I am often asked by homeowners when they will be able to create a homeowner association after the developer of their community leaves. To begin, let me back up a bit and say that these people are living in a community that has not yet been transitioned from the developer to the residents. Their community is called a pre-transition community. What the homeowners don't realize is that their HOA was created long before they purchased their home and that they are already part of an existing homeowner association. I believe these residents think it's necessary for them to create an association at the point of transition but this is not the case.
I suggest that homeowners consult their deed restrictions and their management company for further clarification. As a homeowner, where you told there was no HOA when you purchased your home?
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2 comments:
I was actually told there was an HOA, but it was not run by the homeowners until a certain percentage of ownership existed in our community. It was a little sketchy on how the dues were collected & how much was due up-front when I bought the condo, but it all seemed to work itself out and the builder was fairly gracious about it.
Eric, thanks for your comment. It sounds like you were informed correctly. The transition period can depend on the percentage of homeowner ownership and/or when the declarant is willing to relinquish control based on other factors. The developer will typically decide how the initial dues will be collected and they should convey this to the management company and/or title companies that will work with them.
It’s always best that the buyer understands this process before closing. You are fortunate that your builder was willing to work with you on this matter.
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