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| Author |
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DanielL3
(Louisiana)
Posts:47
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| 12/01/2008 9:10 AM |
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My HOA has entered into a lease agreement with the developer of a 55+ community. This lease is for a building which was to be originally conveyed to the HOA. The developer had used the building's assets and created liens against the building.
The lease has yet to be signed by both parties. Now, the developer wants the name of the facility changed from clubhouse to "community center". Is there anyone who may know if there is a legal difference, or advantage the developer has in changing the names?
Thanks
Daniel |
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JosephW
(Michigan)
Posts:788
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| 12/01/2008 2:49 PM |
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I don't think that there is a generally accepted legal definition. While it sounds like a marketing change to me, I would check with the local zoning board to see if "Community Center" carries any baggage with it, i.e. being open to the public. I would hope, however, that the lease covers how and by whom the club house/community center can be used.
Joe |
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RobertR1
(South Carolina)
Posts:2523
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| 12/01/2008 9:19 PM |
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Lets break this down, by first Joe's advice is sound.
Now:
The developer owns a building that was supposed to be turned over to the association at some point. (Since you made that clear I expect this was some kind of written proposal) Now the developer didn't fulfill his legal commitments and at this point wants to lease that building to the association. At the present time there are binding liens against the building that could result in the developer losing ownership of the building.
Enter the association and they are going to join in an agreement with a developer that could be legally responsible for his actions in not turning the building over as agreed. Further the association is going to obligate the owners and their money in such a shaky deal.
Then the developer says he wants the association to agree to a name change of this building.
If the association agrees to anything in this deal it appears to me they are pulled into the whole building defecits.
I expect there is more to the story, but above is what we know from the post of the OP.
My conclusion..........as they say, not with a ten foot pole would I touch this deal.
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DanielL3
(Louisiana)
Posts:47
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| 12/02/2008 11:06 AM |
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Robert,
Your sentiments were my sentiments from the beginning of this deal.
On top of it all this developer is a convicted felon. FACT!!
The HOA Board wants this building so bad it is entering into
this lease agreement and will raise dues to fund the operation.
The president of the HOA stated during a November meeting that the membership will have a vote on the acceptance or rejection of the lease. Now,
it appears, via email, the decision will be the Board's.
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BruceF1
(Connecticut)
Posts:696
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| 12/02/2008 1:42 PM |
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| I don't like the smell of this! It needs to be researched thoroughly before anything is agreed to or signed. There may be much more beneath the surface. |
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