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CharlesP4 (Texas)
Posts: 1
Posted:
I live in a new subdivision in Desoto Texas. The Board of Directors are still the developers until we are 75 percent occupied. Development continues and it appears we are years away from reaching the occupancy. My question: If the management company is not responding to our needs, what are our rights?
HaroldS (Arizona)
Posts: 906
Posted:
Lawsuit? You are at the mercy of the developer until he turns over. Be aware, there is probably a section of your documents that allows him to make changes to the documents at will while he controls. So if you agreed with whatever the covenants were when you bought, they can be changed without your input and become attached to your deed. The management company is employed by the developer and takes orders from him and might even be a subsidiary. Not a good start if you are having problems already and no where near percentage built out. He should be holding at least a yearly member meeting and accounting for your dues payments. And maybe not. While the developer is in control is a really weird time for HOAs. Homeowners can find they have absolutely no say in what goes on.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Charles P4,
Harold is right as rain about this issue. You need to know as much as you can know about how this turn-over all came about and what were the details. You need to know what the restrictions are on the action of the developer, and he has some, but he is not going to tell you. You need to have a complete copy of what he is using to do do whatever it is he is doing if it linked in any way to the Association. You need to know the state laws about associations , you need to know corporation laws if applicable, you need to know and look at Zoning plats and any documents about the association filed at the court house. Right now, he is a business operating as a business, pay a visit to the BBB and see what they say. He probably has a completion date in his proposal to build, you need to get that. Gather all this stuff together and follow leads you uncover and take a sit down with developer, see what he says about all this.
If you are not satisfied and have good cause get fellow members of association and hire a good lawyer, and keep a close eye on him. You aren't asking to appeal before the Supreme Court, you just want to know where you stand and if you don't like it, what you can do about it. Do not put this off waiting for him to suddenly turn concerned neighbor, it ain't gonna happen.
He may be the salt of the earth, make him prove it.

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