Developer(Declarant) Default Breach

Started by RevellR • 7 replies • 1853 views

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RevellR
Posts: 3

Posted:

Does anyone know if the Covenants agreement is enforcable if the declarant defaulted on all it's obligations in that agreement for more than a year? The declarant is the developer. It basically is a complete breach of the declarant's fiduciary responsibilities under the contract.

GlenL
Posts: 5,429

Posted:

Yes they are the Covenants run with the land.

MaryA1
Posts: 6,993

Posted:

Revel,

As Glen says, the covenants are enforceable because they "run with the land", meaning they are everpresent. If the declarant is not enforcing the covenants then the members have a right to do so. However, exactly how has the declarant "breached his fiduciary resp"? Aside from not enforcing the covenants, what else has he not done? Is the developer still in control of the assn? How many lots; how many completed?

RevellR
Posts: 3

Posted:

Thanks Mary, and Glen.
The Declarant had the control of the association which had responsibilities collecting dues and maintaining the community. None of which had been done for more than year. We just went to civil court and were awarded declarant rights.

MaryA1
Posts: 6,993

Posted:

Revel,

First of all, let me congratulate you on your court win!

Now the members can elect a board of directors to manage the assn. Now the fun begins!! LOL

Good luck!

RuthaC
Posts: 9

Posted:

We are blessed with our covenants but the Board decided to make a couple of paragraphs more clear and not change the meaning. Since the covenants run with the land, and ours have been recorded since May 1988, can the new Association change the covenants in any way?

MaryA1
Posts: 6,993

Posted:

Ruth,

It's likely that your CCRs give the BOD the power to interpret the covenants and perhaps that is what they have done.

In answer to your question: Yes, the covenants may be amended! There should be an article in the CCRs explaining the procedure for amending the CCRs. Usually this requires a rather high % vote of the membership.

RuthaC
Posts: 9

Posted:

Mary, I should have read the covenants before asking that question. The answer is on the last page. I will continue to read HOATALK because of the good info. THANKS

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