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Old 02-18-2010, 02:11 PM
 
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We have a builder/developer that transferred the last home in the subdivision to himself and his wife with a Quit Claim Deed.

Unlike everyone else in the subdivision whose builder paid their prorated share of the HOA dues for the year of sale, this builder states that he isn't required to pay the dues for the time before the date of the Quit Claim Deed transfer.

This builder was the declarant who created the HOA Conditions, Covenants, and Restrictions. The CCR indicates:

- that the declarant doesn't pay HOA fees on unsold properties

- that HOA dues are pro-rated at time of closing/transfer (although the CCR is silent on this, the other builders paid their share for the year of sale while the purchasers paid the remaining annual assessment amount)

- the HOA is NOT under declarant control (it was transferred to the homeowners' control 18 months ago)

Anyone ever had this situation or know what NC law requires?

Thanks for the help!
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Old 02-18-2010, 07:33 PM
 
99 posts, read 274,832 times
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I think this statement protects the builder/developer/declarant prior to the transfer:

- the declarant doesn't pay HOA fees on unsold properties
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Old 02-19-2010, 02:39 PM
 
3 posts, read 5,288 times
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Originally Posted by got charlotte View Post
I think this statement protects the builder/developer/declarant prior to the transfer:

- the declarant doesn't pay HOA fees on unsold properties
Technically, the house was sold to him (the Quit Claim Deed transferred the property from the company to him personally ... and he and his wife personally have first and second mortgages).

The "declarant" is the builder's company (not the builder personally).
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Old 02-19-2010, 05:51 PM
 
99 posts, read 274,832 times
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the declarant (the developer/builder who doesn't pay dues) sold/transferred the home, correct? Then all that would be due is a pro-rated amount from the buyer.
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