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Developer (declarant)/ Homeowner relationship at transition

Started by RobertR1 • 12 replies • 1559 views

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RobertR1 (South Carolina)
Posts: 5,164
Posted:
On the left side of this page is a lawyers link for SC Hoa/condo info.
They post interesting subjects on their blog.
Check out the latest on Transition/Turnover considerations. I would think even though it is a SC specified information this one will apply across states.
It is pretty daunting but true and for those contemplating legal action sets the stage. Anyone reading this post that has questions this subject would be wise to read this. It doesn't say you can't do it or you shouldn't do it, just know what you are doing.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Robert,

If SC is like the majority of other states (at least I believe it's a majority!) there is no law addressing transition. Experts have written what should be discussed, checked out, etc during transition, but w/o laws the h/o's can be left holding the bag if the declarant doesn't want to be agreeable.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mary,
Don't know how accurate your estimate is so I sure would take your word.
Even if there are no laws legislated, I would think there are cases that have been adjudicated by the courts. Seems probable anyway. These cases could be used to support an application by an HOA.

And of course in criminal conduct is the issue, all states would have an interest. So the SC AG office tells me.

I will see if I can find out anymore about this SC stuff.

Thanks.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mary,
Here is the article as referenced:

South Carolina Community Association Law Blog published a new entry entitled "Issues Concerning the Enforcement of Claims against Declarants" on 4/6/2009 12:58:17 PM, written by Ryan McCabe.

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Issues Concerning the Enforcement of Claims against Declarants

An association board knows about the difficulties that arise when attempting to collect assessments and fines due. A similar problem emerges when a declarant or developer transfers the property to the association and abandons its continuing duties. The association is then forced into bringing claims against the declarant to recover for defects, maintain common areas, and enforce any other remaining obligations.

Mark L. Hankin addresses some of the issues related to a suit by an association against a declarant in the February 2009 issue of the Habitat. Mark L. Hankin, Brand New Board and Shoddy Construction: A Case Study, HABITAT, Feb. 2009. One such issue is the legal status of the declarant. The type of entity is a factor in determining who may be held liable as a declarant. In Hankin's example, the two partners facing potential liability were pointing fingers to each other. Such disagreements may be a distraction to the claim that may delay payment or repair. The association should focus on pursuing all parties possibly liable.

While a conflict among defendants may impede immediate remedy, defendants in disagreement may be helpful in resolving the liability issue. The more defendants blame each other, the more facts they reveal that determine the parties at fault. In addition, remember, such defendants are most likely jointly and severally liable. Each partner in Hankin's case is liable for the entire am! ount due.

As Hankin points out, litigation is usually necessary to resolve an association's claims against declarant. The conflict may last years and the resolution may only partially meet the owners' needs. In addition, recovery never includes legal fees.

This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.

Permalink: sccommunityassociationlaw.com/2009/04/06/issues-concerning-the-enforcement-of-claims-against-declarants.aspx

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MaryA1 (Arizona)
Posts: 7,043
Posted:
Robert,

That lawsuit dealt with claims against the developer for certain things guaranteed by the assn's gov docs. What I was referring to is making statement that the declarant should do this or that during transition w/o benefit of a law to back up the claim. In other words, saying an audit should be performed. Unless the bylaws address a transition audit and there is no state law addressing it then it really is not a requirement. Something like this could not be adjudicated.
DavidW5 (North Carolina)
Posts: 565
Posted:
Robert,

I don't see any link on the left related to SC or lawyers. Can you post the link in a message?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
David,
Go back to discussion page. Highlighted in yellow first link on left.

And while you are on discussion page scrool down and click on my post about this subject, posted yeaterday. I copied the whole article and included it in this thread.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
David,
Also once you post a message on a thread another screen will come up showing entirew thread, scroll up and look for yellow highlights on left.
DwightT (Idaho)
Posts: 664
Posted:
Sorry Robert, but for me the first link in the yellow bar on the left is 'Banking Solutions for Community Associations'. No SC Lawyers at all.

The Sponsors list is probably generated for each user based on what they put in their profile. Since neither I nor David are in SC, the SC Lawyers ad would be irrelevant to us so we don't see it. If there are sponsors that are local to either of us, then we would probably see them, but you wouldn't.

Just part of the magic of the Internet.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Robert,

I see the same thing as Dwight in the yellow bar. Perhaps you're just a special person!! :-)
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mary and all,
You got that right, I am a special person........for good........for bad.

But to get back to the article, scroll up this page and look at my posts. One of them will contain the complete article with credits to the author.

If that don't woprk, just come on down buy a place here and you too will be a special person.

In fact the Low country motto is: Beautiful Places and smilin faces.

Check us out: http://www.villageofnewhaven.info/index.html

You too can be special, but you just be sure you are going to be a full time resident.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Robert,

Well, that's a bummer; I can only be special if live there! I did read your article; does that count for something? :-)
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mary,
Yes, if you agree with me.
So far I have had 0 applicants.
Maybe there is a message in that.
Woe is me!

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