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Does a developer have an obligation to pay dues on unsold

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lots once the transition/takeover of...
Does a developer have an obligation to pay dues on unsold lots once the transition/takeover of board has taken place? This question applies to A Planned Unit Development (PUD) in Connecticut with 2 phases and 72 units when finished. There are currently 19 unsold lots. Phase 2 was purchased by a new developer from the original declarant.
Submitted: 1 year ago.Category: Real Estate Law
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Answered in 59 minutes by:
9/16/2016
Real Estate Lawyer: Damien Bosco, Attorney replied 1 year ago
Damien Bosco
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Customer reply replied 1 year ago
Do need more information?
Real Estate Lawyer: Damien Bosco, Attorney replied 1 year ago

Hello Craig: Yes. Is the developer still the owner of the unsold lots? Or was there a complete sell and buy of the lots wherein when sold the new current association reaps any benefits of an increase in market value?

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Customer reply replied 1 year ago
The new developer who purchased phase 2 owns the unsold lots. I do not believe he has paid any common fees since purchasing phase 2 from the original declarant. He had 40 lots in phase 2 and now has 19 empty/unsold lots. He is the exclusive builder. In other words, you choose the lot and he builds the home. The HOA manages the budget for landscaping, snow removal, insurance etc. for phase 1&2.
Real Estate Lawyer: Damien Bosco, Attorney replied 1 year ago

Hello Craig: Thank you for the additional information. If the new developer still owns the unsold lots, then the dues to the board would be the new developer's responsibility. The HOA would be responsibility for common charges, etc. We can continue to discuss.

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Customer reply replied 1 year ago
Not sure l understand the difference between "dues to the board and common charges?"
Real Estate Lawyer: Damien Bosco, Attorney replied 1 year ago

I meant the board would be responsible for taking care of the common areas (not common charges). We can continue to discuss if you want to do so.

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Customer reply replied 1 year ago
Are your answers based on Connecticut Common Interest Laws?
Real Estate Lawyer: Damien Bosco, Attorney replied 1 year ago

Hi Craig: My answers are based on my common legal knowledge of HOAs and applicable laws. I would be unable to give you a formal legal opinion with law citations from this site. You would have to get a legal opinion from a local attorney.

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