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Subject: Builder vs Developer at transition
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02/04/2006 5:08 AM  
hi everyone

I am new to this forum and I am getting a wealth of information reading this forum.

We are a new community in Florida getting ready to transition from the developer to the homeowners.

The engineers report cited a number of issues. The builder and develop are attempting to sort out which items are theres to repair.

My question is can we take over the HOA from the developer prior to the items in the engineers report are fixed. There appears to be no major issues in the report

Thanks in advance to any feedback


02/04/2006 8:55 AM  
Your articles of incorporation and/ or bylaws will state at which point you can assume HOA responsibilities. I am curious- what is an engineer's report? I am unfamiliar with it. Good luck!


02/04/2006 10:40 AM  
MikeD2, I would assume you can. But I wouldn't before there is an agreement in writing as to who will repairs what items within what timeframe and who will pay for those repairs. Make sure to have an audit and get a managing agent and/or an attorney to help with the transition.



02/04/2006 11:18 AM  
You can take over from the developer when he meets the %sales requirement that is in you CC&r's. But Roger gave good advice to not do so until it is in writing as to whom is going to take care of which repairs or replacements of shoddy workmanship. The City should do the final inspection and release the subdivision at some point. Unfortantley some Cities do not do a very good job. I prepared the final inspection list for the developer and the City ended up using that list along with their's to make sure that everthing was done. Unfortunatly for us the City signed off before each and every item on the list was rechecked for the second time, and we still have spots of curb and gutter and etc. that were marked for replacemen, but never done. I will get the City to take care of that obligation now. They signed off, they are now responsible.

The in writing aspect is your only protection and assurance that some day everything may get corrected. The problem is that most new associations have no money to work with at the beginning because thier dues are artifically low because the developer is carrying part of the costs to make sales more attractive in his community. After the Association takes over reality hits home and your funds are very restricted and an attorney to get final repairs accomplished is out of the question and so you end up living with the problems until your association can afford to repair it themselves or force the City to take the responsiblity.

Play hard ball with the developer and your City!
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Forums > Homeowner Association > HOA Discussions > Builder vs Developer at transition

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