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When we signed on back in September to build a new construction home, the sales rep said we would have access to the community pool in our development. The HOA docs that we received immediately after signing on also mentioned the pool and how to get pool access once we move in.
Fast forward to yesterday, we received an e-mail from our sales rep indicating that the HOA has informed our builder that they have reached max capacity for the pool; so us and about 25 other homes being built will not have access to the pool. The builder also attached an addendum that we've been asked to sign. This addendum includes a one-time $700 credit to purchase a 1-year family membership to the local rec center that has a pool, in efforts to "make up for not having a pool".
I was just curious if there are any real estate agents/attorneys on this website that could possibly chime in with advice or opinions. Finding out that we will not have access to the pool is a deal breaker for us, and we want to back out of the contract. Aren't we entitled to receive our earnest money back because of this?
I agree...find a real estate attorney and ask about suing the builder. One year’s membership isn’t remotely fair compensation, IMO, but I’m not an attorney.
When we signed on back in September to build a new construction home, the sales rep said we would have access to the community pool in our development. The HOA docs that we received immediately after signing on also mentioned the pool and how to get pool access once we move in.
Fast forward to yesterday, we received an e-mail from our sales rep indicating that the HOA has informed our builder that they have reached max capacity for the pool; so us and about 25 other homes being built will not have access to the pool. The builder also attached an addendum that we've been asked to sign. This addendum includes a one-time $700 credit to purchase a 1-year family membership to the local rec center that has a pool, in efforts to "make up for not having a pool".
I was just curious if there are any real estate agents/attorneys on this website that could possibly chime in with advice or opinions. Finding out that we will not have access to the pool is a deal breaker for us, and we want to back out of the contract. Aren't we entitled to receive our earnest money back because of this?
Cheers.
Definitely talk to a real estate attorney. And don't sign anything until you do.
I would definitely talk to your agent first and clearly tell them you want out, if you haven't already. If your agent won't or can't get you terminated, with earnest money, or if you don't have an agent who represents YOU, and not the builder, then seek legal counsel.
FWIW, our contracts have an HOA review period, but it's a limited time similar to the inspection period, which I would imagine has run, even if your contract included it. This is a change since then, and you may need to make the case that this is a material breach.
What do they mean by reached max capacity for the pool? Not everyone is going to be using it at once so how many people can fit in it at one time is irrelevant. I would ask for clarification on that part.
Is there a reduction in the HOA dues as well, since you cannot use a major amenity? This sounds really strange.
I agree There is more to this story (That the poster may not know) Was this a new developer building in an already existing development with an already existing HOA? How many houses were in the already existing HOA/Pool Association? Is there an add on charge for pool membership?
No matter what the advice by above posters is good.
This happens.
Oversubscribed pools get complaints from HOA members, and the board sets a limit.
It is not terribly unusual for a developer to request access to a pool in a neighborhood they didn't develop, and for the buyers to lose access when the established neighborhood residents revolt.
If the OP has a beef, it is attorney time. Maybe with the other buyers who lost promised privileges.
But, verbal from the sales rep is just dust in the wind. The written contract will rule.
What do they mean by reached max capacity for the pool? Not everyone is going to be using it at once so how many people can fit in it at one time is irrelevant. I would ask for clarification on that part.
I doubt it's the pool can fit 50 people and we have 50 residents so no more. They are probably estimating some percentage of residents using the pool at a given time.
If the pool area has occupancy limit of 50 people, and they estimate 20% of residents using the pool at any given time, then they can have 250 residents with pool access without running into overcrowding issues. If they give 500 residents access they are likely to run into overcrowding issues.
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