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DennisD14 (Virginia)
Posts: 2
Posted:
We have a common interest community that consists of:
25 (twin) homes
1 SFD home:
Total Doors: #51 Units
Project Construction Start Date: 2005, Last Unit Completion 2015
Developer Sold his remaining 6 units in 2015 from the Developing Company to a sister company and assigned his Declarant Rights to this new entity.

Currently:
Class A (Owner Units): 45
Developer Class B Units: 6
Total: 51
As things stand now, Developer Controls 306 Voting Shares and Class A owners have 45

Questions:
1. Can the sale in 2015 to a sister company be challenged successfully as have been 7 years of no-development and no sales by developer taking place. The new sister entity has rented these (6) constantly. In fact, one current owner who is a class A owner, attempted to buy from the developer several years ago and he refused stating he would rent her a unit but not sell.

2.It appears the A members have no way of taking control unless Virginia has passed other legislation since 2005 to protect consumers retroactively or it can be proven the Declarants actions converted him from a Class B Member to Class A by renting the units out without any sales activity for 7 years.

Suggestions?

TimB4 (Tennessee)
Posts: 21,059
Posted:
I think it would depend if the units under declarant control are being rented or stay vacant for sale.

If they are being rented, you might find a judge to side with the Association but no guarantee.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
While not to play lawyer, but I would believe if a Cert. of Occupancy was filed and the places are rented out then the "owner" like any other owner is one vote per unit. No more Class B shares. Now only Class A, owner shares.
DennisD14 (Virginia)
Posts: 2
Posted:
Completion Date is 2014. I can pull COO but sure it will be 2014-2015.

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