BradS6 (Georgia)
Posts: 1
Posts: 1
Posted:
Several years ago, I was on the Board of a new community as we turned over from the builder/declarant. Immediately after the board was elected, the builder assigned a liaison to work with us, handed us a reserve study from an engineering firm and binders with all of the plats and documents from the community, and worked with us to create a punch list of items that needed to be addressed. Shortly before turnover, the declarant had taken a $14k note from the builder. Although the builder ended up completing nearly everything on the punch list, they used forgiveness of the note as leverage against unreasonable requests. Once everything was negotiated and completed, the builder had the board sign a "Turn-over Agreement" that was like a Release and Settlement. If released the builder from future claims or liability and also served to forgive the $14k note.
Approximately 5 years later and we built a new home and I recently became the President of the 3 person Board. The community has 68 single family homes. Having facilitated the turnover process once before, I thought I was well positioned to do it again and expected a similar process. This time, it is going completely different. The builder/declarant wasn't even at the annual meeting and provided the new board with nothing. Immediately after turnover, the Board constructed a punch list of items that needed attention from the builder. It included everything from asking the builder to provide a reserve study to fixing crooked stop signs, addressing drainage issues on common property and asking the builder to turnover documents and plats. We presented the builder with our requests in writing and then did a walk through with them to point out deficiencies.
The builder just responded back today "No's" to many of the items on the list. Although they agreed to fix some of the easy stuff, they said no to things like providing a reserve study, addressing areas of dirt that they failed to sod/landscape, etc. Is there any laws or regulations in Georgia that govern this turnover process? Is the builder required to correct deficiencies? Does the new Board/HOA have any leverage or can the builder/developer just walk away?
Thanks in advance for your feedback!
Approximately 5 years later and we built a new home and I recently became the President of the 3 person Board. The community has 68 single family homes. Having facilitated the turnover process once before, I thought I was well positioned to do it again and expected a similar process. This time, it is going completely different. The builder/declarant wasn't even at the annual meeting and provided the new board with nothing. Immediately after turnover, the Board constructed a punch list of items that needed attention from the builder. It included everything from asking the builder to provide a reserve study to fixing crooked stop signs, addressing drainage issues on common property and asking the builder to turnover documents and plats. We presented the builder with our requests in writing and then did a walk through with them to point out deficiencies.
The builder just responded back today "No's" to many of the items on the list. Although they agreed to fix some of the easy stuff, they said no to things like providing a reserve study, addressing areas of dirt that they failed to sod/landscape, etc. Is there any laws or regulations in Georgia that govern this turnover process? Is the builder required to correct deficiencies? Does the new Board/HOA have any leverage or can the builder/developer just walk away?
Thanks in advance for your feedback!