Tag Archives: owns

Who should pay assessments on lots?

Q: Our development was approved by the county planning department in late 2000, but didn’t actually break ground until 2003. Once the HOA was created, assessments were levied on individual lot owners, but the developer has never paid assessments for any of the undeveloped lots that it owns.

Further, the developer holds two of the three seats on our…

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What happens to HOA when developer folds?

By Mike Huntermike_hunter

Attorney Michael Hunter specializes in community and condominium association law for the firm of Horack Talley

Question: We live in a condo subdivision planned for 56 units. The developer has fallen into financial difficulty and has only sold six units. There are now 16 completed units. The developer is renting the remaining 10 units. Even though the six homeowners are paying $155 monthly as association dues, the developer is not providing home maintenance. What legal recourse do we have? What would happen to our property if the developer declares bankruptcy or if all of the unsold property goes into foreclosure? Would the HOA, which only consists of six owners, be responsible for paying the mortgage on the clubhouse? Would we be responsible for paying property taxes on the unsold homes?

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