Developer Issue

Started by BarbaraC1 • 5 replies • 1042 views

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BarbaraC1 (North Carolina)
Posts: 3

Posted:

When a developer turns over a community to an HOA, would the title of the roads transfer automatically? We are having an issue with the DOT not accepting our roads until a punchlist is completed and the developer has been dragging his heels. The community has been turned over to the association. Thank you.

JohnO6 (Georgia)
Posts: 424

Posted:

As is often the case, the devil is in the details here. Let me assume that you have homes (either fee simple or condo) in the community as well as common area. The answer is going to be in what, in your case, is exactly meant by the developer "turning over" the association.

The key question is who owns the roads, the association or the developer?

Most often the developer "turning over" an association means that (s)he gives up his right to unilaterally appoint the Board of Directors. If that is the case here we return to the question of whether the association owns the streets or the developer.

Finding the answer to that should answer your other questions and give you a path forward.

BarbaraC1 (North Carolina)
Posts: 3

Posted:

Hey John,
Thanks for your reply. Community completely built out (80 homes). Board has been established, developer no longer a board member. Turnover of HOA to homeowners approx. 3 years ago.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By BarbaraC1 on 09/12/2008 5:38 AM
When a developer turns over a community to an HOA, would the title of the roads transfer automatically? We are having an issue with the DOT not accepting our roads until a punchlist is completed and the developer has been dragging his heels. The community has been turned over to the association. Thank you.

Barbara,

To answer your question: "would the title of the roads transfer automatically?" The answer is "NO". If the roads are titled to the developer or his constr. co, he must prepare a new title in the name of the assn and have it recorded. What, exactly, is this "punchlist" that is required by DOT?

BarbaraC1 (North Carolina)
Posts: 3

Posted:

Thank you, Mary! The punchlist consists of many items that need to be addresses, some by homeowners (removals of trees, bushes, etc.) all of which have been done, the other items involve repaving and construction...rough est. is approx. $30K.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By BarbaraC1 on 09/12/2008 6:19 AM
Thank you, Mary! The punchlist consists of many items that need to be addresses, some by homeowners (removals of trees, bushes, etc.) all of which have been done, the other items involve repaving and construction...rough est. is approx. $30K.

Barbara,

Some states have certain laws the developer must abide by. In AZ the roads must be constructed b/4 the houses are built. So, the developer is dragging his feet on turnover because he doesn't want to complete construction of the roads? If the h/o's were smart they wouldn't push for turnover until the roads were complete. This should be done at the developer's expense not the members'. But, of course, that all depends upon what your state law says too.

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