of the Units in the Project and of the improvements constructed within or appurtenant to the Units that are now owned by Developer. For purposes of the foregoing sentence, the Developer's proportionate share of such expenses shall be based on the ratio of all Units owned by the Developer at the time the expense is incurred to the total number of Units then in the Project. In no event shall the Developer be responsible for payment of any assessments for deferred maintenance, reserves for replacement, for capital improvements or other special assessments, except with respect to Units owned by it on which a completed building is located. For instance, the only expense presently contemplated that the Developer might be expected to pay is a pro rata share of snow removal and other road maintenance from time to time as well a pro rata share of any administrative costs which the Association might incur from time to time. Any assessments levied by the Association against the Developer for other purposes shall be void without Developer's consent. Further, the Developer shall in no event be liable for any assessment levied in whole or in part to purchase any Unit from the Developer or to finance any litigation or other claims against the Developer, any cost of investigating and preparing such litigation or claim or any similar or related costs. A "completed building" shall mean a building with respect to which a certificate of occupancy has been issued by the City of Taylor.

Nothing in your CCRs?

Diana,

As others have said, it will depend on your governing documents and the terms of the purchase.

If they simply purchased the properties and the governing documents support, then they pay assessments.

However, if they also have any declarant rights, it possible that they will not pay assessments.

Suggestions:

1) ask the builder what the terms of the purchase were.
2) Send a bill and see what the response is.
3) Contact an attorney, who can have access to all relevant documents, and ask for a legal opinion.