RobynO (Michigan)
Posts: 2
Posts: 2
Posted:
Per our bylaws/master deed, we have reached the point in our subdivision where the Developer should hold the "initial meeting" for the Home Owners Association and the residents should elect a Board of Directors. Having dealt with the developer for a number of years, we have no reason to believe this will happen as prescribed by the documents. Our question relates to what happens now? Does the association automatically become ours based on the documents? Or is there something we could/should do to make it happen?
Mixed in with trying to figure this out is question of whether we want to take over the association. We do understand that without it, the residents have no recourse for other co-owners "breaking" the association rules, but the bigger threat as perceived by my neighbors is that the Developer change specifications on the unsold lots unless we control the Association. Having read his documents, I have my doubts ownership of the HOA would make any difference there one way or the other. In addition to the standard "unilateral amendments by developer" as long as it doesn't "materially alter the rights of any co-owner" language - there is also a clause that states:
"The Developer may also make a material amendment unilaterally without the consent of any Co-owner or mortgagee for the specific purposes reserved to the Developer in this Master Deed. Until the completion of sale of all Units as described in Article 1.0, such rights reserved may not be further amended except with written consent from the Developer or its successors or assigns."
I'm not a lawyer and I may not understand all the nuances (or if there are legal limitations to this claim)- but to read this, it appears that he can do anything he wants until the sub is complete regardless what we do. Am I correct on that or not?
My neighbors further seem to think we could stop any changes after we are notified as residents that the Developer wants to change the Master Deed. But it sounds to me like, provided the changes are within the city ordinances, we'll have very little recourse. Or am I interpreting that incorrectly?
Any guidance would be greatly appreciated.
Mixed in with trying to figure this out is question of whether we want to take over the association. We do understand that without it, the residents have no recourse for other co-owners "breaking" the association rules, but the bigger threat as perceived by my neighbors is that the Developer change specifications on the unsold lots unless we control the Association. Having read his documents, I have my doubts ownership of the HOA would make any difference there one way or the other. In addition to the standard "unilateral amendments by developer" as long as it doesn't "materially alter the rights of any co-owner" language - there is also a clause that states:
"The Developer may also make a material amendment unilaterally without the consent of any Co-owner or mortgagee for the specific purposes reserved to the Developer in this Master Deed. Until the completion of sale of all Units as described in Article 1.0, such rights reserved may not be further amended except with written consent from the Developer or its successors or assigns."
I'm not a lawyer and I may not understand all the nuances (or if there are legal limitations to this claim)- but to read this, it appears that he can do anything he wants until the sub is complete regardless what we do. Am I correct on that or not?
My neighbors further seem to think we could stop any changes after we are notified as residents that the Developer wants to change the Master Deed. But it sounds to me like, provided the changes are within the city ordinances, we'll have very little recourse. Or am I interpreting that incorrectly?
Any guidance would be greatly appreciated.