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Does a Builder, who is now a homeowner, pay assessments if he still owns one vacant lot?

Started by HazelS9 replies • 1298 views

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HazelS (Florida)
Posts: 5
Posted:
In this development of 34 lots, the person who sold the lots, stays in the development. He did not build the homes except for his own and his daughter's. He refuses to pay assessments because he has one vacant lot for sell that has not sold. This could take years. We feel that he is a homeowner like everyone else and should pay yearly assessments. He has not in 4 years. Is this legal?

HazelS, Seffner, FL
MaryA1 (Arizona)
Posts: 7,043
Posted:
Hazel,

Without having read your documents I would say no. However, it should be stated in the CCRs exactly what the developer is responsible for. Normally he doesn't have to pay assessments on unsold properties; however, these two properties were "sold" to him and, IMO, he should be paying assessments on them.
KirkW1 (Texas)
Posts: 1,665
Posted:
I will have to disagree with Mary on this and say that likely the unfortunate truth is that it is what your documents say. Not that I think it is right. But many builders write the rules in such a way that this can happen.

The sad thing is that this is unlikely to get resolved without paying a lawyer. Clearly the guy does not have a sense of what is right. In fact, I think that if lawmakers want to help HOAs they should put a cap on how long a developer can stay in control and how long they can avoid paying dues on properties. If they end up with a few lots, they should have to start paying up or get rid of the property.
HazelS (Florida)
Posts: 5
Posted:
I agree that he should have to pay. It's already been four years, the lot is not sold, meanwhile, he and his daughter occupy 2 lots, and not paying assessments? Not right!
MaryA1 (Arizona)
Posts: 7,043
Posted:
Kirk,

My response was made on the premise that I had not read the docs. However, I would find it very unusual that the developer has it written in the docs that he does not have to pay assessments on any property he owns as an individual. I would suggest trying to find out if the properties he and his daughter reside in are titled to him. If they are titled to his corp then he really would have 3 unsold lots that may not be subject to assessments. If it is discovered that the 2 lots are owned by him individually then, IMO, he is liable for assessments, including the back assessments. The BOD would have to see the deeds to know exactly when he purchased the properties. If I were a board members I would go to the Co recorder and research these two properties to see who the owner of title is.
BrianB (California)
Posts: 2,820
Posted:
To add to everyone's good advice, I would wonder if this person (and daughter) get voting rights as well as "enjoy the amenities" of the HOA, whatever they are.

To me, an Owner gets a vote and rights to enjoy amenities... Not always the case for a developer (and never the case, once the HOA is turned over to ownership).
HazelS (Florida)
Posts: 5
Posted:
Thanks to all of you for your good advice. We have gotten an attorney. Once this is settled, I'll post the results.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Hazel - the only thing a lawyer is going to do is look up the turnover papers and see what the developer has put in as conditions of the transfer.

If this has been going on for some time, SOMEONE - especially the Treasurer - should know WHY these particular developed lots with homes have not been paying assessments.

Shame on your board members for not being able to answer this question in a heartbeat!!
MaryA1 (Arizona)
Posts: 7,043
Posted:
Susan,

I believe the reason assessments have not been collected on these 2 lots is because the developer told the BOD he did not have to pay them. Shame on them for letting him bully them!!! As I posted earlier, the mess could be cleared up rather quickly by taking a look at the deeds to these properties. If they are in his name as an individual then he is subject to paying the assessments; however, if they are still deeded to his corp then they are still unsold lots and subject to a deferrment on assessments.
HazelS (Florida)
Posts: 5
Posted:
We check court records and the two properties are listed individually for him and his daughter, so he is a homeowner like anyone else. He has agreed to pay for those lots (going back 4 years), but he still is refusing to pay for the empty lots. As soon as we get legal advice, I will respond. HazelS, Florida.

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