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We bought in a new subdivision that had covenants that were…

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We bought in a new...
We bought in a new subdivision that had covenants that were filed, The developer sold out or was foreclosed. A new developer is now building but not to current covenants. Can he change them and bind me to them?
Submitted: 8 years ago.Category: Real Estate Law
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Answered in 2 hours by:
6/12/2010
Real Estate Lawyer: Legalease, Lawyer replied 8 years ago
Legalease
Legalease, Lawyer
Category: Real Estate Law
Satisfied Customers: 16,440
Experience: 13 years experience in RE Law, including LL/Tenant, contractor disputes, comm'l prop. issues
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Hello. If the developer is the owner of a majority of the units in the condo complex at this time, then they can change the covenants and everyone who purchased condos previous to the transfer between developers are bound by the changes. You can look into whether or not the developer actually pulled together an amendment document to the original covenants and filed the amendment with the property records for the condo complex --- but even if there is no recorded covenant amendment, once you point that out to the new developer, they will simply get a covenant document on record (assuming they are the majority owners). My suggestion is that you review your HOA documents to see what powers the developer has prior to transferring the management over to the owners --- but ultimately, if they are the majority owners, if there is nothing in the HOA documents to help you out here, then you may not have any recourse.

 

 

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Customer reply replied 8 years ago
I want to be clear, this is not a condo complex. They are single family homes and home sites. Does this make a difference or will we still be bound to the new covenants that are put in place?
Real Estate Lawyer: Legalease, Lawyer replied 8 years ago

Hello again. It does not make a difference. Home Owner Association laws apply to condo complexes and planned developments of homes like your situation. As far as the law is concerned, they are both communal / planned developments -- both typically run by boards of directors. They are both built in the same manner and then, once built, the developers who built them, as the condos or the houses are sold, decreases its ownership to a point where the management of the development can be turned over to the homeowners. In both instances, if the condos or the houses are still under construction and the developer is the majority owner, the developer can change the rules and amend the covenant documents to what is necessary in their view to complete the rest of the houses, sell them, and then turn the board over to the homeowners.

 

I wish I could give you different news, but I cannot.

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