Liability before the Developer turns over control

Started by RobynO • 1 replies • 1473 views

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RobynO (Michigan)
Posts: 2

Posted:

We live in a site condominium community in Michigan. The builder/developer has not yet turned over the association to the residents. We are wondering who is liable for the common area at this point. Is it solely the builder until the association is turned over or do we as residents/co-owners have any current liability?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Robyn,

Liability rests with the HOA which the builder should have set up already. In AZ, he HOA must be incorporated b/4 the developer can even start building. While the developer is in control he may carry liability ins on the property through his homebuilding corp, but once the members take over then the BOD will be resp. for purchasing liability and other types of insurance.

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