Texas HOA

Started by RickM5 • 2 replies • 1135 views

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RickM5 (Texas)
Posts: 1

Posted:

In the state of Texas, when does the HOA take full possession of the common areas and are these common areas deeded to the HOA from the developer without a realestate purchase transaction?

Thanks,
Rick

MaryA1 (Arizona)
Posts: 7,043

Posted:

Rick,

You may want to check TX HOA statutes. But your CCRs should state when turnover occurs. In my CCRs it's under the article titled "membership, voting rights" and deals with Class A (the members) and Class B (the developer) membership. Under the Class B membership section it should state when the Class B membership ceases and is converted into Class A membership -- this is called transition. Usually it's when a certain % of the lots have been sold; or on a specific date; or "such earlier time as the declarant shall designate in writing".

There is no monetary transaction that needs to take place when the declarant deeds the common area parcels to the assn. All he has to do is prepare the deed(s) and have it recorded with the Co. Recorder, then pass on the deed(s) to the HOA BOD.

LynetteB (Texas)
Posts: 141

Posted:

RickM5,
Our developer deeded our common properties to us in 2007, however, he still owns lots and according to our docs, he maintains the "control" until he sales all of his lots. He can do an early control transfer and give up his developer rights. There was no purchase transaction, we just received the deed in the mail.

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